{"id":25880,"date":"2025-03-27T15:35:09","date_gmt":"2025-03-27T15:35:09","guid":{"rendered":"https:\/\/www.trccompanies.com\/?post_type=news-and-insights&p=25880"},"modified":"2025-12-02T18:00:13","modified_gmt":"2025-12-02T18:00:13","slug":"take-the-right-approach-to-implementing-derms","status":"publish","type":"news-and-insights","link":"https:\/\/www.trccompanies.com\/fr\/insights\/take-the-right-approach-to-implementing-derms\/","title":{"rendered":"DERMS Part II: Take the Right Approach to Implementing DERMS"},"content":{"rendered":"\n\n
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Maximize value using key best practices<\/h2>\n

As electric utilities work to deliver sustainable energy, and as more consumers acquire solar panels, energy storage systems and electric vehicles, the importance of distributed energy resources (DERs) continues to grow. As a result, more utilities are investing in distributed energy resource management systems (DERMS), which effectively manage diverse assets while enhancing grid reliability. Indeed, DERMS has become an essential enterprise solution for utilities seeking to optimize grid operations and integrate disparate renewable energy sources.<\/p>\n

Yet implementing DERMS can also come with challenges. By understanding the unique aspects of DERMS and adopting the appropriate strategies to mitigate potential pitfalls, utilities can effectively integrate and coordinate DER deployment to align with regulatory commitments and broader business objectives.<\/p>\n

DERMS Implementation Challenges<\/h2>\n

As a software platform for managing utility-owned and customer-owned DERS, DERMS supplies utilities with real-time visibility and control over DERs. However, implementing a new enterprise system can be complex. Connecting systems, communicating with stakeholders, and meeting regulatory requirements can create challenges to implementing DERMS, including:<\/p>\n

\"\"<\/u><\/strong><\/p>\n

Uniting Organizational Silos<\/u><\/strong><\/p>\n

One of the primary obstacles is bridging the gap between different departments within the utility. Typically, at least two main groups are involved: the customer program side, which is usually part of the customer organization, and the distribution-related functions, including interconnection and operations. These departments are often \u00ab\u00a0siloed\u00a0\u00bb and have different priorities and workflows, making it difficult to create a unified approach to DERMS implementation.<\/p>\n

Justifying the Investment<\/u><\/strong><\/p>\n

Utilities often struggle to justify the DERMS investment to stakeholders and regulators. This challenge is compounded by the need to align DERMS goals with broader business objectives and regulatory commitments, such as reliability, affordability and clean energy targets.<\/p>\n

Coordinating with Other Systems<\/u><\/strong><\/p>\n

Many utilities find themselves caught in a cycle of waiting for other system upgrades before implementing DERMS. For example, they may delay DERMS implementation until they’ve finalized their entire operational technology (OT) strategy or have chosen and implemented an Advanced Distribution Management System (ADMS), which can take years.<\/p>\n

Communicating Externally<\/u><\/strong><\/p>\n

Beyond internal challenges, utilities must also effectively communicate with external parties, including regulators and customers. This involves explaining the potential benefits of DERMS in securing cost recovery approvals and engaging with the community to build support for the initiative.<\/p>\n

Managing Integration Complexity<\/u><\/strong><\/p>\n

Integrating DERMS with existing utility systems, particularly the connection between control room software and behind-the-meter DERs, can be difficult due to immature integration points and evolving industry standards.<\/p>\n

Recommendations for Getting Started<\/h2>\n

Utilities embarking on their DERMS journey can benefit by following the proper first steps. The following recommendations provide a solid foundation for streamlining DERMS deployment.<\/p>\n

