Industry 4.0: how Italy and the EU are driving the digital transformation of the sector

A new way of thinking about regulation

The concept of Industry 4.0 goes beyond the traditional view of compliance and tariffs to embrace a more strategic role. The goal is not only to ensure that services work and costs are fair, but also to guide a sector facing structural challenges: from the integration of renewable energies to adaptation to climate change, from cybersecurity to data management.

In this scenario, regulations become a driver of innovation. The European Union, through a series of directives and regulations, is laying common groundwork to ensure that digitalisation is uniform, secure and sustainability-oriented in all Member States. At the same time, Italy is defining standards, incentives and KPIs that promote the modernisation of networks and management processes.

Europe focuses on data, interoperability and security

At European level, the digital transformation of utilities is based on a number of essential pillars. One of the most significant is the Data Act, which introduces clear rules for more transparent data use and sharing. This is a key step in the evolution of smart metering and the development of new services that exploit consumption and network data in a more open and controlled way, ensuring greater portability and reducing information asymmetries between operators, customers and new technology players.

Alongside the issue of data, the EU has placed great emphasis on cybersecurity. Regulations such as the Cyber Resilience Act and the NIS2 Directive strengthen security requirements for critical infrastructure, imposing high standards for IoT devices, SCADA systems and remote control platforms. In a context where smart meters are multiplying and networks are becoming more connected, protecting data and systems is no longer an ancillary aspect, but an essential requirement of public service.

Finally, Europe is also steering technological transformation towards climate goals through the Fit for 55 package. The focus on reducing emissions, efficiency and the development of renewables requires increasingly flexible and intelligent networks capable of integrating distributed generation, energy communities and more advanced consumption dynamics.

Italy's push towards smarter networks

In Italy, the Authority has taken on an increasingly digital-oriented role in recent years. This is clearly evident in the measures that encourage investment in smart technologies: remote reading systems, advanced sensors, remotely controlled network infrastructure and digital platforms dedicated to predictive maintenance. The idea is to reward operators who invest in solutions that reduce losses, improve service continuity and optimise asset management.

One of the sectors most affected by this evolution is water, where Italy is leading a modernisation process that aims to make networks more efficient and controllable. The focus on water losses – a critical issue in Italy – has led to the definition of new monitoring and remote control obligations, also supported by investments from the PNRR (National Recovery and Resilience Plan).

The path to digitalisation is equally evident in the world of smart metering. Italy was one of the first European countries to define clear standards for the rollout of smart meters, both for gas and electricity, in many cases anticipating models that are now also adopted in other Member States. The second generation of electricity meters, as well as the evolution of gas meters, reflects an approach that no longer focuses solely on measurement but also on interoperability, data quality and the possibility of integrating advanced energy management services.

At the same time, the regulation of technical and commercial quality is becoming increasingly data-driven. Response times, emergency management, frequency of service disruptions and digital service levels are no longer based solely on self-reporting, but are measured through geolocation systems, control platforms and increasingly comprehensive datasets.

The combined effect: a concrete transformation

The interaction between European and national regulation is producing very tangible effects. Utilities are investing in smarter networks that offer greater adaptability, better service continuity and lower operating costs. Data is becoming a strategic asset: internal sharing platforms are being consolidated, predictive algorithms are being developed and more mature data governance models are becoming widespread. After years of fragmented approaches, cybersecurity is becoming a structural requirement, incorporated into the processes and budgets of every operator.

But perhaps the most obvious change concerns the end customer. Regulated digitalisation makes it possible to offer more transparent services, apps that clearly explain consumption and costs, dynamic tariffs, self-consumption tools and new forms of active participation such as energy communities. It is a change of mindset: the user goes from being a “passive consumer” to an informed and active participant.

The challenges still ahead

Of course, Industry 4.0 also brings new complexities. Greater integration between IT and OT systems requires advanced skills and organisations capable of rethinking processes that have been established for years. Companies must manage growing data sets, integrate new technologies with often outdated legacy systems, and ensure security and quality in an increasingly interconnected environment. The risk is not technological, but organisational: without a clear governance vision, digitalisation can become fragmented and ineffective.

The digital transformation of Italian and European utilities is not a spontaneous or purely technological phenomenon: it stems from a more evolved regulatory framework, which sees digitalisation as a lever for building more resilient networks, more efficient services and a more transparent relationship with citizens. Industry 4.0 is therefore much more than a set of rules: it is the strategic framework that will guide the sector for decades to come. Utilities that are able to interpret it not as an obligation but as an opportunity will be those capable of competing in a market where data, network intelligence and sustainability become decisive advantages.