Utility operators: The time to integrate DERMS is now

Utility operators may not yet fully understand the benefits of distributed energy resource management systems (DERMS), but new, diverse classes of distributed energy resources (DERs) are being brought online faster than ever, writes Andy Bennett, CEO of mPrest, Inc.

The momentum for adopting these behind-the-meter technologies — from water heaters to EVs to solar + storage systems — will continue as consumers pursue more sustainable ways of living and the renewable energy industry gets legislative and regulatory boosts.

AI-powered solutions like DERMS can make it easier for utilities to bring these resources online, integrate them with existing platforms and scale their operations to realise meaningful benefits for their customers and the grid as a whole. With the cost of electricity from renewable sources falling rapidly, utilities should be running to find quick and efficient ways to bring these resources into their grids. So why are so many operators hesitating to integrate DERMS?

Let’s debunk a few of the common barriers to adoption and offer best practices for introducing DERMS.

DERMS reimagine the pilot phase

One big reason utility decision-makers stall on projects that introduce platforms like DERMS is concern over getting stuck in the pilot phase. The past two decades have provided countless promising clean energy innovations. Utilities looking to decarbonise and stabilise their infrastructure flocked to these technologies, pumping billions into pilot projects with high expectations. Of course, not all of these programmes have come to fruition. We’ve all likely heard horror stories of lost investments, pilots that never took off due to poor customer adoption, or were put on the back burner in favor of emergency infrastructure repairs.

With a DERMS, operators can forget what they know about the old school pilot process. A minimal viable product (MVP), such as a multi-home virtual power plant (VPP), can be tested in real-time using a DERMS. By assessing the successful integration and management of a single grid-connected asset, as large whether as large as a VPP or as small as a water heater, using DERMS a utility can use the gathered insights to scale and adjust future programmes from there.

This is the advantage of DERMS over traditional platforms like advanced distribution management systems (ADMS) and SCADA. These legacy grid orchestration systems must be reworked entirely to integrate large numbers of new sources of generation, bringing in additional cost concerns for the utility operator. Conversely, after a successful trial with an MVP, a utility can bring additional DERs online quickly and easily and even respond to adverse events without making large-scale digital infrastructure changes, all the while improving customer experience and bolstering the grid’s stability.

DERMS can be catered to your local market

Utility operators not currently employing large numbers of DERs will likely overlook DERMS, believing they don’t have the need for these systems or that their regulatory market isn’t ready. This approach is counterintuitive. DERMS must be viewed as a forward-looking solution, an investment into a utility’s future. Enterprise-wide systems like ADMS are incredibly difficult to upgrade or alter once in place and shouldn’t be considered a long-term solution, particularly in markets where regulations are likely to change and DER adoption could increase over time.

With a DERMS, utility operators can encourage customers to be active energy prosumers by opening up their system to the integration and management of DERs. This is possible thanks to the AI-powered decision-making and visibility these systems provide. Operators can address challenges on the grid without disrupting the entire system, isolate individual DERs to solve problems and introduce new sources of renewable generation seamlessly. The back-end integration capabilities of today’s DERMS are unmatched.

DERMS respond to innovation and demand

Concern over disrupting an existing grid-orchestration system and losing the ability to react to shifts in customer demand keep many operators from adopting DERMS. Again, this is a flawed way of thinking. ADMS and other systems are unable to manage new DERs coming online in real-time and they aren’t well-suited to managing hundreds of thousands of individual DERs participating in multiple energy programmes. Despite these reasons, many operators try to wait for the right time or right volume of DERs before introducing a DERMS to their infrastructure. This approach could leave them waiting for years, all the while their grid is becoming less efficient and more unstable in the face of increased DER adoption.

With the help of automated algorithms and AI, introducing DERMS to a system becomes a much less disruptive process. These technologies are also poised to provide long-term value and flexibility, capable of analysing usage patterns and local demand to ensure all assets are being used efficiently and seamlessly. The data gathered over time enables DERMS to learn from the market, customer activity and new classes of DERs, maximising a utility’s investment over a longer period of time.

DERMS address and solve many of the challenges that grid operators cite when deferring their installation. Utilities must begin to look at DERMS as long-term investments that offer flexible, end-to-end solutions for technology integration. DERMS can usher in a new era of decarbonisation, stabilisation and improved customer experience for utilities on a global scale.

About the author

Andy Bennett is CEO of mPrest, Inc., a developer of world-leading distributed asset orchestration and optimisation software.