Apart from conventional centralized control and administration, power systems entered the smart grid era, whilst the burgeoning Industry 4.0 demanded production and distribution in terms of digital data exchange and IoE (Internet of Everything)-based platforms. The usage of a digital twin in power system operation is an advanced version of IIoT (Industrial Internet of Things). In terms of a more secure and dependable grid network, interconnected cloud architecture and online remote administration provide effective vulnerability management. Yet, to fully exploit the promise of digital twin technology in the electric grid, a conceptual framework is required to define the critical parts and procedures involved in constructing and deploying a digital twin system. A conceptual framework based on systems engineering approaches is proposed in this paper which takes the electric grid's particular characteristics, such as system complexity, the necessity for real-time surveillance and control, and the significance of security and dependability into consideration. Accelerating the adoption of digital twin technologies in the electric grid can be made viable through the establishment of a well-defined and comprehensive development framework. This approach will contribute to the realization of a power system that is characterized by enhanced stability, efficiency, and sustainability. Considering the issue to be a multivariable optimization problem, a systems engineering approach is chosen based on component-based modeling, overall system configuration, and functional analysis.