Powering the future: Overcoming challenges with grid digitalisation and DER management

The power grid faces unprecedented challenges due to the integration of distributed energy resources (DER), the rise of electric vehicles and the changes in consumer consumption trends.

This increasingly changing power grid paradigm poses great challenges for the growth of power grid infrastructure and brings forward the need for innovative solutions.

Traditional grid expansion approaches, such as infrastructure reinforcement, are no longer optimal due to the disparity between forecasts and reality.

This article explores the limitations of current strategies and proposes a solution based on grid digitalisation — Federated Distributed Energy Resources Management System (Federated-DERMS), which offers a decentralised approach to grid management, optimising operations and overcoming the hurdles posed by the evolving energy landscape.

Power grid infrastructure growth challenges

Traditional approaches, mainly focused on infrastructure reinforcement or equipment replacement, struggle to keep pace with the dynamic changes in the energy landscape.

The integration of distributed energy resources (DER), which doubled between 2004 and 2021 and will continue to grow in the upcoming years due to governmental policies and objectives, such as the European Union’s (EU) active net zero carbon emissions by 2050, coupled with the rapid adoption of electric vehicles and the shift from consumer to prosumer, has led to a significant disparity between the current estimation methods and the evolving reality.

To bridge this gap, a paradigm shift toward grid digitalisation may be a suitable path to follow.

Traditional grid reinforcement-based approach, driven by decisions based on load simultaneity factors and worst-case future scenarios, may no longer be efficient for grid reinforcement planning, as new uncertain variables such as knowing where and when DERs are going to be installed.

In addition, the evolution from consumers to prosumers, elastic to electricity prices and capable of injecting power into the grid, further complicates the equation.

Instead of trying to invest in grid reinforcements under this high uncertain scenario, the solution lies in non-wire alternatives (NWA) such as grid digitalisation, entailing investments in edge computing (IoT) and innovative software architectures.

This dual investment is the fittest for optimal exploitation of information generated by edge devices, providing a pathway to a more adaptive and efficient grid.

Operational challenges for DSOs

Following the current trends in the network paradigm shift, DSOs will need to be able to operate a greater number of devices.

On the one hand, this is positive, as they will have more tools to optimise network exploitation. On the other hand, it will mean there is a greater number of variables to optimise.

This implies that to solve optimisation problems in the same way as it is currently done (centralised control), the operator will require greater computational power.

Moreover, with the increase in uncertainties associated with both generation and demand, primarily due to renewable generation, electric vehicle charging schedule, and consumers’ behaviour with their variable loads, network operation has become more complex.

Following a grid digitalisation approach, the deployment of smart meters and IoT edge devices will cause a considerable increase in the volume of data for DSOs to manage.

This implies that centralised management architectures, where all data flows from devices to the central hub, will require greater robustness and computational power capable of handling both the data volume and the variables to be optimised in acceptable timeframes for operation while ensuring system’s quality of service.

Maintaining this type of network control architecture over time can become inefficient, as the investment in computational power may reach considerable figures. To address this challenge, one of the possible courses of action is proposed in the next section.

Federated-DERMS as a solution

In response to the pressing challenges faced by power grids, a transformative solution emerges — the Federated Distributed Energy Resources Management System.

This innovative software architecture is defined by the National Renewable Energy Laboratory (NREL) as FAST-DERMS and offers a decentralised approach to grid management.

As Figure 1 portrays, a Federated-DERMS strategically divides the grid into areas controlled by individual DERMS systems (the Flexibility Resource Scheduler in Figure 1), each equipped with personalised microservices tailored for optimal grid operation of their control region.

Federated-DERMS operates with a central coordinator communicating seamlessly with all DERMS systems across the grid.

Each local DERMS, armed with personalised microservices, undertakes specific tasks to optimise its control area. These tasks may include precise load forecasting, economic dispatch of DERs in the local market and hosting capacity calculations in order to accomplish forecasting, planning and operation tasks efficiently and effectively.

Importantly, all local DERMS systems collaborate, sharing data and insights with each other and the central coordinator to achieve close-to-optimal grid operation.

Therefore, applying this architecture brings improvements both at a general and local level.

On a general scale, it achieves a reduction in the number of signals directly exchanged with the central coordinator, as the managers of each zone will send condensed information received. This implies that the computational power required to manage the entire volume of data will be reduced due to the distribution of data handling among zone operators.

On the other hand, at the local level, the deployed microservices can be specifically configured to address operation, control, or planning issues in the controlled area with greater precision, thereby enhancing overall network management.

Conclusion: Embracing innovation for a resilient future.

About the authors

Daniel Palomo, Business Development Manager Grid Control, Minsait, is responsible for grid control products as well as the launch to the market of new control and real time products. In addition, he has worked for strategic projects deploying IoT edge technologies, SCADA in the cloud, DER flexibility and FLISR implementation.

Juan Menendez-Pidal, Real Time Control System Expert, Minsait, is an expert in implementation of management, operation and optimisation solutions for electrical distribution networks for DSOs and research centres. He also is actively working on R&D projects for the development of new products that promote the energy transition.

About Minsait

Minsait, an Indra company (www.minsait.com), is a leading firm in digital transformation and information technologies in Spain and Latin America. Minsait possesses a high degree of specialisation and knowledge of the sector to focus its offering on high-impact value propositions, based on end-to-end solutions. Its capabilities and leadership are demonstrated in its product range, under the brand Onesait, and its across-the-board range of services.

About Indra

Indra (www.indracompany.com) is one of the leading global technology and consulting companies and the technological partner for core business operations of its customers worldwide. Its business model is based on a comprehensive range of proprietary products, with a high-value, end-to-end focus and with a high innovation component. In the 2022 financial year, Indra achieved revenue totaling €3,851 billion with almost 57,000 employees with a local presence in 46 countries and business operations in over 140 countries.