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...

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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
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author Bo Nørregaard Jørgensen
Zheng Grace Ma
author_facet Bo Nørregaard Jørgensen
Zheng Grace Ma
author_sort Bo Nørregaard Jørgensen
collection DOAJ
description 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.
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spelling doaj-art-cbefc541f2d242c98a79777d13cb13062025-08-20T03:32:28ZengMDPI AGApplied Sciences2076-34172025-06-011512647510.3390/app15126475Digital Twin of the European Electricity Grid: A Review of Regulatory Barriers, Technological Challenges, and Economic OpportunitiesBo Nørregaard Jørgensen0Zheng Grace Ma1SDU Center for Energy Informatics, Maersk Mc-Kinney Moller Institute, The Faculty of Engineering, University of Southern Denmark, 5230 Odense, DenmarkSDU Center for Energy Informatics, Maersk Mc-Kinney Moller Institute, The Faculty of Engineering, University of Southern Denmark, 5230 Odense, DenmarkThe 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.https://www.mdpi.com/2076-3417/15/12/6475digital twinelectricity gridsmart gridprivacycybersecuritydata space
spellingShingle Bo Nørregaard Jørgensen
Zheng Grace Ma
Digital Twin of the European Electricity Grid: A Review of Regulatory Barriers, Technological Challenges, and Economic Opportunities
Applied Sciences
digital twin
electricity grid
smart grid
privacy
cybersecurity
data space
title Digital Twin of the European Electricity Grid: A Review of Regulatory Barriers, Technological Challenges, and Economic Opportunities
title_full Digital Twin of the European Electricity Grid: A Review of Regulatory Barriers, Technological Challenges, and Economic Opportunities
title_fullStr Digital Twin of the European Electricity Grid: A Review of Regulatory Barriers, Technological Challenges, and Economic Opportunities
title_full_unstemmed Digital Twin of the European Electricity Grid: A Review of Regulatory Barriers, Technological Challenges, and Economic Opportunities
title_short Digital Twin of the European Electricity Grid: A Review of Regulatory Barriers, Technological Challenges, and Economic Opportunities
title_sort digital twin of the european electricity grid a review of regulatory barriers technological challenges and economic opportunities
topic digital twin
electricity grid
smart grid
privacy
cybersecurity
data space
url https://www.mdpi.com/2076-3417/15/12/6475
work_keys_str_mv AT bonørregaardjørgensen digitaltwinoftheeuropeanelectricitygridareviewofregulatorybarrierstechnologicalchallengesandeconomicopportunities
AT zhenggracema digitaltwinoftheeuropeanelectricitygridareviewofregulatorybarrierstechnologicalchallengesandeconomicopportunities