The twin transition of the energy sector between decarbonisation and digitalisation

The energy sector is now called upon to lead an unprecedented transformation.

In the face of the climate crisis and global market instability, the urgency to abandon dependence on fossil fuels is growing. At the same time, the push towards digital innovation opens new possibilities to make the energy system more efficient, flexible, and secure. In this context, the twin green and digital transition promoted by the European Union, aims to build a more resilient, sustainable, and technologically advanced future.

This vision is outlined in the Joint Research Centre — JRC’s report Towards a green and digital future, which highlights how sustainable digital technologies can enable a carbon-neutral EU by 2050 and identifies key conditions for the success of both transitions. The report also served as the foundation for the 2023 Strategic Foresight Report, building on the objectives of the European Green Deal to explore long-term pathways for a fair and sustainable Europe. ¹

This is a challenge affecting the entire Italian country, but it takes on strategic importance in regions like Sicily: a natural hub for renewables, an energy bridge between Europe and the Mediterranean, yet still facing infrastructural, regulatory, and training obstacles; such as lengthy permitting procedures and a lack of adequately trained professionals to support digital and clean energy technologies.

Technology and renewables for a smarter energy system

The current energy system remains strongly tied to fossil fuels, with direct impacts on climate change and energy security. To meet European decarbonisation targets and at the same time respond to growing electricity demand — projected to increase by 60% by 2030² — it will be essential to act on two fronts: an increasingly large share of renewable energy and a deep digitalisation of infrastructure.³

The transition to a cleaner and smarter energy system involves integrating renewable sources and evolving tools for managing, planning, and controlling grids. Digitalisation plays a decisive role in this process, offering the possibility to optimise system efficiency and improve grid stability. ⁴

In Italy, in 2024, national energy production covers 83.7% of domestic demand, a growing figure thanks to a significant 29% increase in renewable capacity compared to the previous year. At the same time, there has been a clear reduction in coal use, one of the main sources of CO₂ emissions. ⁵

Digitalisation is now a key factor in unlocking the potential of renewable energies, improving their efficiency and ensuring greater grid reliability.⁶

Among the most promising solutions are Artificial intelligence (AI), to optimise energy consumption; smart grids, for real-time electricity monitoring and transport; and Internet of Things (IoT) sensors, which allow constant monitoring of installed systems. ⁷

In particular, the use of AI proves especially effective in managing renewable sources, which are characterised by high variability. Predictive analysis of weather data makes it possible to anticipate drops and spikes in production, while on the demand side, consumption forecasting reduces waste and improves overall system efficiency.⁸

However, while artificial intelligence offers significant benefits for managing renewable energy, it also comes with environmental costs. The infrastructure behind AI, particularly data centres, requires large amounts of electricity, often still generated from fossil fuels, and consumes vast quantities of water for cooling. Moreover, the production of AI hardware depends on critical minerals and rare earth elements, whose extraction can have serious ecological impacts. ⁹

At the institutional level as well, the twin transition is at the heart of the political agenda. The European Union has launched an action plan to strengthen the digitalisation of the energy sector, promote energy communities, and reduce fossil fuel dependency, also through the development of a Common European Reference Framework (CERF) for energy-saving applications. ¹⁰ In Italy, the NRRP (National Recovery and Resilience Plan) includes significant investments in expanding renewable sources and strengthening smart grids. ¹¹In Sicily, the 2021–2027 ERDF Programme has allocated targeted funds for the development of digital technologies and clean energy solutions ¹² also supporting the creation and expansion of Renewable Energy Communities (RECs), with the goal of improving energy self-sufficiency and efficiency across the territory. ¹³

Sicily between renewable energy and new transition challenges

Sicily is currently one of the regions with the greatest potential to contribute to the twin transition in the energy field. Thanks to its geographical position and natural resources, the island stands out for its ability to produce energy from renewable sources, particularly solar and wind. It is no coincidence that 85% of new plant applications in Italy come from the South, with Sicily at the forefront. ¹⁴The region could also become a central node for energy connectivity between Europe, Africa, and Asia, also thanks to the development of submarine infrastructure for energy transport and advanced projects based on artificial intelligence. ¹⁵

Sicily, due to its strategic position in national and European energy connections, is strengthening its commitment to the energy transition, aiming to build an efficient, resilient, and sustainability-oriented system. At the heart of regional policies is digitalisation, seen as a lever to enable a low-cost, high-efficiency energy model based on local renewable sources. An increasingly interconnected, digital system founded on clean energy could, in the future, make production based exclusively on regional and national resources possible ¹⁶

This transformation, however, brings new challenges. One of the most significant is related to security: digitalising the grids exposes the energy system to increasing risks of cyberattacks, with potential impacts on critical infrastructure and service continuity. It is therefore essential to invest in secure design, awareness, and operator training, as well as promote the adoption of shared standards to strengthen the response to potential cyber threats and ensure a common technical language in the field of cybersecurity. ¹⁷

Another issue concerns skills: the adoption of advanced technologies requires adequately trained professionals. Training and reskilling pathways are needed to ensure that the workforce in the sector keeps pace with innovation. ¹⁸

Finally, the slowness of permitting procedures risks slowing down the entire transition: in 2024, only 2% of renewable plant applications reach completion, while 90% risk remaining stalled. ¹⁹

Streamlining these processes and supporting businesses and territories through the transformation is essential to fully seize the potential of the energy twin transition.

In this context of profound transformation, the TRANSFORM project takes shape, with the goal of strengthening the skills of workers and small and medium-sized enterprises in the key sectors of green and digital transition.

Supporting the transition of the energy sector today means investing in technologies, people, and territories to build a system capable of addressing environmental, economic, and geopolitical challenges.