In our pursuit of carbon neutral energy for the electric grid, we face several changes. The primary being the inclusion of (potentially) millions of Distributed Energy Resources (DER) across a vast variation of grid conditions. There is no doubt that this new operational environment is going to be full of new challenges. The centralized, huge plant-based system with a “hub and spoke” command and control architecture has proven reliable, predictable and (by comparison) operationally understandable (but never “easy”).
This new world of DER brings some of the most feared words of engineering or process minded groups: variation and complexity. Moving from centralized “one” plant models to thousands or millions of DER that are not necessarily owned by the utility, communicated with over proprietary/private networks and “always available and schedulable” are the starting points of the new challenges. In short, the utility operational world is getting more complicated and dynamic by the day. The good news is that there are proven ways to deal with it.
The evolution towards DERMS
In this new operational world for uilities, incorporation and coordination of DER into planning, operations and new markets present massive challenges and opportunities. The best news? It is not a one size fits all world.
Many of today's DER Management System (DERMS) solutions have emerged through Distribution Management Systems (DMS) and Demand Response (DR) platforms. Both systems have specific use cases based on legacy grid topology - one that did not include DER. So then, should DMS platforms now address a world with high-volume and diverse DER connections and new applications? Or should DR platforms designed to capture customer flexibility to manage peak loads now morph into a form of DERMS?
And what about the utility that does not have a DR or DMS platform today? Does this lack of installed functionality complicate the path to a modern DERMS? Not at all. In fact, in many of the cases developing today, it could be argued that a DERMS solution that is indifferent to these other technologies is a winning choice for most of today’s utilities.
Approaches to DERMS
Using those traditional approaches leads to a more conservative approach to grid and energy management – this presents problems for DER grid access, market participation and barriers to the energy transition.
In contrast, the new breed of DERMS borrow some characteristics from DMS and DR technology but also leverage a new technology stack to deal with the demanding needs for orchestration of DER at scale.
Wide-area, grid integrated, network model-dependent, supervisory control from the DMS will continue to be crucial for utilities, but many DER customer and market focused capabilities are now needed. It is at this confluence of DMS, DR and DER with customer, real-time grid and market interaction that the new breed of DERMS is focused. Because of the differences in technology and application in DERMS, many use cases can be deployed even when a utility does not have a DMS or DR Management System (DRMS).
A common misconception of DERMS is that it is a singular, large and expensive acquisition. Experience tells us that customers of different types, sizes and starting points each increment both geographically and functionally in building their DERMS, adding new use cases, connecting assets and aggregations and establishing interfaces to market, customer and operational systems as value creation and other priorities dictate.
Enabling DER Interconnection and growing a DERMS
One of the common starting points for DERMS is addressing DER grid interconnection on the basis that, if we cannot connect DER to the grid, then the rest of the value of orchestrated, customer, grid and market integrated DERMS is not available.
The real time monitoring and control of DER and grid through a light-touch initial DERMS implementation facilitates dynamic hosting capacity and faster and cheaper DER connections. Flexible interconnection provides an immediate value adding solutions for utilities and developers through cheaper and quicker connection. Rate paying customers benefit from lower grid upgrade expenditure. Utilities benefit from more effective deployment of capital, time, and other resources creating a starting point for full DERMS deployment. Policy makers and regulators benefit from the faster clean energy and economic targets.
Recent EPRI and SEPA work on use cases and requirements show that prospective DERMS functionality is now very broad, our experience tells us that utilities will roll-out DERMS in a phased manner, iterating the platform scope and prioritizing use case additions by value. So, the DERMS journey for utilities is achievable and has easier starting points than might be assumed.