5-minute read
The following article is excerpted from our webinar “Harnessing the power of DERMS: Enhancing the grid’s flexibility and reliability,” now available on demand. Click here to access the webinar replay and learn more about how DERMS contributes to a more resilient, sustainable electricity grid.
The energy landscape is undergoing a transformative shift as distributed energy resources (DERs) like solar panels, wind turbines, battery storage, and electric vehicles continue to grow in adoption. These technologies are empowering utilities and consumers alike to play active roles in energy production, storage, and usage. As a result, DERs are driving the transition toward cleaner, more sustainable energy systems.
However, this decentralization brings its own challenges. The variability of renewable energy generation, coupled with the growing number of DERs, creates complexities in balancing supply and demand. Traditional grid management systems, designed for centralized energy sources, often struggle to accommodate the dynamic and decentralized nature of DERs. Utilities are now tasked with finding ways to ensure reliability, stability, and efficiency in an evolving grid environment.
This is where distributed energy resource management systems (DERMS) come into play. DERMS are advanced software platforms designed to help utilities monitor, optimize, and control DERs, enabling seamless integration of these resources into the grid. By addressing the challenges of variability and decentralization, DERMS contribute to a resilient and sustainable grid that can meet the demands of the future.
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WEBINAR
Harnessing the power of DERMS: enhancing the grid’s flexibility and reliability
What is DERMS?
A distributed energy resource management system is a software platform designed to monitor, control, and optimize DERs in real time. By providing utilities with the tools to manage these diverse and dispersed resources, DERMS facilitate the efficient integration of DERs into the electrical grid.
Integration with existing grid infrastructure is a critical function of DERMS. By interfacing with systems such as advanced distribution management systems (ADMS), supervisory control and data acquisition (SCADA), and advanced metering infrastructure (AMI), DERMS enable dynamic balancing of supply and demand. This integration allows for real-time adjustments to grid operations, ensuring stability and reliability even as the penetration of DERs increases.
DERMS support a wide array of DER technologies, including:
- Rooftop solar panels: Managing the variability of solar energy generation
- Wind turbines: Integrating wind energy into the grid efficiently
- Battery storage systems: Optimizing charging and discharging cycles to support grid needs
- Electric vehicles: Coordinating EV charging to prevent grid congestion and utilizing vehicle-to-grid (V2G) capabilities
- Smart appliances: Controlling demand-side resources to enhance grid flexibility
Key features of DERMS
DERMS provide utilities with powerful tools to ensure the efficient integration of distributed energy resources into the grid. Among their most critical capabilities are visibility, control, and optimization, each of which addresses unique challenges posed by decentralized energy systems.
Visibility
One of the foundational features of DERMS is the ability to deliver real-time insights into the performance, location, and status of DERs. Utilities gain a complete, up-to-the-minute picture of how and where DERs are operating across the grid.
Example: During peak hours, DERMS can monitor energy production from rooftop solar panels, identifying output levels and determining whether additional resources are needed to meet demand.
Control
DERMS empower utilities to dynamically adjust or curtail DER activity to stabilize the grid in response to fluctuating supply and demand. This feature allows grid operators to respond quickly to conditions like demand surges or generation shortfalls, ensuring grid reliability.
Example: During periods of high demand, DERMS can activate energy stored in home batteries to reduce strain on the grid. Conversely, it might limit renewable energy inputs temporarily if excess generation threatens grid stability.
Optimization
With advanced algorithms, DERMS optimize the operation of DERs to ensure they contribute to grid reliability while remaining cost-effective and environmentally sustainable. Utilities can balance financial, operational, and environmental priorities to maximize the value of DERs.
Example: Electric vehicle charging can be scheduled during off-peak hours when electricity demand is lower, preventing strain on the grid while reducing costs for both utilities and consumers.
Why DERMS are essential for modern utilities
Grid stability
DERMS play a critical role in maintaining grid reliability by dynamically integrating growing numbers of DERs without causing instability. By balancing supply and demand in real time, DERMS ensure that even with increased variability from distributed resources, the grid operates smoothly.
Renewable energy integration
The variability of renewable energy sources like sunlight and wind requires advanced tools to manage fluctuations. DERMS optimize the use of renewables by adjusting operations to align with real-time generation patterns, ensuring efficient utilization of clean energy while avoiding disruptions.
Customer engagement
DERMS empower consumers to participate actively in energy markets, creating a more dynamic and inclusive grid ecosystem. Homeowners with rooftop solar or EVs can contribute to grid operations by storing energy during low demand and feeding it back to the grid during peak times.
Cost efficiency
By leveraging existing DERs, utilities can minimize the need for expensive infrastructure upgrades. DERMS make it possible to use distributed resources for tasks traditionally handled by centralized systems, reducing capital expenses and optimizing operational costs.
The future of grid management with DERMS
DERMS are poised to play a pivotal role in shaping the future of energy systems, empowering utilities to meet evolving challenges and achieve ambitious objectives.
Supporting long-term energy goals
As the push for sustainability accelerates, DERMS are instrumental in helping utilities reach critical milestones like net-zero emissions and greater renewable energy adoption. By efficiently integrating clean energy resources, DERMS enable utilities to transition away from fossil fuels while maintaining grid reliability.
Adapting to regulatory requirements and market pressures
With increasing regulations and heightened consumer expectations, utilities must evolve to remain competitive and compliant. They provide the flexibility needed to meet mandates like renewable energy portfolio standards, FERC Order 2222, and decarbonization goals. Utilities can respond quickly to changing regulations, market dynamics, and customer demand for cleaner energy options.
Enabling emerging trends
DERMS unlock advanced capabilities that will define the next generation of energy systems, including:
- Virtual power plants (VPPs): By aggregating DERs into dispatchable power sources, VPPs enhance grid reliability and optimize renewable energy use.
- Vehicle-to-grid technology: DERMS enable EVs to act as mobile storage units, supplying energy back to the grid during peak demand periods.
Ready to learn more? Click here to watch the on-demand replay of our webinar “Harnessing the power of DERMS: Enhancing the grid’s flexibility and reliability.”
