New IRENA report for G7 policymakers shows how digitalisation can cut costs, enhance reliability and strengthen power systems worldwide

Abu Dhabi, United Arab Emirates / Toronto, Canada, 30 October 2025 – Digitalisation and artificial intelligence-based applications are becoming gamechangers for the energy transition. They cut electricity costs for end-users, increase energy security, improve business performance, and help integrate low-cost renewables, according to a new report.

Digitalisation and AI for Power Systems Transformation: Perspectives for the G7 explores how Artificial Intelligence (AI) and enhanced applications such as forecasting or automated grid operations can create value across the power system. The report was published today by the International Renewable Energy Agency (IRENA) at the request of the Canadian G7 Presidency, during the G7 Energy and Environment Ministers’ Meeting taking place from 30-31 October in Toronto, Canada.

The analysis intends to guide G7 countries via five value clusters: monitoring, forecasting, operational optimisation, end-use automation, and transparency to address the global power systems transformation. It builds on close cooperation with emerging and developing economies (EMDEs) and highlights advantages for energy access and socioeconomic development in EMDEs, where modernised grids and targeted investment can unlock vast opportunities.

The report recommends G7 policymakers to:

• Perform benefits-oriented assessment of power systems to guide policy and investment decisions
• Strengthen data systems and interoperability, with focus on regional networks and cybersecurity
• Address the digital skills gap across sectors to ensure workforce is ready for energy transition
• Boost energy planning to mobilise investment, particularly in EMDEs
• Enhance the cooperation between energy, digital and public sector to accelerate and manage power system transformation