Reports from the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) underscore the urgency of reducing greenhouse gas emissions from the energy sector, which remains one of the largest contributors to global emissions. They stress the need for accelerated deployment of renewable energy sources (RES), energy efficiency measures, and technological innovation to achieve net-zero emissions and limit global warming to 1.5°C. This transition is intrinsically linked to the twin transition, where digital and energy transformations reinforce each other.  

Digitalisation plays a critical role in managing complex, increasingly decentralised energy systems, enabling smart grids, real-time energy management, and prosumer (producer + consumer) participation. As power generation migrates from centralised fossil fuel plants to Distributed Energy Resources (DER) such as rooftop solar in energy communities and bidirectional electric vehicles, there is a paradigm shift in how energy is produced, distributed, and consumed. These energy communities empower citizens to generate and share energy locally, enhancing resilience, reducing dependency on imports, and supporting the vision of EU energy sovereignty, especially relevant during supply disruptions. 

Moreover, a just transition is essential to ensure that no one is left behind. This principle, embedded in the European Green Deal and international climate discourse, highlights the importance of social inclusion, job retraining, and equitable energy access as economies decarbonise. Integrating large volumes of RES into Europe’s ageing grid infrastructure poses technical, regulatory, and economic challenges, yet also offers opportunities for modernisation and innovation. The development of a European common energy market seeks to harmonise energy flows, enhance interconnectivity, and balance supply and demand across borders.