DIGITAL TRANSFORMATION OF THE EUROPEAN ENERGY SECTOR: CHALLENGES OF SUSTAINABLE DEVELOPMENT DURING THE GEOPOLITICAL CRISIS
Abstract
The article provides a comprehensive study of the peculiarities of the digital transformation of the European Union's energy sector amid a prolonged geopolitical crisis caused by Russia's aggression against Ukraine, growing global competition in strategic technologies, and trade confrontation between the US and China. The relevance of the topic is heightened by the need to synchronize the goals of climate neutrality, digital sovereignty, and energy security against the backdrop of external infrastructure vulnerability. The aim of the study is to identify the peculiarities of the digital transformation of the European energy sector in the context of the geopolitical crisis, taking into account the goals of sustainable development. The article analyzes key digital technologies (Smart Grids, AI, IoT, Blockchain, digital twins) used in the generation, transmission, distribution, and management of energy flows. It shows that these tools create the potential for sustainable development by increasing energy efficiency, integrating renewable energy sources, and improving the transparency of energy transactions. Based on verified statistical data, the dynamics of the implementation of digital solutions in leading countries around the world are presented and the growing role of OECD countries, in particular the US, in the field of AI and IoT for energy is identified. At the same time, the risks of geo-economic competition are outlined, in particular the dominance of Chinese state investors in the EU's energy infrastructure in the 2010s. Particular attention is paid to the analysis of the EU's regulatory response to new challenges, in particular the adoption of Regulation (EU) 2019/452, the EU Industrial Strategy, and the launch of the Global Gateway and NDICI initiatives. The author offers his interpretation of the digital transformation of energy as not only a technological but also a geostrategic process. He concludes that digitalization must be combined with ensuring cyber resilience and coordinating foreign economic policy within the EU.
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