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EU Unveils AI-Powered Energy Strategy to Cut Costs, Boost Grid Resilience

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The European Union on Wednesday unveiled a roadmap to accelerate the use of artificial intelligence and digital technologies across its energy sector to lower costs, strengthen grid resilience, and reduce the bloc's dependence on foreign technology, the European Commission said on Wednesday.

The initiative forms part of the EU's broader Technological Sovereignty Package. It comes as policymakers grapple with rising energy demand from digital infrastructure, elevated energy prices and growing geopolitical risks.

The Commission said digitalization and AI could play a critical role in helping Europe build a cleaner, more competitive and resilient energy system while strengthening the bloc's technological autonomy.

Under the strategy, digital solutions would enable consumers to shift electricity consumption to periods when power is cheaper, potentially reducing electricity costs across the EU by more than 71 billion euros ($82.4 billion) per year.

The savings are expected to represent a 64% reduction in electricity consumption costs, according to Commission estimates.

For industrial users, the Commission said greater digitalization could improve operational efficiency and enable companies to respond more effectively to market price signals, helping to curb energy expenses.

The EU's executive body also said AI-powered operations and maintenance systems could generate savings of up to 94 billion euros per year by 2035, while advanced digital technologies could help electricity grids better integrate renewable energy by enabling real-time monitoring, interoperability, and control.

The roadmap is built around three key pillars that aim to align Europe's digital and energy transitions, with the first step being the integration of data centers across the bloc into the energy system in a more sustainable and transparent manner.

The Commission said technological sovereignty in energy has become increasingly important as Europe's energy systems become more digitalized, exposing them to new vulnerabilities while offering significant opportunities to improve efficiency.

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