European utilities speed up digital transformation

PEX Network’s key takeaways:

• European power and utilities companies are accelerating digital transformation to modernize grids, advance decarbonization, and expand digital capabilities.
• Companies are boosting investment in analytics and artificial intelligence (AI) to comply with tightening clean energy regulations.
• Power companies face growing challenges from the intermittency of wind and solar energy, complicating real-time supply-demand balancing and grid stability.

European power and utilities companies are accelerating digital transformation to achieve grid modernization, decarbonization, and digitalization, according to a new research report from Information Services Group (ISG).

The 2025 ISG Provider Lens® Power and Utilities Industry – Services and Solutions report found that firms are increasing investment in advanced analytics and AI-enabled operations in response to stricter clean energy regulations and decarbonization targets.

The report also explores other trends in the European power and utilities industry, including growing workforce shortages in digital and engineering and the increasing use of innovative financing models to fund large-scale grid and generation investments.

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European utilities boost digital transformation

Power companies face growing challenges from the intermittency of wind and solar energy, complicating real-time supply–demand balancing and grid stability. To address this, utilities are adopting more flexible, data-driven IT and operational systems, while technology providers modernize grids and integrate IT and operations using analytics and AI to improve forecasting, coordination, and investment planning.

Utilities across Europe are placing a greater emphasis on modernizing their transmission and distribution networks and digitalizing grid operations to enhance resilience and add renewable energy sources. They are upgrading assets and making IT and operational systems more data-driven to enhance system visibility and improve maintenance planning and control. 

“Enterprises are moving beyond commodity electricity procurement to pursue new, value-driven revenue models,” said Julien Escribe, partner and managing director of SEMEA for ISG. “By partnering on demand response, storage, and grid-interactive platforms, they gain flexibility and reduce risk.”

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Decarbonization planning becomes more structured and investment-driven

Decarbonization planning is becoming more structured and investment-driven as energy companies prepare for long-term shifts in generation, storage, and network design, according to ISG’s report.

Enterprises are turning to consulting and structured planning to guide technology choices, investment priorities, and risk management. Providers support decisions on grid reinforcement, battery storage, and distributed generation, while helping utilities adopt new operating and commercial models such as energy-as-a-service, capacity platforms, and hybrid microgrids to improve regional resilience.

“Grid investment remains the top priority for European utilities as networks adapt to higher renewable penetration and electrification,” said Harish B., principal analyst at ISG Research and lead author of the report. “Modular and scalable grid architectures are coming online to integrate new connections and deliver the flexibility needed for transport, heating, and industrial growth.”

The report evaluates 39 providers across four quadrants: enterprise asset management, process and customer experience management, smart metering and grid modernization, and technology, transformation, and consulting. It named Accenture, Capgemini, Cognizant, Deloitte, IBM, Infosys, NTT DATA, TCS, and Wipro as leaders in four quadrants each.

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