Effectively monitor, control and optimize assets at the Grid Edge
As electric grids worldwide become increasingly decentralized and consumers embrace rooftop solar, smart appliances and electric vehicles, utilities must adapt infrastructure and business models initially designed for centralized power generation. In the United States alone, the distributed energy resources (DERs) market is projected to nearly double by 2027. These new DERs create challenges by reducing load visibility, creating uneven power flows and threatening grid stability.
Enter distributed energy resource management systems (DERMS). Alongside the energy management system (EMS) and the advanced distribution management system (ADMS), DERMS enables grid operators to monitor, control and optimize the growing number of DERs. DERMS harnesses many heterogeneous resources to enhance reliability, increase affordability and reduce greenhouse emissions while improving business performance and returns for utility owners and investors.
Understanding DERs and DERMS
DERs encompass a variety of technologies that enable utility customers to manage their load and generate and store electricity near the point of use. This includes solar panels, wind turbines, energy storage systems and electric vehicles. In addition, DERs consist of smart appliances and home controls, from the iconic Nest™ thermostat to emerging technologies such as connected heat pump water heaters and thermal ice storage systems for commercial buildings.
DERs create choice and control for consumers, representing a shift towards sustainability and energy independence. However, the proliferation of DERs presents difficulties for utilities in terms of grid stability and management.
DERMS provides a software platform for effectively managing the increasing number of DERs connected to the power grid. Where ADMS focuses on orchestrating transformers, reclosers, capacitor banks and other utility-owned assets that comprise the electrical distribution grid, DERMS provides utilities with real-time visibility and control over DERs. DERMS enables the efficient integration of these resources (both utility-owned and customer-owned) into the grid. Utilities employ DERMS to maintain grid stability, optimize energy flow, and ensure reliable power delivery, all while accommodating the adoption of renewable energy sources.
Balancing Reliability, Sustainability and Affordability
Electricity providers across the U.S. and around the world strive to deliver sustainable energy. While adopting DERs can add complexity, doing so can also meet the mandates of reliability, affordability and sustainability. DERMS enhances the potential for DERs to reduce energy costs, increase reliability and result in a smaller carbon footprint.
Maintaining Grid Reliability
Bi-directional energy flows from prosumers (consumers whose DERs also produce energy) can lead to voltage violations and unreliable power quality. Overloading can shorten the lifespan of utility equipment and cause outages. Backfeeding of power across substations to transmission lines can damage equipment that wasn’t designed to support it and may create safety risks for workers who mistakenly assume a line is de-energized. Moreover, utilities struggle with limited visibility into DER operations. This “masked load” phenomenon, where solar generation offsets local consumption, can lead to inaccurate load forecasts and suboptimal grid management decisions.
DERMS can provide grid operators and maintenance crews a complete generation picture from customer-owned DERS. It can also interoperate with ADMS to minimize violations and even control DERS to prevent violations.
Ensuring Affordability
DERMS can help customers and utilities work seamlessly together to shift usage away from peak capacity constraints. From the perspective of the individual customers, DERS gives them control over their energy use and can help them respond to rate signals, consuming energy when it is cheap and abundant and conserving energy when it is scarce and expensive.
Self-consumption of power stored or generated on-site is often cheaper than energy purchased from the grid at peak times. For government agencies, non-governmental organizations (NGOs) and organizations concerned with energy equity, DERs represent a measurable, performing asset they can subsidize to reduce customer energy burdens. With DERMS, DERS can be controlled and customers can be compensated for their grid services.
Meeting Sustainability Targets
The intermittent nature of renewable generation poses challenges for utilities trying to serve an increasing demand from renewable supply. Utilities can use DERMS to shift demand to times when renewable energy is plentiful by controlling loads such as EV charging, water heating and air conditioning.
DERMS Provides Grid Operators with Visibility, Control and Flexibility
DERMS excels at coordinating and controlling large numbers of diverse DERs. It can manage the combined output of solar panels, energy storage systems and controllable loads. Utilities can balance supply and demand in real time, especially during high-demand periods or when renewable energy generation fluctuates.
Using advanced analytics, real-time data processing and sophisticated control algorithms, DERMS helps utilities use existing infrastructure more efficiently and potentially defer costly upgrades. They supply tools for making data-driven operational decisions, optimizing energy distribution and addressing reliability issues preemptively.
