Unlocking digital innovation in the electricity system

2026

Open publication workspace · Sign in to read the full PDF.

AI-generated summary

This OECD Digital Economy Paper explores how digital innovations and artificial intelligence are reshaping electricity systems amidst rising energy demands and distributed generation sources, while examining trends in public funding and offering policy considerations to sustain digital transformation.

• Patents in AI-based electricity applications increased more than fourfold between 2017 and 2022, while patenting activity related to electric vehicles and flexible demand showed significant growth.
• Despite resilient overall public energy research, development and demonstration (RD&D) budgets, the share directed to digital innovations in electricity systems declined from 0.38 percent in 2021 to 0.31 percent in 2024.
• Policy tools such as regulatory sandboxes, multistakeholder data standards, and enhanced consumer data access are vital for fostering digital innovation and supporting decentralized energy business models.
• Connected sensors, phasor measurement units, and AI-driven forecasting improve control, reliability, and fault management across electricity generation, transmission, and distribution systems.

Check the original publication for accuracy and context.