Electricity consumers face challenges in selecting an optimal energy-saving plan, and this is a sustainability problem. To set consumers focus on sustainable energy management, developments around ”Industry 4.0” are needed to achieve an optimal balance between cost and energy consumption with a focus on cutting-edge machine-learning models and smart services introduction. Energy modelling is crucial for confronting the challenges introduced by the energy transition. This research is to promote digital twin (DT) technology in smart energy grids. The hybrid digital twin model is developed based on smart grid end-users’ electrical components. This approach emulates the component specification of the reference smart grid system and encourages a reduction in net energy consumption. Additionally, the application of AI connects smart meters, IoT devices, and the assets of the smart grids to the DT recreation of demand-side end-users for energy efficiency recommendation provision; this setup improves energy management, energy efficiency, and the usage of renewable energy resources. The novelty of this study is that the recent scope of demand-side recommendation schemes has been extended in the direction of cutting-edge Industry 4.0 hybrid DTs. Additionally, a prototype system and its functional characteristics have been proposed with the potential to pave the path for utilization in microgrid environments. Simulation results show a unique level of parallelism between the reference system and the developed model, along with a 36.8% reduction in net energy consumption following implementation of the recommendation advice.