Energy Grid Modernization: Info-Tech Research Group Outlines the Impact of DERMS on Sustainable Utility Operations

Author(s): Mano Mohan Pallan

May 20, 2024As the energy sector faces growing demands for sustainability and efficiency, utilities are increasingly turning to distributed energy resource management systems (DERMS) to navigate these challenges effectively. The rapid increase in distributed energy resources (DERs) emphasizes the need for a paradigm shift and more sophisticated grid management systems to accommodate this growing complexity. Addressing this pressing issue, Info-Tech Research Group has published its latest research, Fast-Track Your DERMS Business Case, a detailed blueprint that guides utility leaders in justifying and implementing DERMS. This essential research will support the industry in maintaining grid stability, enhancing energy reliability, and ensuring a seamless transition to more distributed energy models.

Info-Tech Research Group's "Fast-Track Your DERMS Business Case" blueprint outlines a framework
for utility leaders to consider when building a DERMS business case.

The world has embraced a shift from a centralized energy supply toward DER, a vital response to the rising consumer demand for energy,says Jing Wu, principal research director at Info-Tech Research Group. DERs have also become an integral component of nations’ net-zero pathways. However, the diverse nature of DERs, with their unique characteristics and impacts on the grid, presents a set of challenges for utilities to manage.

Info-Tech’s industry research highlights that utility leaders face significant hurdles in justifying the adoption of DERMS within their organizations. The blueprint outlines the dual challenges of demonstrating the broad benefits that DERMS offers for aligning with the rapidly evolving energy landscape as well as grasping how these systems can integrate seamlessly into existing grid infrastructures. However, given the quick pace of changes in the energy sector and regulatory frameworks, utilities can no longer afford to overlook the need for an intelligent DERMS solution. The firm suggests that expediting business case development efforts for DERMS can empower leaders to make faster, more informed decisions, thereby ensuring grid modernization and stability.

As the penetration of DER reaches certain critical levels, existing systems and processes become insufficient for handling the growing number of interconnection requests,” explains Wu. This fundamental paradigm shift highlights the complexity of gird management to ensure reliability and stability. DERMS provide intelligence, flexibility, and processing power, empowering system operators and engineers to enhance decision-making.

The firm advises that utility leaders should adopt a holistic and efficient approach in crafting a robust DERMS business strategy. Through exploration of DERMS case studies and business scenarios, utility leaders can better understand factors that shape an effective business strategy. In its newly published blueprint, Info-Tech outlines the following framework for utility leaders to consider when building a DERMS business case:

Vision and strategy alignment

  • Ensure the DERMS implementation aligns with the organization’s vision and strategic goals, highlighting its crucial role in achieving future objectives.

Roadmap to close the gap

  • Evaluate the current state and identify pain points that could hinder reaching strategic goals, detailing how the proposed architecture will bridge these gaps.

Impact on the organization

  • Identify the internal stakeholders and processes that will be impacted and provide a comprehensive cost-benefit analysis to strengthen the business case.

Pragmatic steps to ensure success

  • Outline a strategic plan for a successful DERMS rollout, pinpointing potential risks and strategies to mitigate any barriers to success.

The integration of DERMS not only accelerates interconnection impact analysis and commissioning processes but also contributes significantly to the evolving energy landscape by meeting the urgent needs of today’s energy sector.

As detailed in Info-Tech’s comprehensive blueprint, the implementation of DERMS helps utility leaders navigate the complexities of distributed energy resources, ensuring smoother transitions and integration into existing grid infrastructures. This transition is critical for maintaining grid stability and enhancing energy reliability. By effectively reducing application timelines and improving operational efficiencies, DERMS can lead to lower energy costs for consumers, making a compelling case for their adoption in a more sustainable and efficient energy future.

For exclusive and timely commentary from Jing Wu, an expert in the utility technology market, and access to the complete Fast-Track Your DERMS Business Case blueprint, please contact

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