Digital Twin Technology for Renewable Energy, Smart Grids, Energy Storage and Vehicle-to-Grid Integration: Advancements, Applications, Key Players, Challenges and Future Perspectives in Modernising Sustainable Grids

Abstract

To address the challenges faced by modern power systems—such as efficiency, dynamics, reliability, control, stability, economy and planning—significant efforts have been made to develop advanced techniques, tools and scientific innovations across various disciplines. Among these, the ‘digital twin’ (DT) has emerged as one of the most reliable and rapidly evolving technologies, now widely integrated into diverse applications. The incorporation of DT technology into energy systems marks a paradigm shift in achieving sustainable, efficient and resilient modern power grids. Although considerable research has been conducted on DT applications in the power sector, comprehensive reviews of its role in transforming power grids to accommodate high levels of renewable energy sources (RESs), smart grid technologies, vehicle-to-grid (V2G) systems and energy storage solutions remain limited. This paper seeks to bridge that gap by exploring the critical role of DT technology in this transformation. It examines the historical evolution, fundamental components and diverse applications of DT technology across modern grid systems. Detailed analyses focus on DT's application in modernising power grids, particularly in RES integration, energy storage, transmission and distribution, smart grid advancements and V2G systems. Additionally, the paper reviews progress, investments, standards, regulations and the key stakeholders driving DT advancements in power grids. Finally, major challenges, limitations and future perspectives for DT applications in next-generation power grids are discussed. Key findings reveal that while DT technology delivers significant benefits—such as improved operational efficiency, enhanced grid stability, greater reliability, cost reduction, cybersecurity and resilience through real-time monitoring, predictive maintenance and optimised energy management—addressing existing limitations is crucial to maximising DT's potential in advancing and modernising sustainable power grids.