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Shaping Europe’s digital future

Digital technologies to power Europe's clean energy transition

  • NEWS ARTICLE
  • Publication 20 July 2026

The European Commission adopted the Electrification Action Plan and proposed an amendment to Regulation (EU) 2019/943 to future-proof electricity bills in the EU.

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GettyImages © Dilok Klaisataporn

Together, these initiatives aim to reduce system costs, improve the efficiency of electricity networks and accelerate the deployment of smart technologies, helping households, businesses and industry benefit from a cleaner, more affordable energy system. Read the press release for more details on the initiatives.

As electricity demand grows through the electrification of transport, buildings and industry, Europe's grids must become not only larger but also smarter. Digital technologies are key to optimising existing infrastructure, integrating renewable energy more efficiently and reducing costs. By enabling a more flexible electricity system, they will also support Europe's energy security by reducing reliance on imported fossil fuels.

A central element of the proposal is the accelerated deployment of smart meters. These give consumers near real-time information about their electricity use, enabling them to shift consumption to periods when electricity is cheaper and cleaner. Smart meters also help system operators better manage demand, easing grid congestion and reducing the need for costly network upgrades. The proposal sets a EU-wide objective of equipping at least 50% of final customers with smart meters by 2030 and 75% by 2033.

The proposal also strengthens the foundations for smart electricity grids by requiring transmission and distribution system operators to exchange grid data in a more harmonised and secure manner. Better access to high-quality data will improve network planning, increase system visibility and support the integration of renewable energy, storage and demand-side flexibility. It will also enable innovative digital services that help consumers and businesses participate more actively in electricity markets.

Artificial intelligence (AI) is expected to play an increasingly important role in managing Europe's electricity system. By analysing grid data in real time, AI can forecast demand, optimise electricity flows, improve congestion management and make better use of existing infrastructure. To encourage innovation, the proposal establishes a voluntary European framework for the secure reuse of electricity grid data for research and innovation, supporting the development of AI-powered solutions while ensuring appropriate safeguards.

These measures build on the EU's wider Digital Union agenda. They complement the Data Act by promoting secure and fair access to sector-specific data and align with the AI Act to ensure AI applications for electricity system operation meet Europe's framework for trustworthy AI.

They also contribute to the objectives of the Cloud and AI Development Act, which seeks to expand Europe's cloud computing and AI infrastructure by accelerating the deployment of sustainable data centres and computing capacity. Smarter electricity networks will help accommodate the growing power demands of this digital infrastructure while enabling data centres to support grid efficiency through flexible electricity use, on-site renewable generation and energy storage.

The initiative also complements the AI Continent Action Plan, which seeks to expand Europe's AI computing capacity through AI Factories, AI Gigafactories and sustainable data centres. By supporting a more efficient and flexible electricity system, the measures help provide the energy foundations needed for this next generation of AI infrastructure.

Together, the Electrification Action Plan and the proposed regulation mark an important step towards a cleaner, smarter and more resilient European energy system. By bringing together energy policy and the Digital Union agenda, the Commission is laying the foundations for an electricity system that supports Europe's climate objectives while strengthening its technological leadership, competitiveness and strategic autonomy.