Modern power and energy systems are characterized by the wide integration of distributed generation, storage and electric vehicles, adoption of ICT solutions, and interconnection of different energy carriers and consumer engagement, posing new challenges and creating new opportunities. Advanced testing and validation methods are needed to efficiently validate power equipment and controls in the contemporary complex environment and support the transition to a cleaner and sustainable energy system. Real-time hardware-in-the-loop (HIL) simulation has proven to be an effective method for validating and de-risking power system equipment in highly realistic, flexible, and repeatable conditions. Controller hardware-in-the-loop (CHIL) and power hardware-in-the-loop (PHIL) are the two main HIL simulation methods used in industry and academia that contribute to system-level testing enhancement by exploiting the flexibility of digital simulations in testing actual controllers and power equipment.