Last Updated on 4. December 2025
This article first appeared on the blog of the Renewable Energy Hamburg cluster.
The digitalisation of the energy industry is no longer an option, but a basic requirement for security of supply, climate targets and economic competitiveness. However, many companies underestimate the fact that the central force behind this transformation is regulation. It sets the pace, defines standards and forces companies to rethink IT architectures, data flows and processes. Those who see it only as an obligation will lose out. Those who use it strategically will win.
Drivers of digitalisation: technology, the market – and above all, regulation
Technology and customer expectations are powerful drivers, but it is regulatory guidelines that make digitalisation mandatory across the board.
Technology
Smart grids, sensor technology, AI, platforms and the cloud enable real-time control, flexibility and automated processes – crucial in a system full of PV, heat pumps, e-mobility and storage.
Market & customer expectations
Prosumer models, dynamic tariffs and digital energy providers are putting pressure on established utilities.
Customers expect app logic, transparency and simple services.
Regulation as a decisive pacemaker
The Energy Industry Act (EnWG), Renewable Energy Sources Act (EEG), Metering Point Operation Act (MsbG), EU requirements and BSI standards are forcing digitalisation – through obligations, deadlines and minimum requirements. Without this pressure, many IT and data investments would have been implemented much more slowly.
Regulation as the architect of digitalisation: the most important frameworks
The current wave of regulation acts as a master plan for a digitally networked energy world.
EnWG – digitalisation in grid operation
The Energy Industry Act anchors digital grid connections, energy sharing, better integration of decentralised systems and data-driven grid planning.
MsbG – The driver of digitalisation at the customer interface
Mandatory installation of smart metering systems, control boxes and secure communication. From 2025, remote control will be mandatory for certain power classes.
EEG, KWKG & Redispatch 2.0 – Not feasible without digitalisation
Feed-in management, redispatch, flexibility utilisation and data provision only work digitally – and create interfaces, data streams and automation requirements.
EU Data Act – The coming game changer
It establishes clear rules for data access and data portability – making data mandatorily shareable for the first time. For energy companies, this means:
- new business models through data access,
- greater transparency for customers,
- adaptation of data architectures and governance.
Energy Data Spaces / DATA4Energy
EU initiatives are driving forward interoperable data spaces. This will bring network operators, MSBs, utilities and new platform providers closer together.
AI Act – Regulation for automated forecasting and control
The EU AI Act affects many core functions of the energy industry: load forecasting, grid simulations, automated dispatch decisions, customer interaction. Companies must establish risk assessments, documentation and governance structures.
NIS2 and KRITIS – Security becomes mandatory, not optional
The NIS2 Directive and national NIS2UmsuCG increase requirements for cybersecurity, identity and access management, reporting obligations, risk management and audits.
For CIOs and IT managers, this means that regulations determine timelines, functionalities and minimum standards, on the basis of which architecture, roadmaps and budgets must be planned.
How regulations are triggering the digitalisation of the energy industry in practice
Regulatory obligations trigger specific digitalisation projects – binding, time-bound and often with sanction mechanisms.
Smart meter rollout & control technology
Mandatory installations create comprehensive data and control access right down to households. This drives investment in:
- gateway administration,
- secure communication infrastructure,
- MDM systems,
- billing,
- new customer portals.
Dynamic tariffs & flexibility markets
The obligation to introduce dynamic tariffs requires real-time data processing, forecasting algorithms and digital marketing platforms.
Digital grid connections & redispatch 2.0
Mandatory digital interfaces (AS4 in MaKo) accelerate API strategies, data platforms and automation in grid operation.
From obligation to opportunity: how companies can strategically capitalise on this
Those who view regulation solely as a compliance task are falling short. Successful companies use it as a driver of growth and efficiency.
1. Regulatory foresight as a success factor for the energy industry
Early analysis of EU and federal initiatives enables better planning and prioritisation.
2. Integrating regulation into architecture and roadmaps
No isolated solutions: digital requirements should be anchored in enterprise architecture, data strategy and project portfolios.
3. Monetising data and interfaces
Regulatory-enforced data access enables new services, platform business models and a better customer experience.
4. Utilise collaborations and platforms
Shared services, platform models and standard solutions reduce the burden on municipal utilities and smaller market participants.
5. Security & privacy by design as a mandatory basis
NIS2, GDPR and BSI requirements must be consistently incorporated into architecture, operations and processes.
Where regulation slows things down – and how to manage obstacles intelligently
Despite all the advantages, there are real challenges:
- Overburdening of small players: Complex requirements overload many municipal utilities and competitors in the metering sector, as there are usually few human resources available for implementation alongside day-to-day business, and established processes and existing systems are subject to fundamental changes that can be difficult to implement.
- Detailed regulation hinders innovation: Overly restrictive requirements in the smart meter rollout can limit customer access and innovation.
- Asynchronous EU/federal/authority timing: Different deadlines, interpretations and transitional arrangements create planning uncertainty.
The solution: clear guidelines instead of micromanagement, technology-neutral requirements and noticeable simplification of processes and market roles.
Added value for companies and customers
Despite their complexity, the regulations create a clear basis for arguing in favour of investments in digitalisation. Regulation creates ‘must-haves’ from which ‘best-in-class’ solutions can be designed with the right strategy.
For companies
- Greater planning security through binding specifications.
- Better data transparency for network, plant and customer management.
- New business models based on data opened up by regulation.
For end customers
- More transparent and flexible tariffs.
- Greater security of supply through digital networks.
- Greater participation through prosumer, neighbourhood and energy sharing models.
Conclusion: Regulation is an underestimated driver of innovation
Regulation is now the central driving force behind the digital energy world. It enforces modernisation, creates data access and defines interfaces – thereby opening up space for new business models. The trick is to not just treat regulation as an obligation, but to use it strategically as a catalyst for innovation.
Energy suppliers that interpret regulation as an opportunity can increase efficiency, accelerate innovation and differentiate themselves from the competition. For CIOs, it is therefore not just a compliance task, but a strategic lever for sustainable corporate development.
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