In today’s industrial environment, making decisions based solely on direct observation or historical data is no longer enough. Operations are now more demanding, assets are more sophisticated, all while the margins of error are decreasing. At the same time, organisations must make faster, higher-stakes decisions in increasingly complex environments. 

In this context, the ability to simulate scenarios, anticipate behaviours, and optimise processes before acting on the real environment has become a decisive advantage. This is where digital twins come in: a technology that allows industries to see what’s happening in real time and perform tests without putting the actual operation at risk. 

Digital twins are a gamechanger for the energy sector, unlocking critical data and leveraging it for increased energy efficiency and early risk mitigation. As the energy landscape becomes increasingly more complex, digital twins are emerging as a new intelligence layer to power smarter, more flexible, and adaptive grids. 

Going from observation to simulation  

Traditionally, infrastructure management has largely been reactive, relying on historical data, engineering assumptions and operational experience to guide decision-making. But in today’s volatile environment, infrastructure is no longer predictable. Demand curves are shifting, weather patterns are unstable, renewable generation is intermittent.  

Fortunately, advances in cloud computing, AI, and sensor technologies are enabling operators to simulate, predict, and optimise assets via virtual models. Simulating digitally and in real time, the operational behaviour of a physical asset and the environmental conditions impacting it results in more informed decisions. 

In the energy sector, digital twins are quickly emerging as a critical tool for utilities and grid operators to explore an endless virtual universe of possibilities. They offer a secure, virtual testing environment where grid assets and behaviour can be analysed, stress-tested, and optimised before risk materialises in the real world.  

In addition to operational simulations, digital twins can also model planned and unplanned outages under dynamic weather and demand conditions. With the rise of distributed energy resources, electrification, and extreme-weather risks, digital twins help utilities transition from reactive to predictive, data-driven operations. 

In fact, a report by industrial technology company Aveva estimates that digital twins can help organisations in energy-intensive industries to achieve savings of between 15% to 20%. The technology can also reduce project timelines by as much as six to 12 months, while lowering capital expenditure by around 10% of a project’s total value.  

Around the world, use cases are already deployed across diverse scenarios, enabling utilities to simulate future states and coordinate grid operations more proactively. From urban distribution networks to national energy systems, utilities are using digital twins to improve planning, strengthen resilience, and accelerate the integration of renewables. 

Virtualising power systems for a future-ready grid  

Modern digital twin platforms integrate data from grid management systems, sensors, geospatial models and asset registries into a unified digital environment. Combined with advanced simulation tools and AI-driven analytics, they offer deeper situational awareness, from predicting maintenance issues to modelling energy-flow patterns. 

In Italy, the historic port city of Trieste is modernising its urban electricity network to accommodate a growing number of distributed energy resources (DERs) and increasingly dynamic demand, while maintaining reliable electricity supply. To support this transition, distribution system operator AcegasApsAmga developed a full digital twin of the city’s grid. The platform integrates network data, smart-meter information, DER visibility and geospatial intelligence to assess emerging congestion, forecast load patterns, and determine the energy required to maintain grid stability during periods of higher demand. 

In the UK, the transition towards a net-zero energy system is making grid operations increasingly complex as growing volumes of offshore wind, battery storage, and decentralised generation reshape how electricity is generated and managed. Recognising the need for greater coordination across a more interconnected energy system, the National Energy System Operator (NESO) has been developing the Virtual Energy System (VES) since 2021 as part of its wider digitalisation programme. The VES is the world’s first ecosystem of connected digital twins, enabling coordinated modelling of electricity, gas, storage, and other assets across operational time horizons to improve whole-system planning and decision-making.

In neighbouring Singapore, the rapid adoption of rooftop solar, electric vehicles, and new distributed technologies is reshaping how the nation’s electricity network is planned and operated. Taking a forward-looking approach to grid planning, national grid operator SP Group (SP) introduced the Grid Digital Twin, comprising both Asset Twin and Network Twin. This initiative creates a virtual replica of SP’s entire electricity network assets, forming an “energy metaverse” that network optimisation, asset management, and operational decision-making under evolving demand and grid conditions.  

Taken together, these initiatives reflect not just a technological shift, but a strategic one. As electricity systems become more decentralised and data-intensive, digital twins are emerging as a critical capability that enables utilities to navigate growing complexity while modernising their energy infrastructure. 

Building the digital foundations for a smarter grid  

Here in Malaysia, Tenaga Nasional Berhad (TNB) continues to strengthen the digital capabilities needed to support more intelligent grid operations. Reflecting its leadership in advancing grid modernisation across ASEAN, the utility is investing in technologies such as AI-driven forecasting and digital twins to build a smarter, more resilient and future-ready electricity network. 

For instance, TNB set a new industry standard by integrating digital twin technology with its Special Protection Schemes (SPS) to anticipate and resolve potential grid issues before they materialise. The initiative has streamlined the design and optimisation of SPS schemes, enabling more proactive planning and enhancing the reliability of grid operations. 

TNB Genco has also developed a digital twin initiative at two power plants in Manjung, Perak to improve plant efficiency by utilising real-time data analytics. By continuously tracking equipment health including turbines, boilers, and rotary machinery, the system allows for timely maintenance and lowering fuel costs. 

As distributed energy resources like solar become more prevalent, TNB is also deploying Smart Energy Management Infrastructure integrated with the Energy Integration Project (SEMI-EIP), that evolves towards digital twin framework to support decarbonised and customer-centric energy ecosystems. 

A pilot for instance in the Elmina residential community with high rooftop solar penetration enhances visibility into distributed energy flows and supports reliability. The islands of Pulau Perhentian, Pulau Redang, and Pulau Tioman also serve as pilot sites for monitoring and planning for hybrid and renewable microgrid systems. 

Bringing stability to an era of uncertainty  

Accelerating load growth, variability of renewable generation, and increasing challenges of extreme weather are together impacting grid resiliency in the clean energy transition. Digital twin technology as a predictive tool to mitigate or eliminate risk is the industry’s best strategy for counteracting the evolving energy demands in an age of uncertainty. 

Malaysia is well-positioned to manage the growing complexity of a modern energy system.

Malaysia is well-positioned to manage the growing complexity of a modern energy system. Through continued investments in grid modernisation, digitalisation, and advanced operational capabilities, TNB is strengthening the foundations needed to support a more interconnected, decentralised and data-driven energy future.  

Rather than innovation for its own sake, digital twins are part of TNB’s proactive strategy to safeguard grid reliability, enhance operational resilience, and ensure a stable and secure electricity supply for all Malaysians. These capabilities will play an increasingly important role in delivering the certainty and confidence needed to power the nation’s future.