Commissioned by the Directorate-General for Communications Networks, Content and Technology (DG CNECT), the report explores  - from generation and consumption to the digital infrastructure that connects them. It focuses in particular on the and the emerging as key enablers of real-time, data-driven energy management.

The report shows how decentralised AI applications can help manage local energy zones more flexibly and reliably. These systems can support real-time forecasting, autonomous control and market participation, especially as the energy landscape becomes increasingly decentralised 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.

Advanced AI techniques, including generative and hybrid models, are seen as critical for creating intelligent digital replicas of the European grid. These digital twins offer new capabilities for predictive maintenance, dynamic security analysis and outage mitigation at scale.

The report also introduces key infrastructure concepts to support widespread AI adoption in the energy sector. AI Factories are presented as dedicated hubs for training and optimising energy-specific AI models, while Model Delivery Networks enable real-time, low-latency inference across distributed cloud and edge environments.

Strategic include the development of harmonised 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 work contributes 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 is not only smarter and more efficient, but also more secure, sustainable and inclusive.

You can download the full report below.