Digitalisation and AI for power system transformation: Perspectives for the G7

Digital solutions are reshaping the future of power systems. This IRENA report, developed in collaboration with the Canadian G7 Presidency, explores how digitalisation and artificial intelligence (AI) can accelerate the energy transition by enhancing reliability, affordability, and sustainability. With electricity expected to power over half of global energy use by 2050, digital innovation is no longer optional, it is essential.

The report introduces a value-cluster framework – comprising monitoring, forecasting, operational optimisation, end-use automation and transparency – to assess the benefits of digital solutions across the power system. It maps the effectiveness of digitalisation and AI use cases in delivering tangible benefits, including reduced electricity costs, improved security of supply, greater integration of renewables, added value for the end users and improved business performance. It illustrates this approach with specific examples and provides actionable recommendations for G7 and global stakeholders. These include improving data governance, strengthening digital skills, and integrating digitalisation into long-term energy planning and climate strategies.

By aligning policy, investment and workforce development, digital solutions can unlock transformative benefits for the international community and especially in emerging markets and developing economies, while supporting energy access, resilience and prosperity for all.