Page 22 - European Energy Innovation magazine - spring 2023 edition

Spring 2023 European Energy Innovation
22 DIGITALISATION

Digitalisation of the European

Energy System

By Pearse O'Donohue (pictured), Director of Future networks, Directorate-General for Communications
Networks, Content and Technology, European Commission

Why is the Commission proposing energy resources during peak hours. particularly in the distribution grid.
a plan to digitalise the energy Investments in digital solutions,
system? In the long-term, digitalization such as grid optimization, can
To tackle the EU's dependence will be a necessity for integrating reduce capital expenditures on
on Russian fossil fuels and the decentralized forms of renewable enhancing existing grid infrastructure
ongoing climate crisis, we need to energy into the grid, reducing and support the deployment of
accelerate the twin digital and dependence on imported fossil technologies such as electric cars
green transformation of the EU’s fuels and their price volatility. This and decentralised renewables. As
energy system. integration requires more attention part of the Digitalisation of Energy
to grid management and more grid Action Plan, the European electricity
Smart building systems, meters, and flexibility at local level, which can system operators, both for the high-
electric vehicles, as well as Internet be achieved through activation of voltage (transmission) as the
of Things (IoT) devices, provide consumers and better management medium and low-voltage
critical information for monitoring of prosumers’ energy assets. A (distribution) grids, have jointly
energy consumption, increasing seamless access to granular data signed a Declaration of Intent to
renewable energy integration, and about the state of the electricity develop a digital twin of the
reducing costs. Data services, grid and prosumer assets will be European electricity grid: The aim
energy management systems, and critical for delivering energy services is to collaborate on digitalizing the
applications hold enormous potential, but can only be achieved through grid, promoting mutual learning,
but need further support to become widespread digital tools and shared and designing for interoperability.
widespread. data infrastructure.
What measures will the Action
To support this transformation, the How is the Commission Plan implement to address
Commission will undertake a series of encouraging investment in the cybersecurity issues?
actions through legislative initiatives, development of smart grids and Digitalisation can bring many
investments, and coordination with digital solutions related to energy? benefits to the energy system,
Member States over the coming The Commission is promoting including increased efficiency,
months and years. investment in the development flexibility, and resilience. However,
of smart grids and related digital it also introduces new challenges
In the medium term, digitalization solutions to ensure the energy sector related to the security of the energy
will facilitate seamless interactions reaches its full potential. Despite infrastructure and the reliability of
among diverse actors, enabling significant progress in digitalisation, the electricity grid.
consumers to benefit from with 51% of households and SMEs
domestic energy sources such in the EU equipped with smart To address these challenges, the
as solar panels and community- electricity meters, more must be EU has a comprehensive approach
owned wind turbines. For example, done to achieve a fully smart and that combines specific measures
consumers could participate in flexible energy environment. for the energy sector with a broader
energy communities and collective cybersecurity framework. The
self-consumption schemes, taking To reach the goals of the Fit for recently adopted revised Network
advantage of their own solar panel 55 and REPowerEU initiatives for and Information Security Directive,
generation and benefit from lower cost renewable energy and energy known as NIS2, recognizes the energy
electricity than buying from the grid. efficiency, the Commission estimates sector as a critical infrastructure and
that approximately EUR 584 billion in outlines provisions for national crisis
Similarly, bidirectional electric vehicle electricity infrastructure investments response, risk management, and
charging would provide additional will be required from 2020 to 2030, information exchange.

www.europeanenergyinnovation.eu