Digital Twins in Energy Industry: Use Cases and Challenges Explained

The conventional energy industry has long faced inefficient machinery, unscheduled outages, and excessive maintenance expenditures.

Imagine having access to a digital setting that replicates every detail of a wind farm, power plant, or solar system. Imagine leveraging that virtual replica to anticipate malfunctions, enhance efficiency, and minimize unavailability—all without interfering with live operations. 

This is the power of digital twin technology. This is not science fiction, but rather the energy the truth brought to life through digital twins in the energy industry.

A recent study projects that the global market for digital twins in the energy industry will reach $48.2 billion by 2026 from $3.1 billion in 2020, reflecting the technology’s quick uptake. Digital twins are quickly emerging as a critical energy management component, especially in the “digital twin for utilities” and “digital twin in renewable energy” sectors.

So, first, let’s understand what digital twins are.

A digital twin is simply a duplicate. It is a cloud-based software representation of all the resources, data, and workflows found in the real version. With the help of digital twins, you may explore an endless virtual universe of possibilities. This secure, virtual testing environment allows you to educate and experiment through "what-if" situations as much as you like without compromising the actual thing.

Here is how it works. 

Engineers generate a precise model of an asset first. After that, it combines it with data, such as sensor and inspection data, to produce a digital twin of the asset. The model then uses this data to generate a digital twin.

Now, let's discover how progressive businesses have increased their energy efficiency by using digital twins as part of their digital transformation.

Over the upcoming years, digital twin technologies will likely increase. In short, for many sectors to compete in this new digital era, they will need to adjust to the quickly changing technologies of today. 

Meanwhile, the energy industry is changing, shifting toward a low-carbon future, focusing on improved efficiency and more automation, exploring new energy sources, and adhering to ESG regulations. 

Digital twin in energy industry are primarily utilized for real-time monitoring and visualization; they are only now beginning to fully realize their promise in the context of artificial intelligence and machine learning. On the other hand, digital twins are being used more advanced in industries like aerospace, manufacturing, healthcare, and automotive, such as through predictive analytics or production phase simulation.

Even better, with the best digital twin development company’s assistance, businesses may use these more sophisticated digital twins' built-in AI capabilities to obtain better insights into forecasts, scenario planning, and optimization.

• Optimizing operational effectiveness 

• Low-risk training situations

• Lowering upkeep expenses 

• Describe the operational disruptions in detail. 

• Facilitating the making of more informed decisions

• Boosting revenue

In short, cutting-edge technologies like real-time 3D modeling and Internet of Things (IoT) sensors are already being used in energy sector operational locations. Nevertheless, because these systems frequently function independently, it can be challenging to obtain a precise image of the general state of an operations site at any given moment.

Source: https://www.softeq.com/blog/digital-twins-for-renewable-energy-businesses-3-promising-use-cases

Like most other industries, the energy sector must increasingly change its processes to remain successful. Change has become at the forefront of every business's agenda due to climate obligations and the demand for safer and more environmentally sound energy sources.

Digital twins in the energy sector may explore new opportunities safely and effectively without messing with the status quo. Although this path has numerous advantages for the industry, consumers may benefit significantly from the more affordable and eco-friendly solutions that digital twins can provide. 

Let's look into some of the benefits of digital twins in the energy sector. 

• Optimized Energy Management

Digital twin energy management allows businesses to build virtual versions of their tangible assets, such as solar grids, wind farms, and power plants. This will enable them to simulate and monitor various scenarios in real-time. 

Thus, it aids energy organizations in increasing overall efficiency, minimizing waste, and optimizing production. By utilizing digital twins in energy management, organizations may make data-driven decisions that result in considerable cost savings and resource optimization.

• Better Utilization Control

A digital twin provides a complete picture of utility operations, from generating to distribution. Digital twins can be used by utilities to track network efficiency, forecast variations in demand, and improve energy allocation. 

This results in lower operating costs, increased customer happiness, and enhanced service dependability. Digital twins in energy management can also assist utilities in meeting regulatory obligations by offering comprehensive reports and insights.

• Higher efficiency and more predictable outcomes

Digital twins enable monitoring networks, resources, and procedures continuously and in real time to ensure everything operates seamlessly and safely as feasible.

• Better decision-making 

Digital twins can assist you in comprehending how modifications may impact the efficiency of a resource, procedure, or network. This enables energy organizations to make more informed choices and prepare for the future.

• Early problem detection and resolution

Digital twins enable continual data analysis and predictive models to identify issues before they arise.

• Increased efficiency = Lower costs

Employing a network of distributed testers (DTs) can provide you with a comprehensive view of the whole energy ecosystem, allowing you to plan more efficiently and pinpoint essential areas for development rather than constructing expensive prototypes.

• Risk-free testing and experimentation

Digital twins enable you to evaluate and optimize tactics without compromising infrastructure by modeling and simulating various scenarios.

To fully utilize Digital twins capabilities, an organization must first identify the appropriate use cases of digital twins, which can differ based on the needs, the problem it seeks to solve, and the industrial sector in which it works.

In the next section, we can discuss the use cases of digital twins in the energy sector. 

In a nutshell, digital twins have become a game-changer with their plethora of uses revolutionizing the way energy businesses conduct business. Performance, environmental sustainability, and profitability are being increased by the use cases of digital twins in the energy industry and all businesses of all sizes. 

Let’s jump in and explore the main use cases of digital twins in the energy industry!

Distribution and Storage of Energy

Batteries and other energy storage technologies can be simulated using digital twins to learn about their lifespan, efficiency, and performance. This helps optimize energy storage plans and guarantees a steady electricity supply.

