Inside the Radical Digital Drive Set to Slash Emissions and Costs Across Eastern Europe’s Ageing Energy Grid
UNECE forecasts show that bold digital moves could cut emissions by 70% and energy costs by 80% in Eastern Europe by 2030. Here’s how.
- $150 billion investment needed to modernize regional energy systems by 2030
- 70% potential reduction in carbon emissions with full digital integration
- 80% possible drop in energy costs via system optimization
- Over 60% of current energy generation relies on gas and coal
A tidal wave of digital transformation is set to sweep through South-Eastern and Eastern Europe, the Caucasus, and Central Asia. According to the latest research from UNECE, integrating advanced technologies with renewables could redefine energy for millions—if leaders harness the right strategy by 2030.
Outdated Soviet-era infrastructures, dependency on fossil fuels, and a shortage of skilled tech professionals still grip countries like Belarus, Georgia, Ukraine, and North Macedonia. Yet, a historic opportunity is at hand.
Smart grids, Artificial Intelligence, digital twins, and virtual power plants are reshaping global energy—to such an extent they could slash regional emissions by up to 70%, and simultaneously drop energy costs 80% in optimized systems. With wind and solar installations lagging, experts urge an all-out sprint toward digitalization and modernization—before the investment window closes.
Why Is Digitalization Crucial in the Energy Transition?
The answer lies in flexibility and intelligence. Smart digital solutions enable countries to manage the fluctuating inputs from renewables like solar and wind while mitigating waste from ageing coal and gas plants. AI-driven platforms can predict consumption patterns, adapt output, and even prevent grid failures in real-time.
New digital twins recreate entire power systems virtually, exposing vulnerabilities and simulating fixes—without shutting anything down. Internet of Things (IoT) sensors continuously monitor every meter of the grid, flagging breakdowns before they cause blackouts or dangerous spikes in emissions.
What’s Holding Energy Transformation Back in 2025?
Legacy infrastructure is a massive hurdle. Much of the region’s power hardware dates back over 30 years, making maintenance expensive and losses rampant. Georgia, for example, loses 12% of its electricity simply in transmission. Belarus’s thermal plants drain both budgets and the atmosphere.
Energy insecurity compounds the challenge: Moldova still imports 70% of its electricity, mainly from Romania and Ukraine. Belarus relies on Russian gas for half its needs. Financial shortfalls stall progress—Albania has only partially funded $300 million in proposed solar and wind projects, while Belarus has secured just 5% of necessary renewables investment.
Meanwhile, only 70% of energy workers in Georgia are formally trained in renewables, leaving a knowledge gap as the sector evolves.
How Can Countries Overcome Investment and Skill Gaps?
The UNDP and UNECE stress ramping up support for research, professional training, and cross-border cooperation. Strategic planning will focus on three critical pillars:
- Retrofitting for efficiency—using digital upgrades to optimize old infrastructure
- Hybrid energy models—combining gas and renewable hydrogen to balance grids
- Smart grid integration—adopting uniform standards and synchronizing networks across borders
Bold infrastructure projects, including high-voltage direct current links like the Trans-Caspian corridor, could supercharge regional energy trade and connectivity. But financial innovation and public-private partnerships are still desperately needed to unlock the estimated $150 billion required.
What About Health, Climate, and Equity?
The stakes go far beyond economics. Belarus’s energy sector alone dumps 8 million tonnes of CO2 every year. North Macedonia’s coal dependence drives Europe’s worst air pollution. Cleaner power isn’t only about decarbonization—it’s about healthier cities and future-proof jobs.
UNECE’s human-centered approach demands that digital progress doesn’t leave people behind. Social protections, upskilling programs, and ethical governance must be woven into every investment.
How to Make the Leap: 2025 Action Plan Checklist
Governments, investors, and energy leaders gathered virtually and on-site in Minsk in May 2025 to set the blueprint for action. Their recommendations:
Take action now. Is your country or business ready for the digital energy revolution?
Energy Transformation Checklist:
- Audit infrastructure age and losses
- Pilot digital twins and IoT for real-time monitoring
- Secure funding for renewables and smart grid pilot projects
- Launch targeted training to upskill workforce in RE and AI
- Push cross-border collaboration and standardization
- Center policy on equity, sustainability, and climate
For more information, explore UNECE’s work on energy efficiency and dive into the latest global energy trends via the International Energy Agency.
The path to a cleaner, cheaper, and smarter energy era starts now—will Eastern Europe lead the charge?