This ISGAN discussion paper examines the growing role of digital transformation in the evolution of modern energy systems. It highlights how utilities are leveraging digital technologies—such as data analytics, artificial intelligence, and the Internet of Things—to improve efficiency, reduce costs, and enable new business models. The document situates digitalisation within the broader context of the energy transition, emphasising its importance in integrating renewable energy, enhancing grid flexibility, and supporting decentralised energy systems. The publication explores key application areas across the utility value chain, including power generation, transmission and distribution, and customer services, illustrating how data-driven approaches can optimise operations and improve reliability. It also identifies major enablers of digital transformation, such as organisational change, partnerships, and investment in digital skills and infrastructure, alongside barriers including legacy systems and cultural resistance. This publication was prepared for the International Smart Grid Action Network (ISGAN) by Working Group 4. ISGAN is organized as the Implementing Agreement for a Co-operative Programme on Smart Grids (ISGAN) and operates under a framework created by the International Energy Agency (IEA). The views, findings and opinions expressed herein do not necessarily state or reflect those of any of ISGAN’s participants, any of their sponsoring governments or organizations, the IEA Secretariat, or any of its member countries.
ISGAN Working Group 4 (Thu,) studied this question.
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