[ECO]Eurelectric Calls for Digital Grid in Europe

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Digital grid transformation is Eurelectric’s blueprint for a green energy future in Europe.

Eurelectric, the association representing Europe’s electricity industry, has issued an urgent call for action to unlock the full potential of digital grid technologies across the continent. A new study, “Wired for Tomorrow,” reveals significant untapped potential in grid digitalization, hampered by regulatory hurdles and a widening skills gap.

As Europe races towards ambitious decarbonization goals, the electricity grid is undergoing a dramatic transformation. The emerging power system is increasingly characterized by small-scale renewable energy sources,

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, and heat pumps connecting directly to the grid. This shift necessitates a rapid expansion, modernization, and digitalization of infrastructure by distribution system operators (DSOs).

Kristian Ruby, Secretary General of Eurelectric, emphasized the criticality of this transition: “There are significant opportunities to leverage digitalization for grid development, operations, and maintenance. However, to fully unlock these benefits, grid operators need clear regulations to support their digital transformation.”

The Eurelectric study, which surveyed 30 ********* DSOs, found that while digitalization offers substantial improvements in efficiency for building, operating, and maintaining the power grid, several bottlenecks are impeding progress. Regulatory challenges were identified as the biggest external hurdle, with unclear or unsupportive regulations slowing digital adoption. Conversely, regions with clear regulatory frameworks for digitalization investments, particularly in areas like cybersecurity, demonstrated higher levels of digital maturity among DSOs.

A skills shortage ranked as the second most significant challenge. This lack of workers with the necessary digital skills is particularly acute in areas such as data analytics, cybersecurity, and advanced grid management technologies. Many DSOs are also struggling with outdated infrastructure, including legacy technology systems ill-equipped to handle the vast amounts of data generated by an evolving, more distributed grid.

DSOs are facing mounting pressure to keep pace with growing demands for new customer connections, particularly from renewable energy sources and electric vehicle charging stations. Additionally, current systems for managing grid flexibility need significant development to meet future requirements as renewable energy sources become more prevalent.

The urgency of addressing these challenges is underscored by projections that renewables will constitute 42.5% of Europe’s final energy use by 2030. A digital-ready grid is crucial to managing this shift efficiently and reliably.

In light of these findings, Eurelectric is calling for several key actions. The association urges national regulators to create frameworks that incentivize digitalization investments, ensuring appropriate compensation for DSOs undertaking these crucial upgrades. They also call for coherent implementation of new legislation introduced under the EU’s green and digital transitions, including the Electricity Market Design, Renewable Energy Directive, and Data and AI Act.

Eurelectric emphasizes the critical need to address the skills gap, proposing the formalization of education programs, the development of targeted training initiatives, and the introduction of EU-wide certifications for digital grid technologies. There’s also a pressing need for significant investment in upgrading existing grid infrastructure to handle a digitalized power system’s increased data flow and complexity.

Further research and development into advanced flexibility management systems is crucial to accommodate the growing share of renewable energy sources. These systems will balance supply and

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The Eurelectric “Wired for Tomorrow” study serves as a wake-up call for policymakers, industry leaders, and educators. As Europe’s power grid stands at a critical juncture, the successful integration of digital technologies will play a pivotal role in achieving the continent’s ambitious climate goals while ensuring a reliable and efficient electricity supply for millions of Europeans.

Eurelectric’s call to action underscores the urgency of addressing these challenges head-on, paving the way for a smarter, more resilient, and sustainable power grid for Europe’s future. The coming years will determine whether Europe can successfully navigate this digital transition and emerge as a global leader in smart grid technology.

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