ERT Position Paper on Digital revolution in energy

Europe is at a critical turning point. Rising electrification, growing data centre demand, and high energy costs are putting pressure on the continent’s energy system and competitiveness. At the same time, productivity growth is slowing and industrial investment is increasingly moving to regions with faster permitting and more flexible regulation.

Digitalisation and artificial intelligence offer a major opportunity to address these challenges. Technologies such as smart grids, advanced data analytics, predictive maintenance, and digital energy management can improve efficiency, reduce costs, accelerate electrification, and support the integration of renewable and low-carbon energy.

However, companies still face significant barriers, including slow permitting processes, outdated infrastructure, fragmented regulations, and limited access to energy system data.

To unlock the full potential of a digital energy system, Europe must accelerate infrastructure investments, modernise regulatory frameworks, enable better data sharing, and integrate flexible digital solutions across the grid. A stronger political push for digital technologies will be essential to drive Europe’s green and competitive energy future.