As electric utilities transition toward net-zero, they must address challenges posed by intermittent renewables and increased electrification. This whitepaper proposes digital flexibility—enabled by IoT, AI/ML, edge computing, and data management—as a scalable, cost-effective alternative to grid hardening. By adopting local flexibility markets and digital platforms, DSOs can manage congestion, forecast demand, control assets, and streamline settlements. The paper outlines design models, essential digital capabilities, and case-driven strategies to help utilities modernize operations and seize a historic opportunity for transformation.

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