1. Digitalisation is crucial for Europe’s DSOs, with untapped potential remaining.
2. DSOs vary in digital maturity, with ‘data-driven’ capability showing highest maturity.
3. DSOs face challenges including regulatory hurdles, capex limits, and lack of skilled talent.
Digitalization is essential for Europe’s DSOs, with ecosystem-wide benefits, according to a report by Eurelectric. A recent assessment with Accenture found a wide range in digital maturity among DSOs, regardless of size. Data from 31 DSOs representing over 80 million customers in 21 countries was analyzed, focusing on four core capabilities: Build, Operate, Maintain, and Data-driven. Data-driven capabilities were found to have the highest maturity, with cybersecurity being a priority.
DSOs with a higher proportion of renewable energy in their mix demonstrated higher maturity in all capabilities due to increased operational complexity. Customer focus and service reliability were top digital priorities for DSOs. However, regulatory hurdles and investment limits, specifically related to smart meters, were cited as challenges. Eurelectric suggests clear regulations to support DSOs in their digital transformation efforts.
DSOs recognize the business potential of integrating OT data in IT systems but have faced implementation challenges. A balanced approach is needed between large-scale build-out and flexibility to increase capacity. National regulators are recommended to encourage digitalization investments and ensure proper compensation for DSOs. EU legislation under the green and digital transitions should be implemented consistently across sectors to avoid overlaps. Addressing the lack of skilled talent is crucial, with suggestions including formal education, skills development initiatives, and EU-wide certification recognition.