1. **State the problem:** Simplify the expression $2cd - 2ce + d^2 - e^2$. 2. **Recall the formula:** The expression contains a difference of squares $d^2 - e^2$, which can be factored as $$(d - e)(d + e).$$ 3. **Group terms:** Group the terms involving $c$ and the difference of squares: $$2cd - 2ce + d^2 - e^2 = 2c(d - e) + (d - e)(d + e).$$ 4. **Factor out the common factor:** Both terms have a common factor of $(d - e)$: $$= (d - e)(2c + d + e).$$ 5. **Final simplified form:** $$\boxed{(d - e)(2c + d + e)}.$$