Digital Twin of the European Electricity Grid: A Review of Regulatory Barriers, Technological Challenges, and Economic Opportunities

The European Union (EU) is advancing a digital twin of its electricity grid as a flagship initiative to accelerate the dual transitions of decarbonization and digitalization. By creating a real-time virtual replica of the EU-27 power network, policymakers and industry stakeholders aim to enhance gri...

Full description

Saved in:
Bibliographic Details
Main Authors: Bo Nørregaard Jørgensen, Zheng Grace Ma
Format: Article
Language:English
Published: MDPI AG 2025-06-01
Series:Applied Sciences
Subjects:
Online Access:https://www.mdpi.com/2076-3417/15/12/6475
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The European Union (EU) is advancing a digital twin of its electricity grid as a flagship initiative to accelerate the dual transitions of decarbonization and digitalization. By creating a real-time virtual replica of the EU-27 power network, policymakers and industry stakeholders aim to enhance grid efficiency, resilience, and renewable energy integration. This review provides a comprehensive analysis of the three critical dimensions shaping the digital twin’s development: (1) regulatory barriers, including fragmented policies, inconsistent data governance frameworks, and the need for harmonized standards and incentives across member states; (2) technological challenges, such as achieving interoperability, integrating real-time data, developing robust cybersecurity measures, and ensuring scalable infrastructure; and (3) economic opportunities, centered on potential cost savings, optimized asset management, new flexibility services, and pathways for innovation and investment. Drawing on European Commission policy documents, regulatory reports, academic studies, and industry projects like the Horizon Europe TwinEU initiative, this review highlights that significant groundwork has been laid to prototype and federate local grid twins into a cohesive continental system. However, achieving the full potential of a pan-European digital twin will require additional regulatory harmonization, more mature data-sharing protocols, and sustained financial commitment. This review concludes with an outlook on the strategic convergence of policy reforms, collaborative R&D, and targeted funding, emphasizing how institutional momentum, federated architectures, and cross-sector integration are advancing a secure, resilient, and economically viable digital twin that is envisioned as a foundational layer in the operational and planning infrastructure of Europe’s future electricity system.
ISSN:2076-3417