Global challenges related to sustainable development are increasingly focusing on the use of digital twin technology as a universal tool for optimizing and monitoring renewable energy installations. This article discusses digital twin technology as a support for sustainable development based on the analysis of microgrid structures. Digital twins allow the creation of virtual models of physical systems. This capability facilitated the accurate replication of the microgrid model at Kielce University of Technology using ETAP (Electrical Transient Analyzer Program) software (version 22.5). The operational parameters of the microgrid structure were analyzed for the examined power range of the photovoltaic installation to determine the possibilities of expanding the existing installation. The impact of the photovoltaic installation’s power on the operational parameters of the microgrid structure was visualized, and final conclusions were formulated. Moreover, the integration of digital twin technology into renewable energy systems not only enhances operational efficiency but also plays a pivotal role in advancing sustainability objectives. Through real-time monitoring and predictive maintenance, digital twin technology facilitates the optimization of energy production and distribution, thereby reducing waste and contributing to the overall sustainability of energy systems. This technology enables the simulation of various scenarios, such as fluctuations in energy demand or the integration of new renewable sources, which can inform more sustainable decision-making processes. In the context of microgrids, digital twin technology ensures that energy production is closely aligned with consumption patterns, minimizing energy losses and enhancing grid resilience. Furthermore, digital twin technology supports the sustainable expansion of renewable installations by providing detailed insights into potential environmental impacts and the long-term sustainability of various energy configurations. As the demand for clean energy continues to grow, digital twin technology will be indispensable in achieving a balance between energy needs and environmental stewardship, ensuring that the expansion of renewable energy sources contributes positively to global sustainability objectives.