Smart grids, AI, and resilient networks: The role of the power grid

The energy transition doesn't just depend on how much renewable energy we install and store; it depends on the electrical grid that must receive, manage, and distribute this energy to consumers. In Italy, the challenge is enormous, and the distribution network—the one connecting millions of end-users—is becoming increasingly central to the new energy paradigm. Without a modern, digital, and resilient grid, the integration of renewables and the electrification of consumption risk slowing down or creating system inefficiencies.

The grid: from passive infrastructure to active system

For decades, the electrical system was characterized by large thermoelectric power plants that produced energy predictably and fed it into the grid following a unidirectional flow toward consumers. Today, the situation is completely different. With the rise of renewable sources—wind and solar—production is widespread, variable, and much more decentralized across the territory.

This involves two profound transformations:

1. Distributed Production: generation is no longer concentrated but distributed, often directly by consumers who become prosumers—consumers who also produce energy (for example, through domestic solar panels).
2. Bidirectional Flow: generation is no longer one-way; the grid must be able to manage two-way flows of energy, integrating variable production and user demand in real time.

In Italy, there are now approximately 2 million prosumers, 1.8 million of whom are connected to the e-distribuzione network. In 2024 alone, 280,000 new prosumers were added, totaling 5.1 GW of connected power. This is a clear signal of a system that no longer just "transports" energy but actively governs it.

Investing in the grid: what changes in three years

To respond to this complexity, two levers are needed simultaneously: infrastructure investment (physical strengthening) and a major leap in digital management (or "smart" capabilities). The Italian grid managed by e-Distribuzione—an Enel Group company and the country's main electricity distributor—spans over 1.2 million kilometers, with about 450,000 secondary substations and 2,500 primary substations and satellite centers.

Innovation strategies are built upon this operational base. In the 2025-2027 Industrial Plan, the Group, led by Flavio Cattaneo, allocates €26 billion to its Grids business. Of this, €16 billion (62%) is destined for the Italian distribution network. The planned spending covers:

• Infrastructure development: €11 billion
• Customer connections: €3.5 billion
• Maintenance: €2 billion

A significant portion of these funds—over €5.3 billion—is dedicated to the electrification of consumption, while €1.2 billion goes toward increasing "hosting capacity" (the grid's ability to integrate larger amounts of renewable energy without compromising system stability). In parallel, approximately €12 billion will be invested to digitize and strengthen infrastructure, adopting technologies such as advanced sensors, real-time monitoring systems, and Artificial Intelligence algorithms for operational optimization.

Smart grids and AI: the grid that thinks and adapts

Smart grids represent the laboratory where digital and physical technologies combine to increase system reliability, flexibility, and efficiency. Primarily, a smart grid is capable of:

• Communicating with smart meters to collect real-time consumption data.
• Modulating demand during peak moments through digital signals.
• Integrating flexibility services provided by users, prosumers, and energy aggregators.
• Automating network maneuvers to minimize service disruptions.

In cities like Genoa and Matera, digital network projects are already being tested with technologies that allow for the rapid identification and isolation of faults, reducing outage times and increasing supply quality.

Resilience and climate change

Another frontier is grid resilience against extreme climate events. Climate change is increasing the frequency and intensity of adverse weather events, which put stress on the entire distribution infrastructure. In 2022, extreme events increased by nearly 20% compared to the decade average, and Italy leads Europe in climate-related economic losses per capita.

Consequently, a specific Resilience Plan has been defined, with approximately €3 billion allocated to strengthening structures and technologies to cope with more demanding operating conditions.

The energy transition is a game played as much on renewable sources as it is on the intelligent networks that connect them to millions of users. Digitalization, AI, and infrastructure investments in an increasingly resilient grid are the foundation for transforming the energy of the future into a secure, efficient, and sustainable system.

This article is also published on Il Tempo, in Italian. illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.