Digitalization Could Hold the Key to the Energy Transition

Power grids face a modernization crisis as renewable energy expands faster than infrastructure can adapt. The result is major connection bottlenecks across the U.S. and EU that threaten the achievement of their decarbonization goals. Gridspertise Chief Product Officer Sergio Martìn Guerrero says digitalization offers the tools to manage the transition from traditional one-way energy flows from large plants to bidirectional energy generated from millions of distributed sources.

Electricity currently represents roughly 21% of global energy use, but projections show that figure climbing to between 30 and 50% by 2050, with European markets leading the transition. Renewables supply about 40% of worldwide electricity generation today and forecasts put that share at 55 to 75% by mid-century, driven largely by solar installations.

This shift pushes generation closer to consumption points through distributed assets rather than centralized facilities, fundamentally changing how grids must operate.

Infrastructure is struggling to keep pace with renewable deployment. Connection queues have grown substantially, with new generation capacity waiting for grid access while existing networks handle intermittent power from countless rooftop solar panels, wind farms, and battery systems sending electricity in multiple directions.

Distribution networks built for predictable flows from large power plants now manage complex bidirectional movements. Without adequate modernization, the grid becomes the bottleneck limiting clean energy deployment regardless of available green energy generation capacity.

Grid digitalization could address this challenge by extending monitoring, control, and automation capabilities from high-voltage transmission networks down to medium-voltage and low-voltage distribution systems. High-voltage networks already operate with extensive digital oversight and real-time control, but medium and low-voltage grids lag significantly behind despite handling the complexity of distributed resources.

Intelligent data infrastructure that scales monitoring points across distribution networks from thousands to millions could close this gap, Guerrero says.

Medium-voltage grids show wide variation in digital capabilities across regions. Gridspertise develops automation systems for secondary substations that can locate faults, isolate problems, and restore service in under one second through decentralized processing at network edges.

This distributed intelligence keeps systems running during extreme weather when traditional communication channels fail. Italy recently passed regulations dropping the threshold requiring renewable installations to provide grid operators with monitoring and control access from one megawatt down to 100 kilowatts.

Low-voltage networks present the greatest complexity since this is where the energy transition directly touches homes and businesses, yet digital maturity remains lowest here. Smart meters have been widely installed but primarily serve billing functions rather than grid management. These devices can provide immediate outage detection and consumption pattern analysis that helps operators understand how electric vehicles and rooftop solar affect local networks.

Gridspertise’s ERALIS platform integrates metering data with grid management to turn sensor information into operational intelligence.

Although managing an increasingly electrified economy based on distributed renewable sources will require more observability, control, automation, and intelligence than current systems provide, Guerrero says, the technologies needed for such an endeavor already exist and can deploy at scale.

The emphasis on using cutting-edge technologies in low-voltage settings to ensure smooth integration of renewable energy is also illustrated by the successes that firms like GeoSolar Technologies Inc. are seeing in their efforts to make more homes switch to renewables.

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