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Digitalization is a megatrend that affects and transforms societal, economic, and environmental processes on a global scale. Driven by a combination of technological advances as well as shifting societal demands, digitalization also affects the operation and planning of the electricity sector. This paper uses megatrend analysis framework to analyze digitalization phenomena, its regional differences, technologies, use cases and challenges. It highlights potential system-level benefits (e.g., increased efficiency, transparency, consumer participation) and challenges (e.g., electricity demand growth, autonomy loss, increasing cyber risks) currently reported in the literature. Eventually, building on the thorough analysis, we present a menu of policy options to exploit its full potential of digitalized electricity systems while mitigating adverse effects on decarbonization goals and consumers. • New digital technologies and business models are changing the electricity sector. • Consequences and progression of digitalization are not homogeneous between nations. • Progress depends on ICT infrastructure, funding, economy, skills, policy/regulation. • Policies addressing opportunities and challenges of the transition are needed. • Electricity system transformation needs systematic, but contextual approach. [ABSTRACT FROM AUTHOR]

Electricity systems are critical infrastructure. With increasing digitalization, they become particularly vulnerable to cyberattacks. Cybersecurity hence becomes increasingly crucial for the security of supply. Based on a detailed analysis of the status of cybersecurity in the Swiss electricity sector, we derive a set of policy recommendations on how to raise countries' cybersecurity levels in electricity systems. The analysis builds on a national E-survey that solicited self-assessment of cybersecurity maturity levels of 124 Swiss energy market participants. It was complemented by a detailed, comparative analysis of cybersecurity measures in Switzerland and its surrounding European neighbors. On average, we found a cybersecurity maturity that needs to be ameliorated regarding information and operation technology in the Swiss electricity sector. This situation calls for improved regulatory measures and monitoring to stimulate cyber resilience among market participants. • Analysis of cyber security maturity levels of 124 Swiss electricity market participants. • Overall low maturity levels for network operators, producers and metering operators. • Lack of established roles and responsibilities resulted in lowest maturity levels. • Potential measures include mandatory minimum standards and notification schemes. • Further improvements through continuous testing (incl. penetration tests). [ABSTRACT FROM AUTHOR]