Digital twin simulation, a technology that creates virtual replicas of power facilities and their control systems, is experiencing a major resurgence as utilities grapple with new challenges from renewable energy expansion, AI infrastructure growth, and global electrification. What was once primarily a training tool for operators is now evolving into a permanent engineering and operational asset that helps teams test systems, validate designs, and prepare for complex grid interactions before they happen in the real world.

What Are Digital Twins and Why Do Power Companies Need Them Now?

A digital twin is essentially a mathematical model that behaves exactly like a real power facility. The control system software interfaces with this virtual replica as if it were operating the actual plant, allowing engineers and operators to run experiments, test new strategies, and train personnel without any risk to live infrastructure. The technology has been around for decades, originally developed to improve operator training after industry incidents highlighted the importance of preparedness.

The modern version looks radically different from those early systems. Instead of requiring rooms full of specialized hardware and proprietary equipment, today's digital twins run on cloud servers and virtualized environments. This shift has democratized access, allowing geographically distributed teams to collaborate on the same simulation, update models in real time, and scale computing power up or down as needed.

The timing of this resurgence is no accident. Power grids are facing unprecedented complexity. Renewable energy sources like solar and wind generate far more system-to-system interactions than traditional thermal plants, and equipment from different manufacturers must communicate seamlessly through various network protocols. Meanwhile, the explosive growth of AI data centers is creating new, unpredictable demand patterns that utilities must accommodate while maintaining grid stability.

How Are Digital Twins Being Used Across the Power Industry?

Modern digital twins have expanded far beyond operator training. Organizations are now using them throughout a facility's entire lifecycle, including:

• Engineering Design: Teams use digital twins to test system designs and catch integration errors before construction begins, reducing costly mistakes during startup.
• Control Strategy Development: Engineers can develop and validate new operational strategies in a risk-free environment before deploying them to live systems.
• Network Communication Testing: Advanced digital twins now simulate actual Ethernet and networked input/output signals, allowing teams to test register maps and protocol changes offline, making invisible network issues obvious before they cause outages.
• Pre-Startup Validation: New facilities can be thoroughly tested in simulation before going live, ensuring everything works as designed.
• Ongoing Scenario Analysis: Utilities can continuously test how their systems respond to changing grid conditions, renewable integration, and unexpected events.

This shift transforms digital twins from temporary project tools into permanent assets that grow more valuable over time as they accumulate operational data and insights.

Why Renewable Energy Is Driving Digital Twin Adoption?

Renewable energy facilities present unique simulation challenges that make digital twins essential. Traditional thermal plants require significant manual operator intervention, making them straightforward to train for. Renewable facilities, by contrast, require fewer manual actions but generate vastly more complex system-to-system interactions.

In a solar or wind facility, equipment from multiple original equipment manufacturers must communicate through various protocols including Modbus, DNP3, IEC61850, and IEC60870-104, among others. Getting all the input/output lists correct during a project is challenging, and maintaining them across system changes is even harder. Documentation alone often fails to catch integration errors that only become apparent when systems actually run together.

This is where advanced digital twins with smart grid extensions prove invaluable. By simulating actual network communications, not just analog signals, engineers can test register maps, protocol changes, and communication paths offline. Network issues that are nearly invisible on paper become obvious when the simulated system executes, allowing teams to engineer faster and operate with higher confidence that what works in the digital twin will also work in the live environment.

What Does This Mean for Grid Reliability as AI Demand Grows?

The convergence of renewable energy expansion and AI infrastructure growth is creating unprecedented pressure on power grids. Vietnam's experience offers a concrete example of how utilities are responding. The country is experiencing robust economic growth and substantial foreign direct investment, with electricity demand projected to grow at an annual average rate of 7.2% through 2034.

To meet this demand, Vietnam is deploying advanced natural gas infrastructure alongside renewable energy and planned nuclear capacity. The country's Nhon Trach 3 and 4 power plant expansion, which entered commercial operation in December 2025, demonstrates how utilities are balancing the "energy trilemma" of capacity, efficiency, and sustainability. The two new units deliver 1.6 gigawatts of dependable baseload and flexible generation capacity, achieving over 63% combined cycle efficiency, placing them among the world's most efficient power plants.

"This project is a true first for Vietnam, as the country's first HA-powered plant and its first LNG-fired facility. For Vietnam, it marks an important step in the evolution of the national energy mix, demonstrating the role that highly efficient gas power can play in supporting grid reliability, enabling renewable energy integration, and accelerating the transition away from coal," said Ramesh Singaram, President and CEO of GE Vernova's Gas Power business in Asia-Pacific.

Ramesh Singaram, President and CEO of GE Vernova's Gas Power business in Asia-Pacific

As utilities like PetroVietnam Power deploy these advanced facilities, digital twins become critical tools for managing the complex interactions between baseload generation, renewable sources, and the emerging demand from AI data centers. The ability to test how systems respond to rapid load changes and unexpected grid conditions is no longer optional; it's essential for maintaining reliability.

The power industry's rediscovery of digital twin technology reflects a fundamental shift in how utilities approach grid management. What began as a training tool has evolved into a foundational platform for operations, engineering, and grid integration in an era of rapid technological change and growing energy demand.