The European power system is undergoing the most profound transformation in its history. At the same time, we are facing accelerated electrification, rapid growth of renewable energy sources, and increasingly unpredictable climate conditions, while global security and geopolitical pressures continue to intensify. In such an environment, digitalization is no longer an option—it has become the foundation for system stability, resilience, and successful energy decarbonization.
At the heart of this digital revolution lies Digital Twin (DT) technology, which is gradually becoming a key platform for both transmission system operators (TSOs) and distribution system operators (DSOs) in their operational and planning activities.
DSO Entity and ENTSO-E have jointly published a new report on TSO–DSO digital twin use cases and digital twin solutions, developed within the Joint Working Group on the Digitalization of the Energy System Action Plan (DESAP). DESAP is a joint initiative of European transmission and distribution system operators, launched to accelerate the digital transformation of the power sector. This platform brings together experts from DSOs, TSOs, and European institutions to define digitalization priorities, develop common standards, improve data exchange, and support the advancement of technological solutions—among which digital twins play a central role.
The new DESAP report, therefore, marks a turning point: for the first time, the European energy system is moving from mapping challenges to defining concrete actions and practical use cases for DT technologies.
What Is a Digital Twin?
A digital twin is a dynamic virtual equivalent of a physical system, process, or asset within the power grid. Unlike conventional simulations, it is continuously connected to its physical counterpart through real-time data exchange, enabling it to reflect the system’s actual state, respond to changes, and serve as a living model for advanced analysis, forecasting, and optimization.
Within the European power system, digital twins are becoming a key technology for both transmission and distribution operators. By integrating data from smart meters, sensors, and field inspections, digital models are continuously updated and support decision-making—from predicting issues and simulating scenarios to optimizing operations and planning the entire asset lifecycle.
Digital twins can be local, focusing on individual assets, or integrated to encompass entire networks. Although large-scale integration remains largely at the conceptual stage, the objective is to develop an interconnected ecosystem of digital twins across different organizations, operating under shared standards and governance frameworks.
Why Digitalization Is Essential
The European power sector is undergoing profound changes driven by decarbonization, the growth of renewable energy sources, and increased consumer engagement. Digital twins are becoming essential in this context, as they provide enhanced system visibility, advanced predictive analytics, and the interoperability required for stable and efficient networks.
At the same time, power systems are facing challenges such as the large-scale integration of distributed energy resources, electrification of transport and heating, climate change, geopolitical instability, and cybersecurity risks. For these reasons, digital twins represent a cornerstone of a resilient and flexible energy system of the future.
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Existing Initiatives and the Need for Coordination
The development of digital twins in Europe does not start from scratch—numerous initiatives and research projects are already underway. It is therefore important to clearly map the existing landscape to avoid duplicating efforts and to define the areas where digital twins can deliver the greatest added value.
An important component of the future digital infrastructure is the concept of data spaces. These enable data exchange between organizations while ensuring trust, security, and data sovereignty. Although they are not digital twins themselves, they provide the essential foundation for scalable and interoperable DT solutions.
Currently, several initiatives in the European energy sector are developing data space concepts, all aimed at enhancing secure, efficient data exchange among stakeholders. While their importance has already been recognized, these platforms still face the challenge of evolving into fully industrial-grade, robust systems with clearly defined technical standards, governance models, financial sustainability mechanisms, and accountability frameworks.
One of the leading initiatives is EDDIE, a pan-European open-source infrastructure that enables service providers to more easily integrate and access distributed data from households, distributed generation sources, and consumption data. In doing so, it creates the preconditions for cross-border energy services and cost-effective innovation.
OMEGA-X represents another significant example—a federated, multi-vector marketplace for data and services that simultaneously covers electricity, gas, and heat. It supports distribution and transmission operators, small and medium-sized enterprises, and large energy systems through standardized data exchange and multi-vector flexibility solutions.
The SYNERGIES project is developing a reference energy ecosystem focused on prosumers, network operators, and cross-sector use cases. It integrates building data, mobility data, smart metering information, and operational datasets to enable advanced flexibility services and coordination between TSOs and DSOs.
DATA CELLAR is an initiative designed for local energy communities that integrates smart metering data, meteorological information, and consumption, production, and price data into a unified, federated system. It also incorporates AI-based tools and incentive models to enable communities to develop their own energy services and participate in the market sustainably.
The ENERSHARE initiative demonstrates in practice how energy data spaces can support operational grid management, flexible services in mobility and electric-vehicle integration, and the participation of infrastructure from other sectors, such as water systems—all within secure, standardized, and sovereign data exchange frameworks.
The particularly ambitious INSIEME project goes beyond existing solutions. Its goal is to connect fragmented platforms into a unified Common European Energy Data Space (CEEDS) based on a federated architecture. Acting as an “integrator of integrators,” INSIEME develops key CEEDS components and implements them through numerous use cases and pilot projects across at least 16 countries. It covers a wide range of domains—from energy efficiency, flexibility management, and collective self-consumption, to grid services, electromobility, renewable integration, and sector coupling. More than 60 partners are involved, including DSOs, TSOs, agencies, universities, startups, and leading energy companies.
TwinEU is a key strategic investment by the European Union to develop a pan-European digital twin architecture for the power grid. Rather than pursuing a single, centralized digital twin model, TwinEU adopts a federated approach that connects multiple local digital twins into a coherent European system. This strategy is being tested through eight large-scale pilot projects involving transmission and distribution operators, market operators, and technology providers.
Although each pilot addresses specific local and regional priorities, collectively they contribute to the development of pan-European scenarios and a unified vision of the digitalized grid of the future. For digital twins to become a functional part of the power ecosystem, operators must define clear integration requirements that align with their systems and operational needs. In this way, pilot projects can evolve into a stable and interoperable digital environment operating at the European level.
Prepared by Milena Maglovski
The story was published in Energy portal Magazine DIGITALIZATION
