Cyber physical systems (CPSs) are the systematic combination of physical processes and information and communication technology (ICT). They constitute the next generation of networked, embedded systems that explicitly consider the physical parts during their design and operations. CPS applied to the energy system leads to the possibility of more sophisticated controls, the interworking of different energy types, cooperative loads, smart factories, the interaction of markets and infrastructure, smart integration of renewable energy sources, automated and grid-friendly buildings, more knowledge about the system due to sensor networks and analytics, multiagent systems, usage of smart storage, information technology (IT) security challenges, and many other aspects of what is sometimes called smart grids.