Exploring and Overcoming Challenges for Digital Transformation in the Energy Sector Toward Carbon Neutrality

ABSTRACT China is committed to carbon neutral by 2060 to reduce its carbon footprint to zero. This research investigates the challenges surrounding the adoption of digitalisation in the energy sector and proposes policy plans to overcome them to achieve sustainability goals. This study utilised the fuzzy Analytical Hierarchy Process (AHP) method to assess the key challenges and sub‐challenges. Next, the fuzzy Technique for Order of Preference by Similarity to the Ideal Solution (TOPSIS) method is used to rank the policy plans to overcome the challenges for digital transformation in the energy sector toward carbon neutrality in China. The result of fuzzy AHP identified that financial constraints (DES1) is the most crucial challenge hindering digitalisation efforts with a weight of 0.172, followed by operational and management barriers (DES8) with a weight of 0.156, and regulatory and policy challenges (DES2) with a weight of 0.144. Next, the findings of fuzzy TOPSIS revealed that enhancing financial viability and investment (PP2) has obtained the first rank plan with a score of 0.065, following fostering regulatory support and policy development (PP3) with a score of 0.063 and building public trust and engagement (PP10) with a score of 0.060. These policy plans play a crucial role in addressing the challenges associated with adopting digitalisation in China's energy sector, toward a more efficient, sustainable and resilient energy transition.