DERMS Implementation Solutions
As the grid of the future takes shape, utilities are turning to distributed energy resource management systems (DERMS) to meet the pressing challenge of effectively integrating and utilizing distributed energy resources (DERs). The fluctuating nature of renewable energy sources and the complexity of managing a diverse array of DERs underscore the need for strategic implementation of high-performant DERMS solutions.
DERMS deliver the capabilities utilities need to manage DERs in real time, enabling continuous communication, control, and data flows across solar panels, batteries, and other behind-the-meter devices. Understanding how DERMS work is crucial, as they integrate and manage DERs to optimize energy consumption and generation. Energy storage systems, such as batteries and electric vehicles, play a vital role in enhancing grid resilience and reliability. Forward-looking utilities are leveraging DERMS software to achieve a truly optimized power grid, improved efficiency and resilience, and enhanced ability to respond to power emergencies. DERMS also help manage energy production from renewable sources by forecasting energy production and demand, ensuring that the right amount of power is dispatched to meet electricity needs.
watts of power to be produced by DERs by 2025
(source about how DER implementation to grow to 380 gigawatts by 2025)
dollars = the size of the global DERMS market by 2030
(source about how global DERMS market will reach $1.86 billion by 2030)
Our Approach to DERMS solutions
Logic20/20 helps utilities maximize ROI on their DERMS investments by focusing on key areas:
Needs Assessment
Evaluate the organization's current capabilities alongside its future regulatory commitments and needs to evaluate the overall need of a DERMS.
Key Considerations & Questions:
- What are the utility’s current DER management capabilities (i.e. scheduling, demand response, visualization, monitoring, control, etc.) and what systems are currently responsible?
- What future use cases are required to meet both short-and long-term goals and/or regulatory requirements?
- What gaps exist that hinder the organization’s ability to achieve its DERMS end-state goals?
- How will projected capacity increases in the area of operations impact DERMS requirements and scalability?
Key Activities:
- Current state assessment
- Needs assessment
- Gap analysis
- Next steps recommendation
Involved Teams/Groups:
- Core business stakeholders
- Product owner(s)
- Technical stakeholders (security, architecture, software engineering, etc.)
- Future end-user representatives
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- DERMS use cases and business objectives
Needs Assessment
Evaluate the organization's current capabilities alongside its future regulatory commitments and needs to evaluate the overall need of a DERMS.
Key Considerations & Questions:
- What are the utility’s current DER management capabilities (i.e. scheduling, demand response, visualization, monitoring, control, etc.) and what systems are currently responsible?
- What future use cases are required to meet both short-and long-term goals and/or regulatory requirements?
- What gaps exist that hinder the organization’s ability to achieve its DERMS end-state goals?
- How will projected capacity increases in the area of operations impact DERMS requirements and scalability?
Key Activities:
- Current state assessment
- Needs assessment
- Gap analysis
- Next steps recommendation
Involved Teams/Groups:
- Core business stakeholders
- Product owner(s)
- Technical stakeholders (security, architecture, software engineering, etc.)
- Future end-user representatives
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- DERMS use cases and business objectives
Use Case Definition & Prioritization
Identify and prioritize DERMS use cases based on business needs, technical feasibility, regional regulatory requirements, and impact to ensure a focused and phased implementation approach.
Key Considerations & Questions:
- What are the core business needs and use cases for your utility’s DERMS solution?
- How would the business quantify the value of each business need and use case?
- What DERMS use cases (if any) are already in place through existing systems?
Key Activities:
- Definition of use cases
- Alignment on business needs / value
- Mapping of use cases to business needs
- Prioritization of use cases
Involved Teams/Groups:
- Core business stakeholders
- Product owner(s)
- Technical stakeholders (security, architecture, software engineering, etc.)
- Future end-user representatives
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- Defined use cases
- Use case-business need alignment
- Direction to begin road mapping and detailed requirements gathering
Use Case Definition & Prioritization
Description:
- Identify and prioritize DERMS use cases based on business needs, technical feasibility, regional regulatory requirements, and impact to ensure a focused and phased implementation approach.
Key Considerations/Key Questions:
- What are the core business needs and use cases for your utility’s DERMS solution?
- How would the business quantify the value of each business need and use case?
- What DERMS use cases (if any) are already in place through existing systems?
