Higlights of EU Regional Digital Energy Summit ’25 – Part 1
In one focused day, the Summit brought together leaders, energy and digital experts, innovators and visionaries to explore how AI & Data, sector coupling, cyber resilience and AI platforms are already reshaping Europe’s energy system — and what this means for organisations in practice. The quality of dialogue and openness of exchange left participants genuinely energised.
How Flexibility and Sector Coupling Are Reshaping Europe’s Energy System
The energy transition is not just about adding more renewable capacity. It’s about fundamentally reimagining how we manage, distribute, and balance energy across Europe. At the EU Regional Digital Energy Summit 2025 in Ljubljana, leading experts shared critical insights into the technologies and strategies that will define the grid of tomorrow. This post explores the paradigm shift toward active grid management, the urgent need for flexibility, and the transformative power of sector coupling.

The Shift from Passive to Active Grid Management
For decades, distribution system operators (DSOs) have managed grids in a largely passive manner—building infrastructure to accommodate demand as it grew. But the renewable energy revolution has changed the game. Gregor Taljan of Energienetze Steiermark explained that DSOs must now transition to active grid management, where flexibility becomes a viable alternative to traditional grid expansion.
However, Taljan cautioned that not all flexibility is created equal. Flexibility must be correctly located and consistently reduce grid load to be effective. Digital solutions like forecasting and flexibility platforms are essential, but their economic efficiency must be carefully evaluated against classical solutions. The key is finding the right balance between technology and pragmatism.

The Urgent Reality of Flexibility
Nico Keyaerts from ACER brought a European perspective to the flexibility challenge. What was once a theoretical concept is now an urgent reality driven by massive renewable energy penetration. The problem manifests in two critical ways: oversupply periods (when solar generation peaks at noon, driving prices negative) and scarcity periods (when demand spikes but generation is low, driving prices extremely high).
Keyaerts emphasized that no single solution will solve this problem. Instead, a comprehensive portfolio of flexibility measures is required—including demand response, energy storage, smart metering, and non-wire solutions like dynamic line rating. Critically, consumer engagement through dynamic pricing contracts, combined with education and automation, is essential to unlock this flexibility potential across Europe.

The Digital Twin: Foundation of Tomorrow’s Grid
The panel discussion “Bridging Power and Digital: Utilities and Industry in the New Era,” led by Uroš Kerin (EIMV) with Klemens Reich (Austrian Power Grid AG), Goran Levačić (HOPS), and Jody Verboomen (Siemens Energy), established the digital twin as the non-negotiable foundation of the modern digital grid. A digital twin provides the complete, real-time observability required to understand the state of the grid at any moment.
Beyond mere observation, the panel highlighted the power of physics-informed AI. By combining physical models with AI, it is possible to create highly accurate “virtual sensors” that can predict critical parameters (like the hotspot temperature of a transformer) without the need for expensive physical hardware. This allows operators to safely push assets closer to their operational limits.

Sector Coupling: The Overlooked Key to Decarbonization
One of the most compelling insights from the summit came from Miha Bobič of Danfoss. While Europe has achieved a 15% CO2 reduction in buildings (falling short of the 22% target), the real challenge is that 75% of the building stock is highly inefficient. Bobič argued that sector coupling—connecting electricity, heat, and cold systems—is the key to decarbonization.
His critical insight is that heat and cold storage offer enormous, untapped potential for flexibility and system inertia, yet remain overlooked in Europe’s energy transition. By prioritizing heat as a storage medium and integrating it with renewable generation through heat pumps and intelligent controls, Europe can create efficient, resilient systems that generate value for all stakeholders while achieving the 2050 decarbonization goal.

Transforming the Heating Sector
Vojtech Vavřička of Orgrez Group demonstrated how this vision is being realized in practice. He showcased how their platform optimizes the operation of heating plants by using predictive models for electricity prices and smartly managing thermal storage. Their innovative business model—based on profit-sharing rather than service fees—is designed to accelerate adoption in a traditionally conservative market.
Martin Feder from Schneider Electric delivered a powerful message on the necessity of collaboration. His core argument was that building decarbonization is impossible without grid decarbonization, making sector coupling and deep collaboration between building automation and energy providers the only path forward. He also pointed out that retrofitting the vast stock of existing buildings is significantly more carbon-efficient over the long term than focusing solely on new constructions.

Building Smarter Buildings: The Role of Automation and Standards
Beyond cybersecurity, the energy transition also requires a rethinking of how buildings consume energy. Gusts Kossovičs from eu.bac (European Building Automation and Controls Association) described building automation and control systems (BACS) as the “brain of the building.” The data is compelling: BACS can reduce energy consumption by up to 46% with a payback period of just three years.
While the EU is mandating these systems, Kossovičs noted that the primary challenge lies in national-level implementation and compliance. The upcoming Smart Readiness Indicator (SRI) is poised to become a critical driver for market adoption by providing a standardized rating of a building’s intelligence. Standardization and clear metrics are essential to accelerate the transition.

From Policy Mandates to Market Opportunities
The panel discussion “Integrating Heat, Power and Data: The Sector Coupling Advantage,” moderated by Miha Bobič (Danfoss) with Vojtěch Vavřička (ORGREZ TRADE), Gusts Kossovičs (eu.bac), and Martin Feder (Schneider Electric), addressed a critical gap: the disconnect between ambitious EU policies and national-level implementation.
The consensus among panelists was clear: the narrative must shift from the “burden” of mandates to the “opportunity” of lower costs, improved health, and increased comfort that smart, efficient buildings provide. This reframing is essential for gaining public support and accelerating adoption.
The panel also identified the aging grid infrastructure as the single biggest bottleneck to deep decarbonization and effective sector coupling. While AI and smart controls can optimize what we have, significant investment in modernizing the physical grid is unavoidable.

The Bottom Line
The future grid will be flexible, interconnected, and intelligent. It will leverage sector coupling to integrate electricity, heat, and cold systems. It will rely on digital twins and AI to optimize operations in real-time. And it will require a holistic approach, with simultaneous investment in hardware, software, automation, and the people and processes that manage the system. The transition is already underway—and the opportunities are immense.
About the EU Regional Digital Energy Summit
DES is where Europe’s digital energy leaders meet to read the direction of the transition, before it becomes mainstream and where the rubber meets the road.
The quality of dialogue and openness of exchange left participants genuinely energised. DES 25 was this year delivered in cooperation with partners Informatika, Orgrez, NITES, Cigre – CIred.
Join us at the next edition of EU Regional Digital Summit: 2–3 December 2026 in Ljubljana. Be part of the conversations shaping Europe’s digital energy future — and consider bringing your own use case to the stage.
