Accelerating Energy and Environmental Transition in Europe through digital

Digitalization is becoming ubiquitous in the energy sector, enabling a more decentralized energy system and blurring the traditional energy sector boundaries, with more integration with buildings, mobility solutions and industry. Digitalization is accelerating the pace of the energy transition, mainly thanks to three levers: 1) enhancing customer interaction with the energy system, 2) optimizing operations, and 3) enabling new business models for traditional energy actors as well as opening up space for new entrants from other sectors and energy start-ups. Digital technologies are also facilitating a cost-effective, clean energy transition, mainly by increasing energy efficiency and flexibility, as well as enabling the integration of renewable electricity into smart(er) grids and developing low-carbon solutions. This article gives a brief overview of the digitally-enabled innovations in Europe's energy markets and how various players are positioning themselves to take advantage of these opportunities. It concludes by highlighting some of the policy issues this transformation raises and the challenges ahead for European businesses to reap the benefits