Key Activities:
- Definition of use cases
- Alignment on business needs / value
- Mapping of use cases to business needs
- Prioritization of use cases
Involved Teams/Groups:
- Core business stakeholders
- Product owner(s)
- Technical stakeholders (security, architecture, software engineering, etc.)
- Future end-user representatives
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- Defined use cases
- Use case-business need alignment
- Direction to begin road mapping and detailed requirements gathering
Strategy & Implementation Roadmap
Develop a detailed plan that aligns DERMS adoption with organizational goals, outlining key milestones, timelines, and resource needs for implementation.
Key Considerations & Questions:
- How can the utility set itself up for future success when adopting a DERMS solution?
- What resources are needed to support this implementation effort (i.e., time, people, etc.)?
- Which problem(s) are you trying to solve?
- Are your use cases properly defined?
Key Activities:
- Develop high-level roadmap
- Develop high-level implementation plan with phases
- Develop project timeline
- Determine high-level cost estimates
Involved Teams/Groups:
- Core business stakeholders
- Product owner(s)
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- High-level roadmap
- High-level implementation plan
- High-level cost estimate for implementation
- Project timeline
Strategy & Implementation Roadmap
Develop a detailed plan that aligns DERMS adoption with organizational goals, outlining key milestones, timelines, and resource needs for implementation.
Key Considerations & Questions:
- How can the utility set itself up for future success when adopting a DERMS solution?
- What resources are needed to support this implementation effort (i.e., time, people, etc.)?
- Which problem(s) are you trying to solve?
- Are your use cases properly defined?
Key Activities:
- Develop high-level roadmap
- Develop high-level implementation plan with phases
- Develop project timeline
- Determine high-level cost estimates
Involved Teams/Groups:
- Core business stakeholders
- Product owner(s)
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- High-level roadmap
- High-level implementation plan
- High-level cost estimate for implementation
- Project timeline
Capability Maturity Model
Assess the organization's current state and desired future state in terms of DERMS capabilities and measure capability maturity of the DERMS throughout its implementation lifecycle and beyond.
Key Considerations & Questions:
- How is a capability expected to operate at a given maturity level?
- What are the baseline operational functionalities for each capability?
- How will each capability mature over time and how does their functionality evolve?
- What does the maturity progression look like for a given timeframe?
Key Activities:
- Identification of capabilities that fall within scope
- Definition of capability maturity for each level
- Graphing baseline and future functionality for each capability to a timeline
Involved Teams/Groups:
- Core business stakeholders
- Technical stakeholders (security, architecture, software engineering, etc.)
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- Capability maturity model
- Capability maturity dashboard/timeline
Capability Maturity Model
Assess the organization's current state and desired future state in terms of DERMS capabilities and measure capability maturity of the DERMS throughout its implementation lifecycle and beyond.
Key Considerations & Questions:
- How is a capability expected to operate at a given maturity level?
- What are the baseline operational functionalities for each capability?
- How will each capability mature over time and how does their functionality evolve?
- What does the maturity progression look like for a given timeframe?
Key Activities:
- Identification of capabilities that fall within scope
- Definition of capability maturity for each level
- Graphing baseline and future functionality for each capability to a timeline
Involved Teams/Groups:
- Core business stakeholders
- Technical stakeholders (security, architecture, software engineering, etc.)
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- Capability maturity model
- Capability maturity dashboard/timeline
RFP Development & Vendor Selection
Develop DERMS technical requirements & request for proposal (RFP), establish a structured evaluation framework, and oversee the vendor response process to ensure a thorough and objective selection of the most suitable DERMS vendor based on the organization’s needs.
Key Considerations & Questions:
- Alignment of utility need with vendor capability
- Peer utility experience
- Customer base and cost implications
- Scalability and customization philosophy
- What does the partnership landscape look like?
- Integration strategy and experience
- How does this roadmap align with future needs?
Key Activities:
- Analysis of the vendor landscape
- Development of the RFP evaluation framework and methodology
- Development of technical specification
- Demo script development
- Client reference questionnaire development
Involved Teams/Groups:
- Core business stakeholders
- Product owner(s)
- Technical stakeholders (security, architecture, software engineering, etc.)
- Future end-user representatives
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- Fully informed vendor selection
- Reusable vendor evaluation framework
- Structured and objective vendor assessment
- Clearly defined system requirements
- Targeted vendor demonstrations
- Comprehensive understanding of available market solutions
RFP Development & Vendor Selection
Develop DERMS technical requirements & request for proposal (RFP), establish a structured evaluation framework, and oversee the vendor response process to ensure a thorough and objective selection of the most suitable DERMS vendor based on the organization’s needs.
