Smart grids: impacts and challenges on energy sector

Digitalization, driven by the transformative impact of digital technologies, plays a crucial role in the energy transition process. Advancements in these technologies are bringing about significant changes in how energy is generated, transmitted, and utilized. In particular, digital technologies enable modern smart grids to optimize energy management by integrating renewable energy sources more effectively. In this context, the paper explores the effects of smart grids on the energy transition, emphasizing their benefits and the key incentives that promote investment. Additionally, it reviews current trends in smart grid development across European countries, with a specific focus on Italy. The objective is to provide a comprehensive overview of the investments required to implement both existing and new smart grid projects.