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Digital Twins in Utilities: Managing Power Plants in the New Digital Reality

An IoT Solution for Water Loss
7 minute read

Aug 12

Staff Writer

Sand Technologies

Managing Director, Utilities - Americas

Sand Technologies

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The modern power plant is a marvel of engineering, a sprawling network of complex machinery and systems working in concert to keep our world energized. But this intricacy also means the risks are enormous and the outcomes are critical. Managing these vital assets has traditionally been a reactive process, fraught with the potential for catastrophic failures and costly downtime. Power outages incur an annual cost of at least $150 billion for American businesses, as reported by the Department of Energy.

A groundbreaking technological convergence is shifting that paradigm. The integration of digital twins in utilities with artificial intelligence (AI) is revolutionizing power plant management, enabling operators to simulate complex scenarios, predict maintenance needs with unprecedented accuracy and optimize overall performance in a completely risk-free environment.

Digital twin is
not a futuristic fantasy;
it is a practical and powerful tool that is actively reshaping the utility sector.

What is a Digital Twin?

So, what exactly is a digital twin? It is far more than a simple 3D model or a blueprint. A digital twin is a comprehensive, dynamic and data-rich virtual replica of a physical power plant that mirrors its real-world counterpart in near real-time. This virtual clone is brought to life by a constant stream of data from a vast network of industrial Internet of Things (IoT) sensors installed on the physical assets, and a foundation built with years of SCADA data. These sensors monitor a wide range of parameters in real-time, including the temperature of a turbine, the vibrational frequency of a transformer, pressure levels and energy output. This data is continuously fed into the virtual model, ensuring that the digital twin isn’t just a static representation, but a “living” simulation that evolves, ages and behaves exactly as the physical plant does.

Digital Twin Applications for Utilities

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AI-Driven Preventive and Predictive Maintenance

Safely Simulate Operations for Optimal Performance

Utility Vegetation Management

Application 1: AI-Driven Preventive and Predictive Maintenance

A highly impactful and immediate application of digital twin technology is in preventive and predictive maintenance. Historically, power plants have operated on a model of reactive or scheduled maintenance, fixing components only after they break or based on a fixed timetable, regardless of their actual condition. This approach leads to expensive, unexpected downtime and often results in replacing parts that still have significant operational life.

The digital twin upends this model. AI algorithms constantly analyze the torrent of data flowing from the physical plant into its virtual counterpart. By learning the normal operational parameters of every component, AI can detect subtle anomalies—a slight increase in a turbine’s temperature, a minuscule change in a transformer’s vibration—that are invisible to human operators. These deviations serve as early warning signs, enabling the AI to predict potential failures weeks or even months in advance. These early warnings facilitate a shift from costly, schedule-based maintenance to a highly efficient, as-needed predictive strategy, extending equipment life, preventing catastrophic failures and dramatically reducing operational costs.

Application 2: Safely Simulate Operations for Optimal Performance

Testing new operational strategies on a live power plant is an inherently risky, if not an impossible, proposition. How would the plant react to a sudden spike in grid demand? What is the most efficient fuel mix under current market conditions? Answering these questions through physical experimentation could jeopardize the plant, its personnel and the stability of the power grid.

The digital twin provides the perfect solution: a high-fidelity sandbox. Within this virtual environment, operators can run limitless simulations and “what-if” scenarios without any physical consequences. They can stress-test the system to identify potential bottlenecks, experiment with different operational protocols to maximize output and train staff on emergency procedures. This ability to test, learn and optimize in a virtual space enables plant managers to identify the most efficient, safe and profitable operational strategies, ensuring the plant operates at peak performance.

Application 3: Utility Vegetation Management

AI is revolutionizing how an electric utility manages vegetation along power line corridors by transforming the process from a manual, reactive effort into a data-driven, proactive science. Instead of relying solely on slow and expensive ground patrols, utilities now use AI to analyze vast amounts of unstructured data from high-resolution satellite imagery, drones and LiDAR (Light Detection and Ranging) sensors. These AI systems can automatically identify tree species, measure their height and density and calculate their precise distance from electrical wires across the entire grid. This information creates a dynamic, digital map of the environment, allowing utilities to pinpoint potential problem areas with a level of accuracy and speed that was previously unattainable.

Building on this comprehensive data, AI’s true power lies in its predictive capabilities. Machine learning models analyze the collected imagery, along with historical growth rates, weather patterns and topographical data, to forecast future “hot spots” where vegetation is likely to cause an outage or spark a wildfire. This insight enables utilities to transition from inefficient, fixed-cycle trimming schedules to a targeted, risk-based approach. By predicting which specific trees pose the greatest threat, utilities can allocate resources more effectively, dispatch maintenance crews with precision and mitigate potential hazards long before they become critical, ultimately improving grid reliability, reducing costs and increasing safety.

Comprehensive Modeling

Digital twins act as a single source of truth, ensuring that planning, design and operational models align across different departments within the utility. As such, they can model various behaviors, including grid components such as transformers, poles and capacitor banks, thereby predicting potential failures and optimizing maintenance schedules. A proactive approach to maintenance reduces downtime and extends the lifespan of critical assets.

Digital twins also provide a solid foundation for planning and risk management. By simulating various operational scenarios and responses to events such as power outages or demand surges, digital twins enable utilities to optimize grid performance and plan for future needs. For example, a water utility utilized a digital twin to manage risk, resulting in a reduction of leaks and service interruptions.

This level of planning involves assessing the impact of new trends, such as electric vehicles and distributed energy resources, on the overall system. Moreover, digital twins serve as effective simulators of cyberattacks or wildfire scenarios, enabling the assessment of vulnerabilities and enhancing grid resilience. They can also model the socio-economic impacts of events like Public Safety Power Shutoffs (PSPS).

Resilient Power for the Future

The digital twin is not a futuristic fantasy; it is a practical and powerful tool that is actively reshaping the utility sector. By creating a living, virtual replica of physical infrastructure, this technology mitigates risk, transforms maintenance from a reactive to a predictive science, and unlocks new levels of operational efficiency. Digital twins represent a significant shift in how utilities manage their most critical assets. As AI becomes more sophisticated, the capabilities of digital twins will continue to expand, ushering in a future of smarter, safer and more resilient power generation for years to come.

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