As energy systems become more decentralized and dynamic, the boundaries between centralized cloud computing and distributed edge devices are disappearing. This change calls for a new approach; one that not only distributes intelligence across the cloud-edge continuum but also enables secure, interoperable and scalable data exchange. Data Spaces emerge as a key enabler of this transformation, offering trusted environments where diverse energy stakeholders can share, access and govern data while maintaining control of them.
Within the HEDGE-IoT project [1], Data Spaces serve as a key mechanism to utilise the full power of cloud-edge orchestration. By combining advanced orchestration, interoperability frameworks and federated AI/ML capabilities, the project lays the foundation for next-generation digital energy infrastructures; resilient, flexible and ready to integrate future services at scale.
The role of the Cloud-Edge Continuum in Energy Digitalization
Energy systems today are becoming increasingly dynamic, data-rich and decentralized. A surge in connected assets like smart meters, distributed energy resources (DERs), EV chargers, battery storage, etc. creates a continuous stream of data that must be processed in real-time to optimize system efficiency, reliability and sustainability.
The cloud-edge continuum [2] enables this by distributing computational tasks appropriately:
- Edge nodes close to the data source perform latency-sensitive tasks like device control, anomaly detection and localized demand-response.
- Cloud platforms handle tasks that benefit from global visibility, such as system-wide forecasting, optimization and model retraining.
In the HEDGE-IoT project, this continuum is a foundational element that supports federated learning, application offloading and multi-site orchestration. By doing so, it reduces data transfer costs, enhances resiliency and ensures privacy by minimizing the movement of sensitive data.
The importance of Data Spaces
Data Spaces are collaborative environments that enable data to be shared between organizations and stakeholders while preserving sovereignty, security and interoperability [3]. They are socio-technical ecosystems defined by shared governance models, usage policies, semantic interoperability and trust frameworks.
In energy, this is transformative. For example:
- TSOs and DSOs can share grid data securely to improve coordination.
- Aggregators can access flexibility forecasts without compromising consumer privacy.
Prosumers can contribute data for community energy management with full control over how it is used.
In HEDGE-IoT, Data Spaces support distributed learning and data federation, aligning with frameworks like:
- International Data Spaces Association (IDSA) [4], where standards and reference architectures for secure and sovereign data exchange are defined.
- GAIA-X Federated Infrastructure [5], which promotes open, transparent, and federated cloud and edge services across Europe.
- Data Spaces Support Centre (DSSC) [6], providing practical guidance and coordination for the development and deployment of sector-specific Data Spaces
By aligning with these initiatives, HEDGE-IoT ensures that its solutions are not only interoperable and secure, but also scalable and future-proof within Europe’s evolving digital energy ecosystem.
How HEDGE-IoT integrates intelligence and interoperability
HEDGE-IoT builds intelligence into the edge and ensures seamless interoperability across components. This is managed through:
- Federated AI/ML algorithms, which allow models to be trained locally at the edge while still contributing to a shared global model for collective learning and optimization.
- Swarm computing, which enables distributed coordination and collaborative task execution across edge nodes, increasing system resilience and scalability.
- Application offloading, where computational workloads are dynamically shifted between edge and cloud environments based on resource availability, latency requirements, or energy efficiency goals.
To make this work, HEDGE-IoT adopts:
- Standards like SAREF and NGSI-LD ensuring semantic interoperability and machine-understandable data exchange [7][8].
- Middleware orchestration and data governance protocols to coordinate the deployment, execution and secure sharing of data and services across federated domains.
- A focus on modularity, allowing individual components to be reused across services and domains
Together, these elements foster innovation in edge-native energy applications, ranging from real-time dynamic pricing and decentralized energy trading to grid optimization and demand-response services.
Trust, Governance and Ecosystem Engagement
Trust is foundational in shared digital environments. HEDGE-IoT embeds governance principles such as:
- Data sovereignty and consent management, so individuals and organizations retain control over how their data is collected, processed, and shared.
- Transparent logging and usage monitoring for accountability and auditability throughout the data lifecycle.
- Compliance with ethics and trust frameworks for AI and IoT systems, aligning technological deployment with European values and regulatory standards.
The project also engages actively with the energy ecosystem:
- An Open Call mechanism will bring innovators and SMEs into live demonstrators.
- Collaboration with AIOTI [9] and similar European initiatives aligns efforts with broader goals for digital sovereignty and sustainable innovation.
These partnerships and mechanisms ensure that HEDGE-IoT’s impact extends beyond technical innovation to systemic transformation.
Smart energy systems are essential to achieving Europe’s climate and resilience goals and their success depends on the ability to collect, process and act on data from across the entire energy landscape. Data Spaces in the cloud-edge continuum provide a powerful foundation to build such systems: decentralized, intelligent, secure and inclusive.
The HEDGE-IoT project demonstrates how this can be done; showcasing how federated applications, edge intelligence and interoperable data sharing can unlock new capabilities in flexibility, reliability and sustainability.
As the project progresses, real-world demonstrators and replicators, including the Greek one, in which we (HSE) actively contribute, will validate these innovations and offer valuable lessons for scaling them across Europe.
And this is just the beginning. Stay tuned for more updates, open calls and results from our partners. The future of digital energy is taking shape with HEDGE-IoT leading the way.
- HEDGE-IoT Project Website, https://hedgeiot.eu/
- The European Cloud, Edge and IoT Continuum Initiative, https://eucloudedgeiot.eu/
- European Data Strategy, Data Spaces and Common European Data Spaces, https://data.europa.eu
- IDSA, International Data Spaces Reference Architecture, https://www.internationaldataspaces.org
- GAIA-X AISBL, Federated Services and Trust Framework, https://gaia-x.eu
- DSSC – Data Spaces Support Centre, https://dssc.eu
- ETSI, SAREF – Smart Applications REFerence Ontology, https://saref.etsi.org
- FIWARE Foundation, NGSI-LD API Specification, https://www.fiware.org
- AIOTI – Alliance for Internet of Things Innovation, https://aioti.eu
Authors:
Dimitrios Kranias
George Mourkousis
