Circular economy and sustainable business models in the energy sector: a scoping review of digital transformation, AI integration, and sustainability strategies

Abstract

The convergence of circular economy (CE) principles, digital transformation, and artificial intelligence (AI) is fundamentally reshaping the global energy sector. This paper presents a scoping review of the scholarly literature on circular economy frameworks, sustainable business models, and digital innovation strategies in the energy sector, complemented by qualitative data drawn from semi-structured interviews with 15 senior energy industry leaders. Drawing on 143 peer-reviewed sources identified across seven academic databases, the review maps the theoretical and empirical landscape of CE adoption in energy, analyses the enabling role of AI and digital technologies, and surfaces strategic pathways for sustainable business model transformation. Findings reveal that while CE principles offer substantial environmental and economic value, their operationalisation in the energy sector remains uneven, constrained by investment barriers, regulatory fragmentation, and a persistent digital skills gap. Leadership commitment, public-private collaboration, and data-driven governance emerge as the most critical enablers of successful CE transition. The paper concludes with a research agenda and practical recommendations for energy executives, policymakers, and scholars.