**3.1 Functional model of a cyber-physical distribution network**

In conventional distribution systems operating in parallel, the low level of cooperation means that many optimization options are not feasible. This not only reduces the efficiency of distribution systems but also increases their environmental impact. To address this, available Industry 4.0 technologies can be used to transform independent distribution systems operating in parallel into a cyber-physical distribution network, where the integration of individual distribution systems can be achieved, resulting in coordination that can greatly improve system performance and at the same time achieve a much more environmental friendly network operation (**Figure 9**).

The transformation of a traditional distribution network into a cyber-physical system may require the use of the following technologies:

#### **Figure 9.**

*Transformation of conventional distribution systems into a cyber-physical distribution network using Industry 4.0 technologies including smart sensors, edge computing, digital twinning, discrete event simulation, and real-time data-based decision making.*

