Harnessing Digitalisation and AI for Transforming Global Power Systems at G7 Summit
The recent G7 Energy and Environment Ministers' Meeting in Toronto, held on October 30-31, 2025, marked a significant milestone in the pursuit of energy transformation globally. At this pivotal gathering, the International Renewable Energy Agency (IRENA) unveiled a comprehensive report titled "Digitalisation and AI for Power Systems Transformation Perspectives for the G7." This analysis aims to utilize the latest advancements in digital technologies and artificial intelligence (AI) to enhance power systems, emphasizing the importance of digitalisation in the energy sector.
Digitalisation has emerged as a transformative force in energy markets, helping to optimize operations and enhance the overall efficiency of power systems. According to the IRENA report, integrating these technologies is not only a game-changer for energy transition but also crucial for reducing electricity costs, boosting energy security, and supporting seamless integration of low-cost renewable energy sources. The findings showcase how AI applications—ranging from innovative forecasting to automated grid operations—can substantially increase operational efficiency across power infrastructures.
The report categorizes its insights into five value clusters: monitoring, forecasting, operational optimization, end-use automation, and transparency. Each of these clusters holds immense potential for G7 policymakers as they navigate global power system reforms. Some of the critical recommendations include:
1. Execute benefits-oriented assessments of power systems to inform legislative and investment choices.
2. Improve data handling and system interoperability, prioritizing regional networks alongside cybersecurity measures.
3. Address the skills gap in the workforce across industries, ensuring readiness for an evolving energy landscape.
4. Bolster energy planning strategies to incentivize investment, particularly in emerging and developing markets (EMDEs).
5. Foster collaborations between energy sectors, digital innovation fields, and the public sphere to expedite and effectively manage the transition of power systems.
The Honourable Tim Hodgson, Canada’s Minister of Energy and Natural Resources, praised the IRENA report, stating, "The integration of digital technologies is transforming our energy systems, driving demand for electricity while increasing efficiency. Empowering our energy sector to leverage these digital innovations is essential for enhancing its security, accountability, and competitiveness. Our collaboration with IRENA on this significant assessment underscores Canada’s commitments toward energy security and innovation, especially evident at the G7 Energy and Environment Ministers' Meeting."
Francesco La Camera, the Director-General of IRENA, added, "With preliminary data indicating that global renewable energy records are set to be broken this year, the necessity for stable, affordable, and secure electricity systems is paramount as we approach 2050. The G7 has the opportunity to spearhead initiatives that promote digital solutions—streamlining costs, improving efficiency, and resilience of power systems. The potential for growth is tremendous, and with enhanced collaboration, we can create robust opportunities for all economies."
Modernizing power systems is not solely about technological advances; it requires a deliberate strategy for digital adoption as part of the design process for energy frameworks and infrastructure. As the proportion of electricity in the total final energy consumption is predicted to reach more than half by 2050, according to IRENA's outlook, the need for digital solutions to safeguard reliability while keeping costs in check is crucial. A comprehensive shift towards integrating digital tools will be necessary to balance the demands of variable energy resources and increasingly decentralized grid structures.
The report advocates for an overarching approach to digitalisation, unifying financial incentives, regulatory frameworks, and workforce skill development to foster innovation and ensure fair access to new technologies across the board. As we look towards modernized and expanded electricity systems, it is clear that embracing digital innovations is vital to navigate the complexities of future energy demands.
This decisive moment at the G7 presents a unique chance to catalyze a global commitment to harnessing digitalization and AI effectively, creating a sustainable energy future for generations to come.
The Significance of Digitalisation and AI
Digitalisation has emerged as a transformative force in energy markets, helping to optimize operations and enhance the overall efficiency of power systems. According to the IRENA report, integrating these technologies is not only a game-changer for energy transition but also crucial for reducing electricity costs, boosting energy security, and supporting seamless integration of low-cost renewable energy sources. The findings showcase how AI applications—ranging from innovative forecasting to automated grid operations—can substantially increase operational efficiency across power infrastructures.
Key Findings and Recommendations
The report categorizes its insights into five value clusters: monitoring, forecasting, operational optimization, end-use automation, and transparency. Each of these clusters holds immense potential for G7 policymakers as they navigate global power system reforms. Some of the critical recommendations include:
1. Execute benefits-oriented assessments of power systems to inform legislative and investment choices.
2. Improve data handling and system interoperability, prioritizing regional networks alongside cybersecurity measures.
3. Address the skills gap in the workforce across industries, ensuring readiness for an evolving energy landscape.
4. Bolster energy planning strategies to incentivize investment, particularly in emerging and developing markets (EMDEs).
5. Foster collaborations between energy sectors, digital innovation fields, and the public sphere to expedite and effectively manage the transition of power systems.
Insights from Key Stakeholders
The Honourable Tim Hodgson, Canada’s Minister of Energy and Natural Resources, praised the IRENA report, stating, "The integration of digital technologies is transforming our energy systems, driving demand for electricity while increasing efficiency. Empowering our energy sector to leverage these digital innovations is essential for enhancing its security, accountability, and competitiveness. Our collaboration with IRENA on this significant assessment underscores Canada’s commitments toward energy security and innovation, especially evident at the G7 Energy and Environment Ministers' Meeting."
Francesco La Camera, the Director-General of IRENA, added, "With preliminary data indicating that global renewable energy records are set to be broken this year, the necessity for stable, affordable, and secure electricity systems is paramount as we approach 2050. The G7 has the opportunity to spearhead initiatives that promote digital solutions—streamlining costs, improving efficiency, and resilience of power systems. The potential for growth is tremendous, and with enhanced collaboration, we can create robust opportunities for all economies."
The Vital Role of Digital Solutions
Modernizing power systems is not solely about technological advances; it requires a deliberate strategy for digital adoption as part of the design process for energy frameworks and infrastructure. As the proportion of electricity in the total final energy consumption is predicted to reach more than half by 2050, according to IRENA's outlook, the need for digital solutions to safeguard reliability while keeping costs in check is crucial. A comprehensive shift towards integrating digital tools will be necessary to balance the demands of variable energy resources and increasingly decentralized grid structures.
The report advocates for an overarching approach to digitalisation, unifying financial incentives, regulatory frameworks, and workforce skill development to foster innovation and ensure fair access to new technologies across the board. As we look towards modernized and expanded electricity systems, it is clear that embracing digital innovations is vital to navigate the complexities of future energy demands.
This decisive moment at the G7 presents a unique chance to catalyze a global commitment to harnessing digitalization and AI effectively, creating a sustainable energy future for generations to come.
Topics Energy）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.