Digital Twins: Transforming Europe’s Energy Systems Across the Value Chain

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 in the energy sector, particularly for optimizing and managing renewable energy systems and thus making them smarter, more resilient, and more efficient.

The EU Grid Challenge: Electrification, Renewables, and Modernization

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.

This calls for innovative solutions, including the adoption of smart grids, digitalization, and grid enhancement technologies. The European Commission has identified Digital Twin technologies as one of the strategic levers to address this challenge.

Policy and Data Foundations for Digital Twins

European Commission’s Action Plan:

The European Commission has identified Digital Twin technologies as a strategic lever to meet these challenges. The 2022 “Digitalising the Energy System” action plan outlines the need for a federated digital twin of the EU electricity grid, designed to enhance system intelligence and support real-time operations.

Common European Energy Data Space (CEEDS):

Fast, secure, and interoperable data exchange is essential for digital twin functionality across borders. To reduce the complexity and cost of developing solutions, the  Common European Energy Data Space aims to provide a unified framework that enables seamless data sharing and integration.

TwinEU Project: 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.

Why an Ecosystem of Solutions is Needed

It is well understood that there is not one single master solution capable of resolving all energy system challenges at once. Instead, progress requires an ecosystem where multiple technologies deliver best-in-class solutions for different problems, while interoperating transparently and efficiently. This way, the combined benefits extend across the energy value chain—supporting grid operators, commercial and industrial (C&I) customers, developers, and aggregators alike - adding up to a much greater overall impact, including, but not limited to:

Predictive Maintenance for Smarter Grid Management

The well-known real-time asset monitoring combined with AI-based prediction of fault events and maintenance needs is increasingly being applied across both grid infrastructure and C&I energy assets. This enables operators to strengthen system reliability while helping businesses maximize uptime and utilization of their critical equipment—expanding toward more holistic energy and infrastructure management.

Digital Twins for Distributed Energy Resource (DER) Integration

Digital twins are used to measure and analyze performance with high resolution, assess new connection requests, and guide demand-driven investments in expansion or flexibility. For grid operators, this supports system planning and reliability; for C&I customers, it helps model the impact of solar, storage, or EV charging on their portfolios—ensuring investments deliver maximum value while aligning with system needs.

Congestion Forecasting and Proactive Grid Management

Real-time observation combined with AI-supported demand and supply forecasting enables proactive mitigation of imbalances and congestion. For operators, this means more resilient system operations; for C&I customers, it allows them to anticipate grid stress, adjust their flexibility strategies, and avoid costly exposure to peak charges or volatility.

The Role of Grid Users: Prosumers, Flexumers, and Aggregators

While grid-level initiatives are critical, it is equally important to consider the role of grid users themselves—their needs, their contributions, and the benefits they can unlock by actively participating in the energy system of the future.

Collaboration from prosumers, flexumers, industrial and commercial participants, and aggregators is a key driver of resilience and efficiency. These stakeholders bring distributed assets and flexibility that, when harnessed effectively, not only support grid stability but also deliver tangible economic and operational value to the participants themselves.

Digital Twin technology must therefore penetrate all layers of the energy system—not just the grid—to help C&I players, IPPs, and aggregators optimize their techno-economic value stack while contributing flexibility in a grid-friendly way. Achieving a fair balance between system needs and participant benefits is central to realizing the full potential of flexibility.

Enscryb’s Role Connecting Behind-the-Meter and Front-of-Meter Flexibility

At Enscryb, our role is to connect the dots between behind-the-meter and front-of-the-meter flexibility—helping energy stakeholders from commercial and industrial (C&I) customers, asset developers, aggregators and grid operators unlock the full value of their portfolios while supporting system-wide resilience.

The Enscryb Digital Toolbox brings together advanced digital twin simulation and real-time orchestration to optimize how flexibility is planned, validated, and deployed.

Together, these tools enable energy stakeholders to maximize techno-economic benefits from the value stack, while respecting internal objectives and external system constraints.

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