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The European Commission has released recently (7 July 2025) a new report examining the ways the modern technologies and AI can facilitate the European energy system’s digital transformation and, at the same time, accelerate the transition to a regional climate neutrality. At the same time, the report underlines the perspectives in exploring the use of AI models in the sustainable energy processes.
Background
The present EU energy sub-union strategy was revealed in February 2015; then later, the key priority of the Juncker Commission (2014-2019) was aimed at building an “energy union” that would give the EU consumers, including households and businesses, a secure, sustainable, competitive and affordable energy framework.
Since then, the Commission is publishing yearly reports which monitor the implementation and progress of this key priority, to ensure that the Energy Union Strategy is achieved.
More in, e.g. https://energy.ec.europa.eu/strategy/energy-union_en
It has to be mentioned that the energy issues in the European integration structures are of a complicated nature. Thus, the process of implementing the energy union is a shared competence between the EU institutions and the member states; the latter are obliged to formulate their national plans, which outline the ways the member states intend to address the EU-wide common energy policy.
Therefore, there are five closely related and mutually reinforcing dimensions in the EU-member states’ energy policy framework:
– energy efficiency, including improved energy efficiency policies aimed at reducing dependence on energy imports with lower emissions, and incentives driving jobs and growth;
More on energy efficiency in: https://energy.ec.europa.eu/topics/energy-efficiency_en
– renewables: the EU intends to retaining its leadership in the area of renewable energy;
More on renewables in EU: https://energy.ec.europa.eu/topics/renewable-energy_en
– greenhouse gas emissions reductions, including the EU’s commitment to the Paris Climate Agreement and minimize all harmful for health emissions;
– energy framework interconnections’ directions with a fully integrated internal energy market- enabling the free flow of energy through the EU-27 states, as well adequate infrastructures without technical or regulatory barriers; and
– research and innovation aimed at supporting breakthroughs in low-carbon and clean energy technologies by prioritizing research and innovation to drive the energy transition and improve competitiveness.
The 10-year national energy and climate plans (so-called NECPs) outline how EU countries intend to meet the EU energy and climate targets for 2030.
Latest energy report’s findings
Presently valid account of the energy situation in the EU member states, revealed in the 2024 State of the Energy Union report (published in September 2024), describes the ways the EU has managed unprecedented challenges in the energy policy landscape during this Commission’s mandate, equipping the EU with a regulatory framework for pursuing the clean energy transition and laying the foundations for renewed economic growth and competitiveness.
At the same time, over the past years, the EU has managed to withstand critical risks to its security of energy supply, regain control over the energy market and prices, and accelerate the transition towards climate neutrality.
More in: https://energy.ec.europa.eu/strategy/energy-union/ninth-report-state-energy-union_en
AI application in the energy sector
The report also shows how decentralized AI applications can help managing local energy zones more flexibly and reliably. These digitally-based systems can support real-time forecasting, autonomous control and market participation, especially as the energy landscape becomes increasingly decentralized and weather-dependent.
On the demand side, AI-powered services are enabling consumers and energy communities to better understand their consumption patterns and actively contribute to grid stability and energy efficiency.
Source and references in: https://energy.ec.europa.eu/publications/state-energy-union-report-2024_en
Advanced AI techniques, including generative and hybrid models, are specified in the report as critical for “creating intelligent digital replicas of the European energy grid”. These digital models will offer new capabilities for predictive maintenance, dynamic security analysis and outage mitigation at scale.
Citation from: https://digital-strategy.ec.europa.eu/en/library/artificial-intelligence-unlocking-smarter-greener-energy-future
The report also introduces key infrastructure concepts to support widespread AI adoption in the energy sector. Hence, the EU AI Factories are presented as dedicated hubs for training and optimizing energy-specific AI models, while Model Delivery Networks enable real-time, low-latency inference across distributed cloud and edge environments.
More on AI factories and “Green energy transition” in our publications: = a) https://www.integrin.dk/2024/12/13/european-ai-factories-using-massive-computing-facilities/; and b) https://www.integrin.dk/2023/12/05/european-green-deal-and-clean-transition-in-energy-sector/
Strategic recommendations for the energy sector include the development of harmonized data standards to ensure interoperability, targeted investment in high-performance computing infrastructure, regulatory alignment, and robust cybersecurity frameworks. The report also highlights the importance of supporting consumer-facing innovation and ensuring that the benefits of digitalisation are broadly accessible across the EU.
This report’s outcomes are contributing to the European Commission’s broader objectives under the AI Continent Action Plan*), the EU Cloud and AI Development Act and the Clean Industrial Deal. It supports a future in which Europe’s energy system is not only smarter and more efficient, but also more secure, sustainable and inclusive.
*) Note. The European-wide AI plan includes two vital directions: 1) competitiveness and productivity: AI-driven automation, optimization, and support to decision-making will drive productivity gains and innovative business models, enhancing Europe’s economic prosperity.
2) sovereignty, security and democracy: technologies play an increasing role in the global balance of power. Thus, AI has become essential for the EU-wide security and safeguarding democracy.
Additional aspects in the Union’s “digital energy” framework
The report also recalls the importance of the EU-wide legislative initiatives, such as, e.g. Net-Zero Industry Act and the Critical Raw Materials Act, SRMA alongside the reform of the Electricity Market Design to face the competitiveness challenges that EU manufacturers face in net-zero technologies, on global and domestic markets.
More on CRMA in: https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/green-deal-industrial-plan/european-critical-raw-materials-act_en
Finally, the report explores the role of AI across all European energy system spheres: from generation and consumption to the digital infrastructure that inter-connects the energy providers. It specifically focuses on the development of digital models within the emerging EU-wide “energy data space” as key enablers of real-time and data-driven energy management.
More on the European AI plan in: https://digital-strategy.ec.europa.eu/en/factpages/ai-continent-action-plan.
Additionally on EU approaches to AI in: https://digital-strategy.ec.europa.eu/en/policies/european-approach-artificial-intelligence