DERMS selection and implementation 

As the grid of the future takes shape, utilities are turning to distributed energy resource management systems (DERMS) to integrate and use a growing mix of distributed energy resources (DERs). Variable renewable generation and an increasingly diverse DER portfolio make strategic implementation essential.

DERMS give utilities the capabilities to manage DERs in real time, with continuous communication, control and data flows across solar panels, batteries and other behind-the-meter devices. They also forecast DER production and demand, so operators can dispatch the right amount of power when and where it is needed. To deliver that capability, the platform must exchange data with ADMS, EMS, GIS and customer systems, and that integration plan shapes both vendor selection and implementation.

We support utilities at each stage, from needs assessment and vendor selection through OT data readiness, implementation and cutover.

watts of new distributed energy resources projected by 2028
(source about how DER implementation to grow by 217 gigawatts by 2028)

dollars = the size of the global DERMS market by 2030
(source about how global DERMS market will reach $1.86 billion by 2030)

How we help utilities select and implement DERMS

Logic20/20 helps utilities maximize ROI on their DERMS investments by focusing on key areas:

DERMS Journey Map
Needs Assessment Needs Assessment Use Case Definition & Prioritization Use Case Definition & Prioritization Strategy & Implementation Roadmap Strategy & Implementation Roadmap Capability Maturity Model Capability Maturity Model RFP Development & Vendor Selection RFP Development & Vendor Selection System Implementation System Implementation

Needs Assessment

Compare current DER management capabilities with regulatory commitments and projected DER growth to define what the DERMS must do.

Which DER capabilities exist today, such as scheduling, demand response, monitoring and control, and which systems provide them?

Which use cases do near-term and long-term regulatory requirements call for?

How will projected capacity growth affect scale requirements?

Outcome: Defined DERMS use cases and business objectives

Needs Assessment

Compare current DER management capabilities with regulatory commitments and projected DER growth to define what the DERMS must do.

Which DER capabilities exist today, such as scheduling, demand response, monitoring and control, and which systems provide them?

Which use cases do near-term and long-term regulatory requirements call for?

How will projected capacity growth affect scale requirements?

Outcome: Defined DERMS use cases and business objectives

Use Case Definition & Prioritization

Rank use cases by business value, technical feasibility and regulatory need to support a focused, phased rollout.

  • What is each use case worth to the business, and how will that value be measured?
  • Which use cases do existing systems already cover?

Outcome: Prioritized use cases mapped to business needs, ready for roadmapping and detailed requirements

Use Case Definition & Prioritization

Rank use cases by business value, technical feasibility and regulatory need to support a focused, phased rollout.

  • What is each use case worth to the business, and how will that value be measured?
  • Which use cases do existing systems already cover?

Outcome: Prioritized use cases mapped to business needs, ready for roadmapping and detailed requirements

Strategy & Implementation Roadmap

Build a plan that ties DERMS adoption to organizational goals, with milestones, resource needs and cost estimates.

Outcome: High-level roadmap, phased implementation plan, project timeline and cost estimate

Strategy & Implementation Roadmap

Build a plan that ties DERMS adoption to organizational goals, with milestones, resource needs and cost estimates.

Outcome: High-level roadmap, phased implementation plan, project timeline and cost estimate

Capability Maturity Model

Define what each DERMS capability looks like at each maturity level, then track progress through implementation and after.

Outcome: Capability maturity model and dashboard

Capability Maturity Model

Define what each DERMS capability looks like at each maturity level, then track progress through implementation and after.

Outcome: Capability maturity model and dashboard

RFP Development & Vendor Selection

Develop technical requirements, an evaluation framework, demo scripts and reference questionnaires, then manage the vendor response process.

Outcome: An objective vendor assessment, clearly defined system requirements and a reusable evaluation framework

RFP Development & Vendor Selection

Develop technical requirements, an evaluation framework, demo scripts and reference questionnaires, then manage the vendor response process.

