Bridging Bytes and Carbon: The Role of AI and IoT in Driving the Twin Transition

The combination of digital intelligence with clean energy is forming the basis of a solid foundation for the future of manufacturing. This partnership is allowing industries to function more effectively while cutting down costs, all while achieving sustainability targets.

July 23, 2026. By News Bureau

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Dr. Arulkumar Shanmugasundaram

Swelect Energy Systems

Battery Energy Storage Systems

Smarter Energy Systems

Industrial Adoption

Competitive Future

The manufacturing industry today is at a turning point with two important changes: the digital and the energy transition. The combination of both affects how industries function and also make them more sustainable, efficient and cost-effective.

The Twin Transition in Manufacturing

Manufacturing is getting a new makeover with digital technologies and energy changes. AI, Internet of Things (IoT), and advanced data analytics help manufacturers make their systems better, minimise wastage, and work more efficiently. Energy transitions play a critical role to help lower cost on energy and reduce carbon footprints.

The combination of both these innovations can prove to be a necessity for all businesses going forward.

Energy Transition at the Core

India is moving forward and progressing in the energy transition space. Renewable energy capacities in India are now approximately 150 GW. 50 GW of which was developed within the last fiscal year. That shows how the country is actively using the technologies in different areas and across various sectors.

Moreover, energy transition is not about the change in energy sources, but also about cost-saving potential. Renewable energy is currently assisting companies in reducing energy expenditure making it a much more economically reasonable option than ever before.

From Intermittent to Round-The-Clock Energy

Renewable energy was traditionally used as an isolated solution. For example, solar power generation was limited to the presence of sunlight, while wind energy relied on favourable weather conditions for power production.

Now, however, Round-The-Clock (RTC) energy solutions is being introduced to the market allowing to combine different renewable sources and storage facilities. Thus, enabling constant power delivery, which may be even cheaper than traditional electricity generated by fossil fuels.

This indicates a key change, in how renewable energy and how companies use it.

Role of Battery Energy Storage Systems (BESS)
One of the things that made this big revolution possible is the progress of Battery Energy Storage Systems.

Through BESS, any surplus energy can be stored when production is high. This stored energy can be utilised during periods of low production. Thus, BESS help keep a consistent source of energy, making electricity available throughout the day using energy sources, like solar and wind power.

In addition to the benefit of consumers, it is now possible to obtain electricity costing less than INR 5 per unit. With such reduced energy costs, it has become easier for utilities to manage costs during peak demand hours.

Digital Twins and AI: Powering Smarter Energy Systems

While the development of storage technologies is addressing one of the aspects, another solution is offered by digital technologies, such as artificial intelligence (AI) and digital twins, making renewable energy more intelligent and efficient.

Digital twins are virtual models of energy sources like wind farms and solar plants which enables simulation and tracking of their activities. Coupled with an AI-driven forecast of weather conditions, it becomes possible to predict how much energy can be generated.

This information is essential to plan the further processes of energy delivery. Advanced algorithms can decide whether the energy should be delivered to customers, be stored in batteries, or sent back to the grid.

Adaptable Models for Industrial Adoption

Industries want to apply renewable energy sources and this is where adaptability has become important. Today’s companies look for energy options that fits their businesses and financial plan.

For businesses interested in renewable energy adoption, there is a need for some degree of flexibility when implementing the same. Businesses that choose to focus more on developing their infrastructure may choose to engage in Capex to invest in their projects for establishing their solar and BESS facilities. Those that may want to take a lighter approach when it comes to investment can choose to buy their electricity using PPAs whereby companies will develop and run facilities on their behalf at a fixed price per unit of power generated.

In both cases, customers benefit gain from an average savings of at least INR 1.5 per unit of power consumed. Businesses also qualify for green manufacturing initiatives, choosing this route. This helps them get into markets that prioritise sustainability.

Building a Competitive Future

The combination of digital intelligence with clean energy is forming the basis of a solid foundation for the future of manufacturing. This partnership is allowing industries to function more effectively while cutting down costs, all while achieving sustainability targets.

This twin transition is not merely a matter of technological advancement, but also of rethinking energy itself- from its generation to distribution and consumption. As digital intelligence develops further in the form of AI and IoT, as well as through energy storage systems, sustainable energy is becoming a tangible possibility.

With industries developing, the capacity to merge digital data with carbon emissions will mark the next stage of their evolution- one that is not only smarter but also greener.

- Dr. Arulkumar Shanmugasundaram, MD & CEO, SWELECT Energy Systems