Grid Management Software: DERMS
Grid Management Software: DERMS
In my previous post1 I outlined the pressures the electricity grid is experiencing due to the growth of new energy sources and DERs. Alongside ADMS, utilities and grid operators are deploying Distributed Energy Resource Management Systems (DERMS) to enable greater control of DERs. They improve grid management by allowing operators to understand how DERs are affecting the grid and respond more effectively to electricity demand.
Without any improvements to the efficiency of the grid, we would need to build much more capacity such as larger numbers of electricity generation sources (which could rely on fossil fuels) and transmission infrastructure. Solutions like DERMS reduce the need for costly system upgrades. A 2023 transmission study by New England’s Independent System Operator found that reducing 2050’s predicted peak load through demand response and energy efficiency programs (which leverage solutions like DERMS and Virtual Power Plants2), could reduce transmission costs by $9 billion3. A Wood Mackenzie analysis discovered that DER project management costs such as DERMS was 100x cheaper than physical infrastructure costs4.
Whilst ADMS tends to be dominated by more established companies and conglomerates, there’s been an explosion in the number of startups offering DERMS5. Unlike ADMS, which has to be deployed in utility control rooms, DERMS can be standalone SaaS products hosted in the cloud with a web app and API. They are able to integrate with behind-the-meter DERs (e.g. smart thermostats, home batteries, EVs) thanks to OEMs providing APIs to enable third party access to these devices.
What I’ve described so far is known as a “Grid-Edge” DERMS6. There are also centralised DERMS that are often managed alongside an ADMS and enable control of front-of-meter DERs (e.g. large scale fleets of batteries controlled by the utility).
DERMS architecture
These are the main components of a DERMS:
DER command and control system - often requires adapters to integrate with devices from different OEMs
Utility IT integration system - so the DERMS can understand grid conditions through systems like ADMS and metering infrastructure
Customer notification system - alerts customers that their device will be used for demand response for example
Web application/API - for administrators and grid operators to get an overview of the DERs managed by the DERMS and trigger demand response events
Forecasting system - often uses machine learning to predict future DER capacity
Generac Concerto Case Study
The Generac Concerto7 DERMS system integrates with over 60 third party DER manufacturers. It provides a single platform for managing these DERs and can optimise the grid whilst “accounting for the constraints of every asset in the system”8.
The platform is built using AWS and uses ECS, Lambda and EC2 to integrate with DERs using REST APIs and standardised protocols such as OpenADR, IEC 104 and DNP3. Postgres and DynamoDB store telemetry, configuration and grid events.
Concerto provides a browser-based web app for utility administrators and grid operators. AWS’s Cognito service enables customer identity and access management.
Grid service events are handled using API Gateway. For example, an ADMS could request emergency load shed on a distribution circuit:
Concerto determines the optimal target group of assets to solve the grid need with a goal of cost minimization for utilities or third-party owners, and it initiates dispatch with corresponding set points for each asset. It performs near-real-time, closed-loop control throughout the event, making sure that the desired capacity and energy are delivered.
AWS has a more detailed write-up about Concerto.
DERMS and VPPs
Both DERMS and VPPs control and aggregate DERs, and forecast their available capacity. It’s reasonable to ask what is the difference between them?
A VPP aggregates DERs to provide grid services for monetary gain. For example, VPP providers will receive payments when they lower energy consumption to keep the grid balanced.
A DERMS is simply used to monitor and analyse DERs’ status and performance. It can also help grid operators manage the grid through DER control. There is no monetisation of assets in a DERMS.
Many DERMS providers offer VPP modules given they have already implemented DER command and control that VPPs require.
Unlocking greater value from DERMS
A lack of standardisation makes DERMS development slower and inhibits their growth. Generac Concerto has over 60 different integrations with DERs because each of them use different protocols and data formats for communication. It’s not possible to have a viable DERMS platform without dozens of integrations, each of which takes time to develop. Implementing standards such as OpenADR9 and IEEE 2030.510 could accelerate the move to a smart grid that takes better advantage of renewable energy.
Conclusion
As we decarbonise our societies by electrifying everything11, we need better control over new producers and consumers of energy. DERMS have an important role to play in managing and optimising the electricity grid. The latest cloud software is enabling the development and deployment of these systems such as Generac Concerto. DERMS will be crucial in ensuring grid stability, efficiency, and reliability as we transition to a more distributed and clean energy landscape.