Outcome: An objective vendor assessment, clearly defined system requirements and a reusable evaluation framework

System Implementation

Oversee PMO setup and governance, vendor contracting, business process design, testing, change management and cutover.

  • What governance structure keeps the program aligned with business objectives?
  • How will the vendor contract support future scalability and interoperability?
  • What phased deployment approach limits operational disruption?
  • How will operators and stakeholders be prepared ahead of go-live?

Outcome: A go-live plan, enforceable vendor agreements, clear decision rights and documented operational workflows

Read more: OT business integration: Aligning teams for a successful system launch

System Implementation

Oversee PMO setup and governance, vendor contracting, business process design, testing, change management and cutover.

  • What governance structure keeps the program aligned with business objectives?
  • How will the vendor contract support future scalability and interoperability?
  • What phased deployment approach limits operational disruption?
  • How will operators and stakeholders be prepared ahead of go-live?

Outcome: A go-live plan, enforceable vendor agreements, clear decision rights and documented operational workflows

Read more: OT business integration: Aligning teams for a successful system launch

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. 

Read more: 4 essential DERMS use cases for a smarter, more resilient grid >>

Flexible Service Connection

Connect customers in constrained areas under time-varying operating limits Learn more

Dynamic Operating Envelope

Set adaptive generation and load limits to manage constraints

Virtual Power Plant (VPP)

Aggregate storage, solar, and demand response assets

Vehicle-to-Grid Integration

Manage bidirectional power flow, aggregation and managed charging

DER Forecasting

Forecast net load and available flexible capacity hours or days ahead

DER Visibility

Give system operators access to DER telemetry

What to evaluate in a DERMS vendor

Fit with priority use cases​

How well the platform supports the utility's highest-value use cases, and how quickly it can deliver returns.​

Scalability and Customization ​

How the vendor handles growth and functionality the platform does not offer today.​

Peer Utility Experience​​

Results at utilities with similar network size, DER mix and regulatory context.​​

Partnership Ecosystem​

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 Costs​​​

Whether a larger installed base spreads development and deployment costs.​​​

​​Integration Approach​

The vendor's track record connecting grid-edge and utility DERMS functions, and connecting DERMS with ADMS, EMS and GIS.​

Implementation Record​​​

Costs of the initial deployment and of ongoing feature development.​​​

Out-of-Box Capability​

How much the platform delivers before configuration or custom development.​

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.

DERMS Insights

abstract image of man in a suit managing distributed energy resources

Choosing the right DERMS strategy: Grid-centric vs. grid-edge

How utilities weigh grid-centric and grid-edge approaches when defining a DERMS strategy

Improving UX and accessibility for a better online experience

4 essential DERMS use cases

Four use cases shaping how utilities manage DERs on a more flexible, resilient grid

Female electrical engineer in hard hat and safety vest outdoors, holding a laptop with graphs while pointing at a power substation, overseeing grid operations and data analysis

OT business integration: Aligning teams for system launch

How aligning business processes, readiness activities and cutover planning keeps an OT system launch on track

Frequently asked questions
How do utilities choose between grid-centric and grid-edge DERMS?

The choice depends on which use cases come first and who owns the DERs involved. Grid-centric platforms suit constraint management on the utility network. Grid-edge platforms suit programs built on customer devices and aggregators. Many utilities plan for both and sequence them

How does DERMS integrate with ADMS and EMS?

DERMS exchanges network model, telemetry, forecast and dispatch data with ADMS and EMS. The integration design specifies which system owns each function and data element, how often data moves and what triggers each exchange.

What data readiness work should happen before DERMS implementation?

Utilities map each DERMS data exchange by source, destination, transfer method and frequency, and assign an owner to every critical data element. Telemetry and communications gaps identified at this stage are cheaper to close than gaps found during testing.

How do utilities prioritize DERMS use cases?

Utilities rank use cases by business value, technical feasibility and regulatory requirement, then check which ones existing systems already cover. The top use cases set the first release and shape the vendor evaluation.

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