Analysis of Energy Consumption

Constructions or industrial complexes with digital twins can track and examine patterns in energy use. This encourages the effective use of energy and offers insights into possible energy-saving strategies.

Optimization of Renewable Energy

Renewable energy sources such as solar panels and wind turbines can have their performance replicated by digital twins under different situations. This aids in energy output prediction, placement optimization, and maximizing the efficiency of various renewable energy sources.

Distribution and Management of the Grid

The incorporation of renewable energy sources makes grid management more difficult. With digital twins' real-time grid perspective, defect detection, load distribution, and overall energy management have become more effective.

Improving Safety Procedures

Safety is a top priority in the energy business because of its crucial nature. By simulating various operational scenarios, digital twins can assist operators in identifying possible risks and developing appropriate safety protocols.

Also read: 50+ Digital Twins Use Cases You Should Know in 2024 

Source: https://faculty.ai/blog/digital-twins-in-the-energy-sector-transforming-hype-into-action/

Here are some real-life examples of digital twins in the energy sector and how the industry uses them:

1. GE Renewable Energy - Wind Farm Management

General Electric (GE) adopts digital twin technology to maximize the efficiency of wind farms. Digital wind turbine replicas allow GE to track and evaluate each turbine's efficiency in real-time. 

By doing so, they can minimize operating expenses, maximize energy output, and anticipate maintenance requirements. GE can monitor and optimize wind farms' operation by using digital twin renewable energy models.

2. Shell - Gas and Oil Company

Shell uses Digital Twins, a major player in the oil and gas sector worldwide, to enhance the management of its numerous operations. Shell is able to foresee breakdowns in machinery and enhance manufacturing procedures. 

They also simulate a variety of operational situations by implementing digital twins throughout their assets, which include oil rigs and refineries. Shell is able to improve safety in dangerous areas, decrease interruptions, and improve productivity due to their digital twin models of energy.

3. BP - Oil Field Digital Twin

BP has implemented digital twin technology to optimize and control its oil field activities. BP can track the efficiency of its equipment and forecast maintenance requirements.

Additionally, it maximizes production by digitally modeling oil wells and processing facilities. By using digital twin energy models, BP can lower operational risks, increase safety, and boost total oil extraction effectiveness.

These are some examples of digital twins in the energy sector that you can consider when implementing digital twins in your organization. 

Also read: 10 Examples of Digital Twin Technologies for Industries

Challenges Faced When Adopting Digital Twins

In the energy industry, adopting digital twins faces several significant obstacles. 

Check this out!

• Volume and complexity of data. 

Energy systems produce large volumes of data, and efficiently managing this data can be challenging. 

• Technical issues 

Several technological challenges are associated. Because many of the energy infrastructures in use today need to be updated and built for such integration This is possible by combining digital twins with legacy systems. 

• Skill gap

Current workforces in the energy sector may not necessarily possess the specific knowledge needed to create and manage digital twins.

Solutions for These Challenges 

By the way, do you want to know how to tackle these challenges? Here are its solutions.

Investing in flexible data platforms and utilizing modern analytics that can effectively handle and analyze massive data sets are crucial for addressing data management issues. 

Flexible digital twin solutions tailored to match current systems will help provide more seamless transitions. This assists in the event of integration challenges. 

A smoother integration is accomplished. It is possible through collaborating with technology suppliers knowledgeable in digital twin technologies. 

A two-pronged strategy is needed to close the skills gap: 

• Funds must be allocated to training and development programs to upskill current personnel in digital twin technologies.

• Fresh talent who possesses these specialized abilities must be drawn in. 

So if you’re looking for the best assistance in understanding digital twins and how to implement them, it is essential that you opt for the right digital twin development company. This includes giving you a clear idea of the digital twins, its benefits, the major challenges that can be faced during its implementation, and how to resolve those challenges. 

Meanwhile, by concentrating on these approaches, the energy industry may more successfully overcome the obstacles that stand in the way of implementing digital twins. Additionally, it supports improving productivity, enabling predictive maintenance, and promoting overall operational excellence.

Learn more about how to choose your digital twin development company

And it doesn’t stop there!

Artificial Intelligence and machine learning are critical to developing digital twins in the energy sector. These technologies help in the digital twin transformation. This enables us to do more complex analyses and predictions. 

Artificial intelligence enhance digital twins to independently optimize energy systems, anticipate future events, and monitor and copy physical systems. 

The use of Internet of Things (IoT) devices is another new development. The IoT and digital twins work together to improve real-time data collecting and accuracy. This resulted in more dynamic and responsive digital twin models.

Future of digital twins in the energy sector predicts it will grow in scope and connectivity. They will be essential in helping to build and run intricate, decentralized systems during the switch to renewable energy sources. Achieving more sustainability will also depend heavily on developing digital twins. This is when they will make it possible to use resources more effectively and reduce emissions. 

As technology progresses, digital twins have the potential to become a vital resource in the energy industry. This propelled efficiency and creativity to unprecedented levels.

Please read: Sustainability with Digital Twin for Environmental Conservation | Toobler 

Let's recap!

When energy firms use digital twin technology, the possibilities are almost endless. Businesses that adopt today's new technology will have a significant edge over those that don't as the energy sector continues to evolve toward a digital mindset. 

In other words, utilizing digital twin technologies can improve operating and business model resilience, value, and efficiency. Energy businesses must reinvent their workflows to avoid becoming lost in a crowded field. However, it is essential that you follow the right guide to implementing digital twins in your organization. 

Explore with Toobler if you want to revolutionize your company and gain from digital twins. Reach out to us to discover more about our offerings.