Europe’s energy sector digitalisation challenges identified
Image: TwinEU
A review of Europe’s energy sector digitalisation landscape by the Horizon Europe supported TwinEU project has identified challenges hindering the further adoption of digital tools.
Drawing on input from stakeholders as well as reviews of EU funded initiatives and the literature and how these align to EU policy directives including the energy sector digitalisation action plan, the aim was to address key gaps, and consolidate stakeholder requirements for the TwinEU project.
Among the key issues identified are inadequate interoperability between systems, insufficient data governance and cybersecurity measures, and particularly at the LV level limited grid observability restricting real-time monitoring and advanced forecasting capabilities.
Others are stakeholder coordination, regulation and standardisation and the future development of Europe’s grids and the expectant role of digital twins in shaping them.
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“Digitalisation is reshaping the EU energy sector, addressing complex challenges and unlocking transformative opportunities,” the report reads.
“As the energy system transitions toward decarbonisation, digital solutions such as digital twins, AI and advanced data analytics are becoming integral in ensuring grid resilience, renewable energy integration and operational efficiency.”
It adds: “Digitalisation, particularly through digital twins, offers scalable and interoperable solutions that optimise grid operations, foster data-sharing frameworks and enhance energy market participation.”
The TwinEU project, one of Europe’s largest in terms of both funding and participation, with 75 partners across 15 countries, is aimed to create the concept of a pan-European digital twin of the electricity system based on the federation of local twins.
Kicked off in January 2024 the 36-month project still has some way to go, with the current review planned to guide the integration of digital twins across the EU energy landscape in a federated way.
Recommendations for energy sector digitalisation
Drawing on the findings, a series of recommendations have been derived for actors in the energy value chain, starting with the need to prioritise interoperability and standardisation in optimising energy system digitalisation to enhance collaboration, reduce system fragmentation and support harmonised interfaces.
Strengthening cybersecurity and establishing frameworks to counter cyber threats through encryption, real-time threat monitoring and robust data privacy measures is considered vital to securing critical energy infrastructure and fostering stakeholder trust.
The harmonisation of regulations across EU can help eliminate barriers to cross-border and cross-sector energy collaboration. Policy reforms that encourage the adoption of digital technologies and attract relevant investments also essential for the transition to a digitalised energy system.
Regarding the future development of EU grids and the role of digital twins, the development and valorisation of tools and systems designs that promote the incorporation of renewable energies are key for the decarbonisation of the energy system.
The scalability of technical solutions can be enhanced through the adoption of open source and cloud-based solutions and the development of dynamic pricing models and flexibility markets empowers consumer engagement and optimises overall energy management.
Last but not least, a collaborative platform should be built where TSOs, DSOs, market operators and other stakeholders can co-simulate complex market-grid interactions, share data and jointly analyse scenarios to help an overarching assessment of the system.