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  1. Build a Cross-Functional Coalition:<\/strong> Establish a team with representatives from all relevant departments, including operations, customer programs, IT and regulatory affairs. This coalition should also engage external stakeholders such as regulators, customer advocates and solar developers to ensure comprehensive input and support.\n<\/li>\n
  2. Align DERMS Goals with Business Objectives:<\/strong> Clearly articulate how DERMS implementation supports broader goals, such as improving reliability, enhancing affordability and accelerating clean energy targets. This alignment helps justify the investment and ensures that DERMS delivers value across multiple business areas.\n<\/li>\n
  3. Develop a Clear Roadmap:<\/strong> Create a comprehensive roadmap that outlines DERMS implementation through multiple stages, including key milestones, integration points and scaling plans. This roadmap should be communicated across all stakeholders to maintain alignment and manage expectations throughout the project.<\/li>\n<\/ol>\n

    Best Practices for a Successful DERMS Project<\/h2>\n

    Once the project begins, the proper implementation approach can help ensure a successful DERMS deployment on schedule and under budget. Implementing a scalable platform will provide long-term returns through improved grid reliability, optimized asset utilization and increased operational efficiency.<\/p>\n

    Utility practitioners should consider the following best practices:<\/p>\n

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    1. Start Small and Scale Up
      \n<\/strong>Rather than attempting to implement a comprehensive DERMS solution across the entire utility network, begin with a limited number of use cases and a specific area of the system. Focus on one or two substations highly impacted by DERs and establish a baseline level of functionality. This approach allows the utility to learn lessons from the initial implementation and refine its approach before increasing scope and scale.<\/p>\n<\/li>\n
    2. Organize Requirements Around Use Cases
      \n<\/strong>Rather than maintaining a lengthy, unstructured list, utilities should group requirements around specific use cases. This approach aligns with operational needs in the context of specific business objectives. Organizing requirements according to use cases enables the utility to prioritize functionalities that deliver the greatest value.<\/p>\n<\/li>\n
    3. Keep Architecture Options Open
      \n<\/strong>Avoid limiting architectural options prematurely by designing a procurement process that maximizes exposure to different approaches and solutions. In an evolving market, this allows utilities to explore product options from established vendors as well as newer entrants before selecting the most suitable solution.<\/p>\n<\/li>\n
    4. Prioritize Integration Due Diligence
      \n<\/strong>Pay special attention to integration points, particularly between control room software and behind-the-meter DERs. Perform thorough due diligence during the procurement process to make sure that the chosen DERMS solution can integrate effectively with existing systems and devices. Utilities will also want to ensure the accommodation of upgrades based on emerging standards.<\/p>\n<\/li>\n
    5. Get a Working System Early
      \n<\/strong>Implement a test or sandbox system as early as possible in the project timeline. Because DERMS is an entirely new system in most utilities, providing business users with an opportunity to experience the software during the requirements and design facilitates understanding of capabilities and reduces risk. In addition, it shortens the project schedule and leads to better results.<\/li>\n<\/ol>\n

      Implementing DERMS presents both challenges and opportunities. By following best practices, such as starting small, focusing on use cases, and prioritizing key integration points, utilities can overcome obstacles and realize their full potential. With the right approach and expert guidance, implementing DERMS supplies a powerful solution for integrating DERS to enhance grid reliability and achieve clean energy goals.<\/p>\n

      How TRC Can Help Utilities Implement DERMS<\/h2>\n

      TRC brings extensive experience and expertise to DERMS implementation projects, serving as a trusted advisor throughout the process. Our team can help utilities frame the right questions to extract maximum value from market solutions, develop strategies for rapid and effective system deployment, and provide a comprehensive understanding of the big picture before committing to procurement.<\/p>\n

      TRC’s role as an \u00ab\u00a0owner’s engineer \u00ab\u00a0allows us to guide utilities through every stage of the DERMS implementation, from initial planning to full operationalization. We maintain a deep understanding of utility operations, regulatory landscapes and cutting-edge DERMS technologies. We leverage this knowledge to help utilities accelerate their deployment plans, avoid common pitfalls, and achieve their DERMS goals rapidly and effectively.<\/p>\n

      TRC specializes in tearing down silos. Our cross-functional expertise enables us to bridge organizational barriers, facilitate stakeholder communication, and ensure that DERMS solutions<\/a> align with technical requirements and business objectives.<\/p>\n <\/div>\n

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