Generally, most Behind-the-Meter (BTM) Distributed Energy Resources (DER) are controlled by Demand Response Management Systems (DRMS). The DRMS is a software solution designed to control and manage DERs like smart thermostats, smart water heaters and other BTM devices. DRMS come from the IT side of the world which makes it challenging for them to be grid responsive, meaning that they primarily provide market interface modules without integrating directly with grid operations and also, cannot communicate with the grid to receive or send data about energy usage, supply or demand. Therefore, the teams that operate the DRMS (usually customer programs) focus on reducing peak demand by turning down customers smart thermostats.
BTM DER are evolving rapidly and expanding into numerous types of devices such as Electric Vehicles (EVs), Battery Energy Storage Systems (BESS), smart water heaters, and so on. In response to this, grid operators need DRMS systems to evolve. This evolution can only be natural as the systems are now expected to integrate with the grid as the energy transition advances, as well as the ever evolving regulations and market structures which are pushing utilities to adopt more flexible and dynamic demand response strategies. The increased adoption of DERs worldwide due to a number of factors including net zero goals requires a more sophisticated management system to ensure that they can be effectively managed and integrated into the grid. As BTM DER penetration grows, control center operators will feel the impact of this growth for grid reliability and safety. This is where grid responsive Distributed Energy Resource Management Systems, or DERMS, comes in.
At first glance, DERMS may seem very similar to DRMS. DERMS are software platforms designed to monitor and dispatch DERs, however they differ from DRMS as they integrate with the customers Advanced Distributed Management System (ADMS) and/or Supervisory Control and Data Acquisition (SCADA) systems to understand the impact DERs have on grid infrastructure. Moreover, the DERMS integrates with the utilities’ DRMS system (or provides its own), as well as integrating with various DER Aggregators. The DERMS can then add a real-time layer of control to the DER which DRMS could not provide on its own. DRMS, therefore, will no longer just be used for peak shaving, but the DERMS will enable the system to provide grid services. Additionally, the DERMS provides an extra layer of cyber-security, avoiding the utility from needing to integrate internet facing systems into its ADMS.
With FERC Order 2222 on the horizon a DERMS acts as a safety net for utilities by providing the DER aggregators forecasts of what they can dispatch without causing grid constraints while also performing corrective actions on the DER Aggregators if they cause any grid issues. DERMS can provide utilities with advanced tools to monitor, control, and optimize DER which is a crucial capability for managing the increased complexity, and variability introduced by DERs participating in wholesale markets.[JW3] By implementing a DERMS, utilities can ensure they comply with the technical and operational requirements set forth by FERC Order 2222. This includes managing locational requirements, metering, telemetry, and coordination among various stakeholders. DERMS can also help reduce operational costs of the use of DERs for utilities, improving the economic efficiency of the grid leading to lower energy costs for consumers and better financial performances for utilities.
As DERMS continue to evolve and integrate with DRMS, they offer a comprehensive solution to the challenges posted by BTM DER. DERMS provide enhanced grid visibility and control, enabling utilities to better manage BTM resources and maintain grid stability enhancing current DRMS functionality. This evolution is not only essential in navigating the increasing complexity of distributed energy, but also ensures compliance with regulatory frameworks such as FERC Order 2222. By acting as a safety net, DERMS empower utilities to unlock the full potential of BTM resources while ensuring reliability, grid resilience, and operational efficiency.