Key Considerations & Questions:
- Alignment of utility need with vendor capability
- Peer utility experience
- Customer base and cost implications
- Scalability and customization philosophy
- What does the partnership landscape look like?
- Integration strategy and experience
- How does this roadmap align with future needs?
Key Activities:
- Analysis of the vendor landscape
- Development of the RFP evaluation framework and methodology
- Development of technical specification
- Demo script development
- Client reference questionnaire development
Involved Teams/Groups:
- Core business stakeholders
- Product owner(s)
- Technical stakeholders (security, architecture, software engineering, etc.)
- Future end-user representatives
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- Fully informed vendor selection
- Reusable vendor evaluation framework
- Structured and objective vendor assessment
- Clearly defined system requirements
- Targeted vendor demonstrations
- Comprehensive understanding of available market solutions
System Implementation
Oversee the end-to-end process of the DERMS system implementation, including PMO standup/governance, vendor contracting, business process design, test coordination and defect management, change management, and cutover coordination.
Key Considerations & Questions:
- What governance structure and decision-making processes are needed to ensure project alignment with business objectives?
- What reporting and tracking mechanisms will be in place to ensure project milestones are met?
- How will the vendor contract ensure flexibility for future scalability and interoperability?
- What risk mitigation strategies should be included in vendor agreements?
- How will the DERMS system integrate with existing utility systems (i.e., ADMS, GIS, EMS, CIS)?
- What business processes need to be redesigned or optimized to support DERMS capabilities?
- How will DERMS data be managed, shared, and governed across internal and external stakeholders?
- What is the phased deployment strategy to minimize operational disruptions?
- What is the plan to ensure operator and stakeholder buy-in for the DERMS system ahead of go-live?
Key Activities:
- Stakeholder impact assessments
- Job aid/training material creation
- Go-Live plan development
- Go-Live activity coordination (mock Go-Lives, Go-Live playbook development, Go/No-Go meeting facilitation, etc.)
- Testing coordination
- Business process mapping (current-state and future-state workflows)
- Contract development and negotiation
- Project governance framework development
- Reporting and risk management processes
Involved Teams/Groups:
- Product owner
- Technical stakeholders (security, architecture, software engineering, etc.)
- Core business stakeholders
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- Comprehensive Go-Live plan that addresses how the system implementation will be executed
- Well-defined and enforceable agreements for all vendors involved
- Established decision-making and accountability structure
- Proactive issue identification and transparent reporting structure
- Optimized and well-documented operational workflows
System Implementation
Oversee the end-to-end process of the DERMS system implementation, including PMO standup/governance, vendor contracting, business process design, test coordination and defect management, change management, and cutover coordination.
Key Considerations & Questions:
- What governance structure and decision-making processes are needed to ensure project alignment with business objectives?
- What reporting and tracking mechanisms will be in place to ensure project milestones are met?
- How will the vendor contract ensure flexibility for future scalability and interoperability?
- What risk mitigation strategies should be included in vendor agreements?
- How will the DERMS system integrate with existing utility systems (i.e., ADMS, GIS, EMS, CIS)?
- What business processes need to be redesigned or optimized to support DERMS capabilities?
- How will DERMS data be managed, shared, and governed across internal and external stakeholders?
- What is the phased deployment strategy to minimize operational disruptions?
- What is the plan to ensure operator and stakeholder buy-in for the DERMS system ahead of go-live?
Key Activities:
- Stakeholder impact assessments
- Job aid/training material creation
- Go-Live plan development
- Go-Live activity coordination (mock Go-Lives, Go-Live playbook development, Go/No-Go meeting facilitation, etc.)
- Testing coordination
- Business process mapping (current-state and future-state workflows)
- Contract development and negotiation
- Project governance framework development
- Reporting and risk management processes
Involved Teams/Groups:
- Product owner
- Technical stakeholders (security, architecture, software engineering, etc.)
