Two Are Better Than One: Digital Twins Offer Many Benefits in Grid Planning and Control

Industry News – March 19, 2025

Digital twins change the way distribution system operators plan, operate and monitor their grids. They can enhance efficiency, reduce costs and improve grid stability. In light of the growing share of renewable energy, this technology is essential. Here we present the latest projects, areas of application and requirements for these virtual doppelgangers.

Digital twins are virtual copies of physical systems that open up new possibilities for power grid operation. In a study entitled The Digital Twin in the Network and Electricity Industry, the German technology organization VDE explains that distribution system operators can use a combination of physical models, data analysis and machine learning to create an accurate copy of their grids at any time and make predictions about future developments. The twins allow data from sensors, control systems and other sources to be evaluated in real time, load flows to be simulated and failures to be detected and analyzed, among other things.

For the European Association of the Electricity Transmission and Distribution Equipment and Services Industry (T&D Europe), digital twins play a key role in the energy transition. In a position paper from October 2024, the association cites real-time monitoring and the analysis and optimization of energy infrastructure as important applications. They are also useful for grid planning and the analysis of scenarios, which allows grids to be made more efficient, reliable and flexible. According to T&D Europe, digital twins could also help integrate renewables and implement smart grids.

Digital twins are increasingly necessary

With the expansion of renewable sources of energy and the increasing decentralization, the need for digitalization in the distribution system is growing. Without automation, it will no longer be possible to manage extremely decentralized energy systems, as the grids must be able to respond quickly and flexibly to fluctuating wind and solar power generation. A growing number of grid operators are now relying on digital twins to better understand and manage the effects of this volatile supply,

and they are receiving support from software developers. “Our platform first creates a digital twin of the power grid – this is the first critical step. It is not only about combining various data of the grid operator, but also about validating their content to enable physical simulations,” explains Simon Koopmann, Co-founder and CEO of Envelio, a close partner of E.ON that specializes in the implementation of smart grids.

To help grid operators monitor and manage electricity flows in real time, the twin is fed with measurement data from the grid. “This can be secondary substation measurements, meaning data collected by the grid operator, for example, from transformers or feeders. But it can also be live measurement data from intelligent metering systems that the grid operator purchases from the metering provider as additional service,” Koopmann adds.

His company’s platform uses this data to estimate the status of the grid. Of course, they do not measure at every point in the grid – that would be inefficient. Instead, they want to make the status of the grid as transparent as possible with as few measurement points as possible. As required by Section 14a of the German Energy Industry Act EnWG, power grids are designed to be controlled at long intervals of around one minute rather than one-second intervals. This is frequent enough though, as the grid does not immediately respond to brief overloads of only a few seconds.

Maximizing utilization of existing grids

Alliander, one of the largest grid companies in the Netherlands, entered into a technology partnership with Siemens in the fall of 2024. Their goal is to significantly increase the flexibility and efficiency of the Dutch power grid. At the heart of the initiative is Siemens’ Gridscale X software platform, which is to increase grid usage by up to 30 percent.

Alliander supplies around 3.5 million customers with electricity and gas. In the Netherlands, more than half of the electricity used comes from renewable sources, which significantly increases the demands on the distribution system. In addition, there are enormous bottlenecks, with some customers waiting up to ten years for a grid connection. This is where an efficient flexibility management is needed to maximize grid capacities, channel investments and reduce costs. “Flexibility management is essential for a renewable and resilient grid,” says Sabine Erlinghagen, CEO of Siemens Grid Software.

Improving cooperation between municipalities and grid operators

EnBW is also working to address this issue. To this end, the German energy company from Baden-Württemberg acquired Enersis, a Swiss company focused on smart grids. Enersis offers digital twins as a SaaS solution that create a virtual copy of distribution systems and can be fed with real-time data. Prior to the acquisition, EnBW subsidiary Netze BW already worked closely with the Swiss software developer to create the KommunalPlattform, a municipal platform. This digital interface is designed to promote the partnership between grid operators and municipalities, for example by highlighting synergy potential in planned construction projects or by making feed-in and consumption data transparent and comparable.

Digital twins for planning, operation and maintenance

Digital twins can be used for a wide range of tasks. One of them is predictive maintenance. Using sensor data and predictive models, virtual grids can predict wear and potential failures before they lead to expensive and time-consuming repairs. This not only reduces costs but also extends the systems’ life span.

Historical and real-time data analyses can be used to optimize grids and simulate future loads. For example, the digital twin can be used in scenario analyses to show the impact of different feed-in and consumption scenarios on grid stability. The E.DSO Technology Radar, for example, highlights the importance of such simulations in identifying bottlenecks and planning target-oriented investments.

This also has advantages when grids need to be expanded or new consumers and producers need to be integrated. “As requests increase, automated processes, such as the verification of grid connections for PV systems or heat pumps, massively reduce costs and ease the burden on grid operators. Rather than hiring new staff, which is often hard to find, the workload is managed more efficiently. Another area of focus is optimizing grid capacity. Close monitoring and controlling could unlock new capacities instead of using conservative planning approaches. The key is to create more intelligence and transparency at all grid levels, especially in the lower ones, to optimize infrastructure utilization.

Increasing cybersecurity

Digital twins store and process large amounts of sensitive data, making them potential targets for cyberattacks, the number of which has increased in the past few years. According to EU Commissioner Thierry Breton, more than 200 cyberattacks were reported in the energy sector in 2023 alone, and more than half of them specifically targeted Europe. From wind parks and utilities to grid operators and mineral oil storage facilities, it could hit anyone. So proper protection is essential.

But the virtual doppelgangers are already helping to protect the energy supply. Security gaps and potential attack vectors can be safely identified and tested with the digital twin before real grids are affected, the VDE explains. This means digital twins enhance the power grid’s resilience against external threats.

What role does artificial intelligence play in digital twins?

In today’s dynamic power grids, AI is increasingly becoming a standard component of digital twins because it makes the systems more efficient. “In the medium term, the trend is clearly toward AI-based applications, especially in areas related to forecasting, such as predicting the grid status for the next few hours or days. This is where artificial intelligence and machine learning can play an important role, for example, to better predict power flows in the grid,” says Koopmann, founder of Envelio. He believes that while AI will not be needed for basic tasks such as calculating power flows in the grid, it will become indispensable for predictive scenarios and more complex forecasts.

Sebastian Wende-von Berg, division manager at Fraunhofer IEE and head of the scientific report Data Analysis and AI in the Power Distribution Grid of the Data4Grid project of the German Energy Agency dena, also sees huge potential in digitalization and AI to increase the efficiency and flexibility of power grids: “AI enables grid operators to analyze data, make proactive decisions and automate decision-making processes – especially in the medium to low-voltage grids.” His Data4Grid project shows the challenges that come with this, such as incorrect or manipulated data that complicate data-driven processes.

Virtual grids also require maintenance

Modeling and maintaining digital twins are actually very complex processes that require a high level of data integration. This includes comprehensive data collection and the use of advanced analytics platforms. To integrate digital twins into existing systems, distribution system operators must ensure data security and interoperability, for example with SCADA and GIS systems, and that their infrastructure can communicate in real time. In addition, grid operators must comply with regulatory specifications. For smaller grid operators in particular, this can quickly overwhelm their staff and exceed their resources and expertise.

That is why Wende-von Berg is calling for investment in metering technology, data management, cybersecurity and the much-needed grid expansion. “The combination of intelligent technology and robust grid expansion is essential for a sustainable energy transition,” he concludes.

By Frank Urbansky

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