“The energy sector is not just another industry within Europe’s industrial strategy: it is the enabler that underpins the entire European economy,” says Gianni Vittorio Armani, Head of Enel Grids and Innovability.
In an Enlit exclusive, Armani gives several reasons why Europe’s long-term global competitiveness hinges on a robust industrial strategy, led by the energy sector. By enhancing grid infrastructure and creating a regulatory framework which is adaptable to the evolving energy markets, Europe is perfectly poised for a reliable, robust, and sustainable energy future.
How will AI accelerate the energy transition?
Artificial intelligence is transforming various sectors of our work and daily lives by automating routine tasks, boosting productivity, and shifting our attention to added-value, core actions.
Distribution networks have various applications that can help DSOs manage and improve grid performance, especially considering their evolving role as enablers of energy transition.
AI can support with analysing vast amounts of data generated by smart meters and its digital components, enabling utilities to boost fraud management, operational efficiency, real-time management and forecasting capabilities.
At Enel, we are already working on further developing and improving prediction failures and identifying maintenance needs, reducing downtime and improving network reliability or advanced forecasting models of extreme climate events aimed at supporting grid resilience.
We are working on models capable of predicting the impact of vegetation growth and sick plants on power lines, suggesting where and when to intervene and virtual assistants to support the workforce during field intervention.
Soon, AI will optimise the forecasting of future connections and energy demand to prioritise development interventions, maximising hosting capacity and optimising energy recovery actions through loss detection and analysis. AI is an effective tool to support interaction with the customer, increasing engagement and response effectiveness.
Europe needs a strong industrial strategy to ensure its global competitiveness. What role must the energy sector play in this strategy?
Europe’s long-term global competitiveness hinges on a robust industrial strategy, and at its heart is the energy sector. As the backbone of modern economies, especially with industry even more electrified, the energy sector, particularly in terms of electricity, must lead this strategy for several key reasons:
- The Energy Sector: Enabler of Industrial Competitiveness
The energy sector, particularly electricity, is the fundamental enabler of all other industries. As Europe seeks to remain competitive, energy must not only be reliable, resilient, and affordable but also support innovation and efficiency across all sectors. An efficient energy sector ensures that industries from manufacturing to high-tech services can operate optimally and grow sustainably. As the electricity supply becomes more renewable, abundant, and cost-efficient, industries can leverage this for long-term growth and lower operational costs, particularly in energy-intensive sectors.
- Electrification and Decarbonisation: Securing Energy Independence
Europe’s energy strategy must revolve around electrification and decarbonisation. By accelerating the shift from fossil fuels to renewable electricity, Europe can reduce its dependence on imported energy and improve its security of supply.
As Mario Draghi’s report on Europe’s competitiveness pointed out, energy independence is critical for the long-term stability and growth of the continent’s economy.
- Infrastructure Development: Supporting the Energy Transition
To fully enable electrification and decarbonisation, Europe must invest significantly in infrastructure.
Recently in Eurelectric’s study ‘Grids for Speed’ it has been found that the investment needs of the EU27 plus Norway need to reach an average of €55-67 billion a year between 2025 and 2050. That is almost doubling current values.
These investments include expanding grid capacity, integrating renewable energy sources, and upgrading digital technologies for more efficient energy management. Without this infrastructure, the energy sector cannot support the rest of Europe’s industries, nor can it deliver on the goals of reducing emissions or enhancing energy security. A modern, resilient infrastructure will serve as the platform upon which the rest of Europe’s industrial strategy is built.
- Supporting Technological Innovation for Competitiveness
To remain globally competitive, Europe’s energy sector must foster technological innovation that will not only improve efficiency and reduce costs across the energy system but also create new economic opportunities, positioning Europe at the forefront of the global energy transition.
The energy sector is not just another industry within Europe’s industrial strategy; it is the enabler that underpins the entire European economy. A strong, decarbonised, and resilient energy system will allow Europe to stay competitive in a global market that increasingly values sustainability, security, and innovation.