Both citizens and authorities play a crucial role in the successful implementation of Positive Energy Districts (PEDs). However, the current public participation methods often fail to facilitate interactive knowledge production in the context of energy flexibilisation and PEDs for the citizens. To close this gap, the DigiTwins4PEDs project will use an innovative public participation process and further develop energy simulation tools using urban digital twins. These tools could address issues such as energy flexibility strategies, including demand-side management, sector coupling, and energy storage options, among others. To support the public participation process, the urban digital twin platform will be integrated into a living lab concept and implemented in different case study regions to co-design energy flexibilisation strategies with citizens. The ultimate goal is to deliver a best-practice catalogue and an action plan for other cities to implement a community-driven transition to PEDs.