Powering Europe’s future: How AI and digital grids can secure Europe’s climate and industrial leadership

The integration of artificial intelligence (AI) and digital technologies into energy grids is a strategic imperative for Europe. According to the International Energy Agency (IEA), by 2035, AI could enable the energy sector to reduce CO₂ emissions up to three times more than the total emissions produced by today’s data centres. AI-driven grid monitoring alone can increase line capacity by 60 per cent, unlocking the integration of hundreds of megawatts of renewables. These advances promise not only accelerated progress towards Europe’s climate goals, but also lower energy costs and enhanced economic growth for citizens and industry alike.  

Europe has a global leadership in energy technologies today. Maintaining it amid the rise of AI and digital tools is vital.   

To realise this vision, Europe must demonstrate sustained political leadership and foster a shared commitment between the European Commission and Member States. Only through coordinated action at EU level can we maintain momentum and prevent fragmentation across the Union. The European Grids Package and the forthcoming strategic roadmap on digitalisation and AI in energy are critical levers for strengthening Europe’s competitiveness, climate leadership and industrial resilience. 

To achieve these ambitions, we recommend: 

• Fostering access to high-quality energy data by using common, standardised data frameworks to improve reliability, interoperability and effective data sharing across grid operators and systems; 

• Aligning regulatory frameworks by ensuring consistent implementation of new EU rules, clear and proportionate AI risk classification and timely availability of harmonised standards; 

• Investing in scalable, cross-border pilots that apply AI and digital tools to build smarter, more secure systems in critical infrastructure, including energy. Our Copenhagen Project2 builds on this vision, calling for mobilising unspent EU and national funds as a bridge toward a dedicated funding envelope under the next MFF; 

• Modernising investment approaches by adopting a total expenditure (ToTEx) approach and productivity metric to make digital assets fully recoverable, and to drive intelligent grid upgrades; 

• Streamlining and automating permitting processes through digital tools and AI, extending fast-track measures to grid infrastructure; 

• Developing of new flexibility mechanisms by conducting holistic assessment of flexibility needs and establishing a broad and inclusive EU-wide definition of flexibility; and 

• Boosting digital skills in the energy sector by including the energy sector in national skills strategies.