Digital Twins for Distributed Energy Resources - Pt 2

by Alto Kemeny, Commercial Manager

Aug 15, 2025

Over the last couple of weeks we spoke about the concept of Digital Twins and how they are emerging as a transformative technology also in theenergy sector, particularly for optimizing and managing renewable energysystems and thus making them smarter, more resilient, and more efficient.  

Let’s take a more specific look at Europe’s take on Digital Twins for energy systems.

With more than a million kilometers, the EU electricity infrastructure is claimed to be the most extensive and integrated grid in the world. Considering the continuously increasing demand for electrification of final energy consumption and fast raising share of intermittent renewable energy sources there is significant need for infrastructure capacity increase and modernization, calling for various innovative solutions, including the adoption of smart grids, digitalization, and grid enhancement technologies.

The European Commission identified Digital Twin technologies as one of the strategic levers for this challenge.

Policy Integration is one important step:

The 2022 “Digitalising the Energy System” action plan describes the need for a federated digital twin of the EU electricity grid for  enhancing system intelligence and supporting real-time operations

Common European Energy Data Space (CEEDS):

Because fast, secure and interoperable data exchange is essential for digital twin functionality across borders and to reduce the complexity and cost for developing solutions CEEDS is thought to provide the supporting framework.

Evolution instead of revolution:

The  TwinEU Project Funded under Horizon Europe is a flagship initiative thought to tackle the diversity of focus areas, requirements and a very heterogeneous existing technology and market landscape to start from. It involves 75 partners across 11 countries aiming to create a federated ecosystem of digital twins—linking local grid models into a unified platform.

Different solutions approach the overall challenge from different angles, each with different effects, benefits and limitations.

It is well understood, there is not one single master solution resolving everything at once. It requires rather an ecosystem where multiple technologies provide best in bread solutions for different problems while interoperating transparently and efficiently to allow adding up the different benefits to make a much bigger impact, together, including, but not limited to:

Why Digital Twins Are the Missing Link

Digital twins don’t simplify complexity—they make it visible, understandable, and actionable. Here’s how:

Predictive maintenance

The well-known real-time asset monitoring combined with AI based prediction of fault events and maintenance need for optimizing the availability and utilization of any energy  assets is expanded to more holistic grid infrastructure management

Automated distributed energy resource integration and grid optimization

Distribution grid operators use digital twin of their distribution gridto measure and analyze grid performance with high resolution and assess new grid connection requests, their impact to the grid and optimize investments for demand driven need for grid expansion or need for more flexibility.

Congestion forecasting and management

Real-time grid observation and AI supported predictive demand and supply forecasting to allow for proactive congestion or imbalance mitigation either by proactive balancing of supply and demand cognizant of relevant grid constraints.

While grid-level initiatives are critical, it is equally important to consider the role of grid users - their needs, contributions, and the benefits they gain when working together with grid operators to build flexible and resilient energy systems of the future.

Collaboration by the grid users, consumers and producers is a key contribution to a resilient and efficient power grid. Particularly when looking at the role of DER IPPs, and bigger industrial or commercial market participants - either as Prosumers and Flexumers  - or the aggregators of many smaller ones, it becomes obvious that Digital Twin technology needs to penetrate all layers of an energy system to achieve optimal results. It is important to find a fair balance between the grid needs and the benefits for these market participants when they want to make optimal use of their options within the techno-economical value stack leveraging their flexibility in a grid friendly way.

Innovation in Action: The Enscryb Platform

Enter Enscryb—a digital twin platform purpose-built for energy flexibility. Enscryb, a Nokia venture is designed to simulate, orchestrate, and optimize the electrical and financial outcomes of distributed energy assets in real time.

Enscryb’s ecosystem includes:

Real-World Momentum

In Europe, better coordination between transmission and distribution system operators is critical. As more generation connects at the distribution level, system balancing becomes a shared responsibility.

Digital twins can serve as a common language between TSOs and DSOs—offering a unified view of grid conditions, flexibility potential, and operational constraints. This is essential for unlocking the full value of distributed flexibility and ensuring system stability.

From Innovation to Infrastructure

To truly transform the grid, digital twins must evolve from pilot projects to core infrastructure. This means:

The technology is ready. The use cases are proven. And the need has never been greater.

Let’s Build the Future Together

So—how are you using digital twins in your strategy? What challenges are you facing in orchestrating DERs at scale?

Let’s connect and explore how we can build a more flexible, resilient, and intelligent energy future—together - Fill out the form below and let’s start the conversation.

Whether you’re a utility executive, grid operator, or technology partner, the question is no longer if you’ll use digital twins—but how fast you can scale them.

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