Digital technology is changing people’s lives. The EU’s digital strategy aims to make this transformation work for people and businesses, while helping to achieve its target of a climate-neutral Europe by 2050. The Commission is determined to make this Europe's “Digital Decade”. Europe must now strengthen its digital sovereignty and set standards, rather than following those of others – with a clear focus on data, technology, and infrastructure.

The European Commission supports various energy transition initiatives focusing on smart grids, energy storage and digitalisation.

Digitalisation can help integrate the growing share of renewable energy by delivering flexible electricity systems that provide demand-side solutions and energy storage.

Sector integration means linking the various energy carriers - electricity, heat, cold, gas, solid and liquid fuels - with each other and with the end-use sectors, such as buildings, transport or industry. Linking sectors will allow the optimisation of the energy system as a whole, rather than decarbonising and making separate efficiency gains in each sector independently. The new EU strategy will involve various existing and emerging technologies, processes and business models, such as ICT and digitalisation, smart grids and meters and flexibility markets.

On 9 March 2021, the European Commission presented a vision and avenues for Europe’s digital transformation by 2030. The Commission proposes a Digital Compass for the EU's digital decade that evolves around four cardinal points: skills, infrastructures, business, government.