From pipelines that flag their own weaknesses to wind turbines that simulate performance under storm conditions, digital twins are changing how energy and utilities leaders manage assets. These dynamic, virtual replicas of physical infrastructure are not just a technology trend. They’re becoming essential for operating in a world where efficiency, resilience, and sustainability are non-negotiable.
At its simplest, a digital twin is a living, digital model of a physical asset, system, or process that uses real-time data and advanced analytics to mirror and predict how that asset will perform.
The shift is already underway. Gartner predicts that by 2030, nearly 70% of asset-intensive organizations will use digital twins across their operations. For an industry with billions of dollars tied up in physical assets, the implications are enormous.
So what’s driving adoption, and where should leaders focus their attention?
Unlike traditional asset monitoring systems, digital twins don’t just collect data—they simulate how assets behave under real-world conditions. By combining IoT sensors, machine learning, and real-time analytics, they provide a constantly updated, predictive model of equipment, facilities, or even entire grids.
That means leaders can:
In short: digital twins turn asset management from reactive to proactive.
Unplanned downtime is one of the biggest costs in the energy and utilities sector. A single equipment failure at a refinery or power plant can cost millions in lost output and emergency repairs. Digital twins, fed by sensor data, can forecast degradation and suggest targeted interventions—preventing failures before they cascade.
Case in point: A European utility piloted digital twins on its wind turbines and reduced maintenance costs by nearly 30% while increasing annual energy production (World Economic Forum).
Utilities often operate infrastructure designed decades ago. Digital twins help model how assets perform under new operating loads, environmental stresses, or retrofits. This allows leaders to stretch the useful life of expensive assets while ensuring safety and compliance. Think of it as “test driving” different strategies without ever taking equipment offline.
Field crews and operators can interact with digital replicas to train on emergency scenarios, practice complex repairs, or test new workflows. Instead of relying on static manuals or high-risk live training, digital twins create immersive, risk-free environments that accelerate workforce readiness. This is especially powerful in an industry facing a skilled-labor shortage.
Should you replace a turbine, refurbish it, or run it to failure? Digital twins provide the insights to make high-stakes investment decisions with greater precision. Leaders can compare ROI under different operating scenarios, helping prioritize where capital should flow. The result: better asset utilization and reduced stranded costs.
Regulators and customers alike are demanding greener operations. Digital twins can track emissions, energy efficiency, and water usage in real time providing transparency and accountability. Some utilities are even linking their twin environments directly to ESG reporting dashboards, turning compliance from a manual process into an automated one.
Digital twins aren’t just a tool for engineers. They represent a new way of managing risk, growth, and innovation across the business.
Outages and disruptions can be anticipated and minimized.
Maintenance and capital allocation shift from guesswork to evidence-based.
Leaders can test strategies digitally before making billion-dollar bets.
Progress toward net-zero targets can be tracked and optimized in real time.
The organizations that succeed won’t be those that treat digital twins as an IT project. They’ll be the ones that embed them into strategic decision-making across the enterprise.
Leaders don’t need to “twin” every asset at once. The most effective strategies begin small and scale deliberately:
Energy and utilities leaders face mounting pressure: aging infrastructure, shifting demand, new regulatory mandates, and the transition to renewables. Digital twins offer a way to navigate this complexity with clarity.
They’re not a silver bullet, but they are a multiplier—unlocking greater efficiency, resilience, and sustainability from assets that define the backbone of our energy future.
The question for leaders is no longer “What is a digital twin?” but “Where can digital twins create the most impact in my operations today?”