Digital twins represent a transformative innovation for battery energy storage systems (BESS), offering real-time virtual replicas of physical batteries that enable accurate monitoring, predictive analytics, and advanced control strategies. These capabilities promise to significantly enhance system efficiency, reliability, and lifespan. Yet, despite the
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Digital twins represent a transformative innovation for battery energy storage systems (BESS), offering real-time virtual replicas of physical batteries that enable accurate monitoring, predictive analytics, and advanced control strategies. These capabilities promise to significantly enhance system efficiency, reliability, and lifespan. Yet, despite the clear technical potential, large-scale deployment of digital twin-enabled battery systems faces critical governance barriers. This study identifies three major challenges: fragmented standards and lack of interoperability, weak or misaligned market incentives, and insufficient cybersecurity safeguards for interconnected systems. The central contribution of this research is the development of a comprehensive governance framework that aligns these three pillars—standards, market and regulatory incentives, and cybersecurity—into an integrated model. Findings indicate that harmonized standards reduce integration costs and build trust across vendors and operators, while supportive regulatory and market mechanisms can explicitly reward the benefits of digital twins, including improved reliability, extended battery life, and enhanced participation in energy markets. For example, simulation-based evidence suggests that digital twin-guided thermal and operational strategies can extend usable battery capacity by up to five percent, providing both technical and economic benefits. At the same time, embedding robust cybersecurity practices ensures that the adoption of digital twins does not introduce vulnerabilities that could threaten grid stability. Beyond identifying governance gaps, this study proposes an actionable implementation roadmap categorized into short-, medium-, and long-term strategies rather than fixed calendar dates, ensuring adaptability across different jurisdictions. Short-term actions include establishing terminology standards and piloting incentive programs. Medium-term measures involve mandating interoperability protocols and embedding digital twin requirements in market rules, and long-term strategies focus on achieving global harmonization and universal plug-and-play interoperability. International examples from Europe, North America, and Asia–Pacific illustrate how coordinated governance can accelerate adoption while safeguarding energy infrastructure. By combining technical analysis with policy and governance insights, this study advances both the scholarly and practical understanding of digital twin deployment in BESSs. The findings provide policymakers, regulators, industry leaders, and system operators with a clear framework to close governance gaps, maximize the value of digital twins, and enable more secure, reliable, and sustainable integration of energy storage into future power systems.
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