Economic impact of digital twins on renewable energy investments

Abstract

Digital twins have emerged as pivotal tools for reshaping renewable energy investments by enhancing operational efficiency, predictive maintenance, and grid management. This review explores the economic impact of digital twins specifically in the context of renewable energy investments. Digital twins, virtual replicas of physical assets and processes, facilitate improved decision-making through advanced simulations and real-time data analytics. In renewable energy sectors, they optimize the performance of solar, wind, and storage assets by predicting energy production, optimizing maintenance schedules, and enhancing overall asset lifecycle management. By providing accurate forecasts and scenario analyses, digital twins minimize operational risks and maximize energy yield, thereby increasing profitability and return on investment for renewable energy projects. Moreover, digital twins streamline operational workflows and reduce costs associated with manual monitoring and maintenance. They enable proactive maintenance strategies, identifying potential faults before they cause disruptions, thus minimizing downtime and repair expenses. This efficiency contributes to lower operational expenditures and enhances asset longevity, further bolstering economic viability. In addition to operational efficiencies, digital twins support strategic decision-making in renewable energy investments. They facilitate detailed financial modelling and risk assessment, allowing stakeholders to assess project feasibility, optimize capital allocation, and attract financing. Enhanced transparency and data-driven insights provided by digital twins increase investor confidence and reduce perceived risks, thereby lowering the cost of capital for renewable energy projects. Furthermore, digital twins foster innovation and technological advancements in the renewable energy sector. They enable continuous improvement through iterative learning and adaptation based on real-world data, driving innovation in energy efficiency and performance optimization. Digital twins represent a transformative technology with significant economic implications for renewable energy investments. By enhancing operational efficiency, reducing costs, facilitating informed decision-making, and fostering innovation, digital twins play a crucial role in accelerating the transition towards a sustainable and economically viable renewable energy future. Keywords: Economic Impact, Digital Twins, Renewable Energy.