Skip to main content
News announcement20 December 2022Directorate-General for Energy

Commission welcomes cooperation between ENTSO-E and EU DSO Entity on the digital electricity grid twin


The Commission welcomes today’s signature of a declaration of intent for the creation of a digital twin of the European electricity grid by the European Network of Transmission System Operators for electricity (ENTSO-E) and the association of European distribution system operators (EU DSO Entity) A flagship initiative of the “Digitalising the energy system – EU action plan”, published in October, it entails developing a virtual model of the grid that will help drive and coordinate investments in the digitalisation of electricity infrastructure.

Today’s signature, in the presence of EU Commissioner for Energy Kadri Simson, is this first step in the process, with ENTSO-E and the EU DSO Entity confirming they will cooperate to develop the digital twin. Their declaration of intent builds on the cooperation framework established in a Memorandum of Understanding between the two associations signed in January 2022.

Commissioner for Energy, Kadri Simson, said:

“The flagship initiative of the digital twin has raised a lot of interest in the industry. ENTSO-E and EU DSO Entity are best placed to drive forward the work, ensuring that the actions are fit for the energy system, the current one and the one we are building, while also engaging the other actors of the sector.”

Making the electricity grid more digital will enhance the efficiency and smartness of the whole energy system. It will help us achieve the goals set under the REPowerEU Plan by contributing to building an affordable, secure, sustainable and independent European energy system.

The European Commission has already confirmed it will provide financial support, with the 2023 Horizon Europe Work Programme including a call for proposal of EUR 20 million for this project.


The EU action plan for the digitalisation of the energy system outlines measures to enable the development of a sustainable, (cyber)-secure, transparent and competitive market for digital energy services, ensuring data privacy and sovereignty, and supporting investment in digital energy infrastructure.

It is estimated that about €584 billion of electricity infrastructure investments are needed between 2020 and 2030, in particular in the distribution grid, to reach the ‘Fit for 55’ and REPowerEU objectives for renewables and energy efficiency. Investments in digital solutions such as grid optimisation at distribution level will help reduce further capital expenditure on enhancing the existing grid infrastructure.

Related links


Publication date
20 December 2022
Directorate-General for Energy