DERMS technology enables demand response and other customer programs, allowing utilities to incentivize consumers to adjust their energy usage during periods of high demand. Utilities can shape and influence customer load profiles, encouraging consumption during periods of excess renewable generation and reducing strain during peak demand hours. This helps load balancing, promotes energy efficiency and enhances customer engagement.
With DERMS, system operators gain improved forecasting capabilities; they can predict energy demand and DER output by analyzing historical data and current conditions. This allows utilities to plan and allocate resources effectively. Operators can receive alerts to identify and correct potentially serious issues, such as unintentional islanding or voltage violations, before they occur.
The needs of grid operators will evolve as sustainable energy progresses and technology evolves. When implemented strategically, DERMS provides a flexible, scalable utility platform that can orchestrate many small generators and loads to support a variety of use cases.
Some practical examples of DERMS uses and benefits include:
Optimizing Residential Grid Demand
Consider a cul-de-sac where multiple households have adopted electric vehicles. Without proper management, simultaneous charging could overload the shared transformer, forcing an asset upgrade before it reaches its end of life. DERMS can implement a managed charging program, ensuring that EVs charge simultaneously only during off-peak hours or when local solar generation is high enough to avoid overheating. This maximizes infrastructure use, avoids costly upgrades and increases the utility’s electricity sales without compromising grid resiliency. Participating customers might benefit from a lower-priced EV charging tariff, and all customers will benefit from avoided rate increases.
Enhancing Renewable Energy Use
DERMS can dynamically adjust flexible loads across the distribution system to absorb excess energy on sunny or windy days when renewable generation output is high. For example, DERMS might signal EV chargers to increase the charging rate or activate smart water heaters. This maximizes the use of clean energy and reduces the potential for curtailment of renewable resources.
Enabling Flexible Interconnections
DERMS can facilitate the interconnection of new, utility-scale DERs or large loads on constrained grid areas, improving service while keeping costs down. For instance, an EV charging depot might require a 10-megawatt connection, but the local infrastructure can only support 6 megawatts during peak times. DERMS can enforce a flexible interconnection agreement instead of denying the connection or requiring the developer to pay for expensive upgrades. The depot can operate at full capacity most of the time, with controlled reductions only during constrained periods, thus promoting economic development.
Mitigating System Constraints
DERMS helps utilities manage their capital expenditures by deferring the need for expensive upgrades to transmission and distribution networks. DERMS can reduce system-wide operational costs and mitigate transmission constraints by minimizing demand (and demand charges) for long-distance transmission. DERMS can also optimize for minimal system losses in both transmission and distribution networks.
TRC: Your Partner in DERMS Implementation
TRC’s tested practitioners understand utility systems, business processes and the transformative potential of DERMS. We partner with utilities to assess their needs, design tailored solutions, and integrate them with existing systems and infrastructure. Our seamlessly integrated approach encompasses everything from initial planning and system design to implementation, testing, and ongoing support. We uniquely understand DERMS’s business capabilities and technical aspects in the context of the operational realities.
The benefits of trusting TRC for DERMS implementation include:
1. Comprehensive Expertise:
TRC combines the capabilities of a system integrator with deep subject matter expertise in the electric utility sector. This unique combination ensures that DERMS implementations are not only technically sound but also aligned with the specific needs and challenges of the utility business.
2. Owner’s Engineer Approach:
As your trusted partner throughout the entire DERMS implementation journey, we give utilities peace of mind and expert guidance from project inception to completion.
3.Bridging Business and IT:
Our experts connect business stakeholders and IT teams, ensuring that DERMS implementations meet technical requirements and business objectives. This includes a deep understanding of operational technologies and emerging AI applications.
4. Risk Mitigation:
With extensive experience in DERMS and related technologies, TRC helps utilities navigate the complexities of implementation, avoiding costly mistakes and ensuring optimal business outcomes.
5. Continuous Support:
Our commitment extends beyond initial implementation, providing ongoing support and expertise as utilities evolve their DERMS and real-time systems capabilities.
TRC’s combination of technical expertise, industry knowledge, and proven best practices for delivery makes us the ideal choice for modern utility management. View our related services to learn more or contact us today with your questions.