A recent study conducted by the United Nations Economic Commission for Europe (UNECE) has highlighted that an estimated investment of $150bn is needed by 2030 to facilitate the clean energy transition in south-eastern and eastern Europe, the Caucasus and Central Asia (SEECCA).
The shift towards clean energy in these areas represents a significant challenge that requires a complete transformation of existing power systems.
However, the study suggests that by adopting digital technologies and innovations such as AI, the Internet of Things (IoT), digital twins and virtual power plants, across all aspects of the energy sector, these regions have the potential to achieve a 70% reduction in carbon emissions and an 80% reduction in energy costs, contingent on system-wide optimisation.
The UNECE study titled ‘Integrating twin transition with legacy energy systems’ also underscores the opportunity to refine existing systems, bolstering both cybersecurity measures and the robustness of the energy grid.
The research analyses the current state of energy systems in countries such as Albania, Belarus, Georgia, Kyrgyzstan, North Macedonia, Republic of Moldova and Ukraine. These nations currently rely on natural gas and coal for around 60% of their energy mix.
The study emphasises the need for robust policy measures and investment in advanced, resilient grids to achieve this transformation.
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By GlobalDataIt also calls for increased support for innovation and research, strategic planning, and extensive professional training to address the challenges of ageing infrastructure, energy security risks, regulatory barriers, limited financial resources and the lack of a skilled workforce.
The study outlines several strategies around energy efficiency and sustainability, such as IoT-enabled retrofitting of buildings and industries, the use of natural gas as a transitional fuel with hydrogen-ready infrastructure and AI-based management systems, and the importance of cross-border infrastructure projects.
It also stresses the need for strengthened international collaboration and capacity-building.
Three priority action areas have been identified in the report: scaling energy efficiency through digital technology retrofitting; promoting hybrid energy models combining gas with hydrogen; and advancing smart grids and regional integration.
The study advocates for a human-centred approach to digitalisation that prioritises equity, social considerations and long-term sustainability.
The study was showcased at a workshop in Minsk, Belarus, on 22 May 2025.
Organised by UNECE in cooperation with UNDP Belarus and the Department of Energy Efficiency of the State Committee for Standardization of the Republic of Belarus, the workshop aimed to assess the readiness of the energy sector to implement smart, digital, energy-efficient technologies in the context of climate change mitigation.
