Transforming nano grids to smart grid 3.0: AI, digital twins, blockchain, and the metaverse revolutionizing the energy ecosystem

This review explores the transformative architecture of Smart Grid 3.0 by integrating cutting-edge technologies. It presents novel architectural frameworks to transform nanogrid, microgrid, and VPP topologies to their Grid 3.0 counterparts. This study systematically analyzes the application of advanced algorithms and technologies across all hierarchical subsystems—nanogrid 3.0, microgrid 3.0, VPP 3.0, and Smart Grid 3.0. These digital technologies have transformative capabilities. The digital twins can perform real-time monitoring, simulation, and predictive analysis; blockchain ensures secure, decentralized energy transactions; and the metaverse creates immersive, interactive environments for system management. This review also explores the role of AI in power grid which is to optimize energy scheduling, fault detection, and energy management. This paper adds to the literature by systematically addressing subsystems of Smart Grid 3.0, including energy generation, transmission, distribution, communication, and storage. Challenges such as interoperability, scalability, data integrity, and cybersecurity are discussed, and solutions are proposed which highlights the need of interdisciplinary approach. These include cyber-attack detection and mitigation mechanisms, advanced simulation tools, and robust policy frameworks. A thorough review of literature enabled this paper to present practical implementation strategies and real-world examples of digital technologies integrated smart grids. By integrating these technologies across hierarchical energy systems, this study establishes a foundation for future research in transforming conventional smart grid infrastructure into a resilient, efficient, and interconnected cyber-physical energy network called Smart Grid 3.0 as the peak of this evolution so far.