Digital energy systems can bring real benefits if implemented effectively

The European Economic and Social Committee (EESC) sounds the alarm bell and warns that the advantages of energy system digitalisation will only materialise if red tape is removed, consumers are encouraged to play an active part, and funding is allocated to up-skill workers.

Too many obstacles still undermine the potential of digital energy systems. Smarter solutions are difficult to put into practice, in particular due to heavy administrative procedures, lack of effective incentives, and the inflexibility of the transmission and distribution network due to underinvestment in energy infrastructure.

These are the main conclusions reached in the EESC opinion Digitalising the energy system – EU Action Plan by rapporteur and co-rapporteur Thomas Kattnig and Zsolt Kükedi and adopted at the March plenary session.

Overall, the EESC backs the objectives and most of the measures proposed in the European Commission's action plan. The energy transition is intrinsically linked with the digital transformation, and this means important benefits in terms of energy savings, reduced energy intensity and better management of energy infrastructure.

However, the Commission fails to integrate the action plan into the general energy policy and creates a silo approach, which focuses only on digitalisation and ignores the general framework.

The digitalisation of the energy system must lead to cooperative solutions where users can avail of incentives to participate in the digitalised energy system. Some examples are smart meters, dual-charging e-vehicles that support the stability of the electricity system, peer-to-peer trading, virtual self-consumption and energy sharing. These all require digital tools, however administrative barriers and the absence of real incentives can be discouraging.

Encouraging active consumers

In the future design of energy infrastructure, all consumers must be actively involved in the development of smart energy systems. Civil society must be enabled to participate in the energy transition.

It is extremely important to strengthen the role of active consumers in digitalisation and to encourage and enable them to use as many smart solutions as possible, said Mr Kükedi.

The tools must be user-friendly, with a special focus on vulnerable groups and people with disabilities. If the social dimension is neglected during the implementation, the transformation risks failing due to public resistance.

Digital solutions may be delayed if there is a shortage of skilled workers

New data-driven services and innovative technology solutions may run the risk of not being implemented fast enough if there are not enough skilled workers and trained professionals to help deploy them.

To achieve these goals, targeted labour market and education policy measures must be adopted, allocating relevant financial resources and setting up a specific action plan.

We need a coordinated approach so that appropriate measures can be taken as soon as possible. To this end, close cooperation with the social partners and the involvement of civil society organisations is essential, said Mr Kattnig.