- Core business stakeholders
- DERMS SMEs (Logic20/20)
Expected Outcomes:
- Comprehensive Go-Live plan that addresses how the system implementation will be executed
- Well-defined and enforceable agreements for all vendors involved
- Established decision-making and accountability structure
- Proactive issue identification and transparent reporting structure
- Optimized and well-documented operational workflows
WEBINAR
Harnessing the power of DERMS: enhancing the grid’s flexibility and reliability
WHITE PAPER
Planning for net-zero utilities: Integrating renewables and DERs
DERMS use cases
A key part of a utilities distributed energy management system strategic roadmap and planning includes prioritizing top use cases and weighing an asset vs. grid centric approach. By focusing on the most impactful use cases, utilities can provide a comprehensive, real-time overview of distributed energy resources (DERs) and their effects on the electrical grid. Additionally, the evolving energy landscape presents a diverse range of energy resources, adding complexities that utilities must navigate to integrate various energy sources effectively. By focusing on the most impactful use cases, utilities can address critical challenges such as load balancing, peak demand management, and renewable energy integration more effectively.
This strategic approach not only enhances operational efficiency but also maximizes the return on investment in a DERMS software platform that enhances the integration and optimization of various distributed energy resources.
DER Visibility
System operator visibility to DER telemetry
Dynamic Operating Envelope
Adaptive gen and load limits for optimal constraint management
Virtual Power Plant (VPP)
Aggregation of DERs – storage, solar, & DR assets
Vehicle-to-Grid Integration
Bidirectional power flow (i.e. EV batteries & the grid) and aggregation & managed charging
DER Forecasting
Days/Hours ahead forecasting, and net load & DR available flexible capacity
Key Considerations for Choosing DERMS Vendors
Alignment of Utility Need with Vendor Capability
Evaluate how well the vendor’s offerings align with the electric utilities’ specific business objectives and use cases particularly in managing distributed energy resources (DERs) through systems like DERMS. Ensure the DERMS solution offers a path to achieving quicker ROIs through its capabilities and deployment efficiency.
Scalability and Customization
Determine how well the vendor can accommodate future growth and customization needs of the utility, especially for functionalities that may not currently exist. A robust network model is crucial in this context, as it enhances reliability and performance in energy management systems, facilitating utilities in managing and regulating Distributed Energy Resources (DERs).
Peer Utility Experience
Consider the experiences of peer utilities who have implemented the vendor’s DERMS solution to gauge its effectiveness and reliability.
Partnership Landscape
Explore the vendor’s recent partnerships, like Schneider Electric’s collaboration with Uplight/AutoGrid, to understand how the alliances enhance the DERMS capabilities.
Customer Base and Cost Implications
Assess the vendor’s customer base size, as a larger base can potentially lower costs through shared development and deployment expenses.
Integration Strategy
Assess the vendor’s capability to integrate Grid Edge DERMS and Utility DERMS seamlessly, ensuring comprehensive management of DERs. Evaluate how the DERMS software enhances grid operations by improving the control, coordination, and optimization of distributed energy resources (DERs). This includes enhancing grid security and integrating renewable energy sources, thereby facilitating more efficient and effective management within the energy network.
Implementation Experience
Evaluate the vendor’s track record in implementing DERMS solutions, considering both the cost of initial implementation and ongoing feature development.
Out-of-Box Capability
Gauge the readiness of the DERMS solution out of the box, minimizing the need for extensive modifications or updates to meet operational requirements efficiently.
Outcomes
Enhanced grid stability
Mitigate the variability of renewable energy sources by managing the flow of power from DERs on the DERMS platform, ensuring grid stability and maintaining a reliable and efficient energy infrastructure.
Improved efficiency
Optimize the dispatch of DERs to reduce the need for expensive peak power generation and increase overall grid efficiency. Effective coordination of these technologies can lead to significant cost savings while also improving grid security.
Increased resilience
Enhance grid resilience against outages by quickly redistributing energy resources where needed, thereby improving grid reliability.
Demand response management
Support demand response programs by controlling DERs to reduce load during peak demand times.
Data-driven insights
Gain insights into energy usage patterns, system vulnerabilities, and opportunities for further optimization.
Case study
Powering change: implementing DERMS for enhanced energy resource management
Learn how we’re helping a major West Coast utility move towards an enterprise DERMS solution that provides seamless access to DER capacity information and enables an integrated approach to grid management.
DERMS Insights
DERMS: Essential strategies for implementation
4 starting steps to help ensure optimized integration of DERMS with existing data platforms
Preparing utilities: DER and renewable energy regulations
How utilities are preparing for new regulations related to DERs by building robust compliance systems
AI’s role in adapting DER aggregators
AI-driven tools and technologies that can help DER aggregators adapt to their role in shaping the grid of the future
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