The energy industry loves a shiny new object. Something that produces hope for slowing the impacts of climate change, or an innovation that shatters preconceived limitations of The Grid.
Distributed energy resource management systems, or DERMS, land squarely in that bucket. The software’s ability to autonomously control and communicate with millions of potential devices, while facilitating power market participation, could be the Swiss Army Knife the energy transition so desperately needs.
But as it turns out, that shiny object isn’t new at all. Utilities across the country are implementing DERMS to adapt to a rapid shift in how they engage with customers and manage the flow of electricity. And established solution providers, like OATI, have been developing DERMS applications for more than 15 years. The company boasts 10,000 MW of demand response and DER load under command and control with 10% of the largest utilities in the U.S. using its platform.
Nonetheless, the growing market has created an environment of ambiguity. Even the acronym, DERMS, doesn’t have a clear industry definition, creating an opportunity for half-baked solutions to cash in on the optimism.
Electric utilities, however, require certainty. The margin for error for safety and reliability is razor thin. What is a DERMS? That question is likely to solicit a flurry of unique answers, especially since the software can come in many shapes and sizes to fit a utility’s needs.
Demystifying DERMS is an industry imperative to ensure the technology reaches its full potential.
“DERMS is not new to some of us. Let’s demystify DERMS to the point to say, no, it is not only here and now. It has been,” Linda Stevens, OATI’s senior vice president of sales and chief strategy officer for smart grids and smart cities, told POWERGRID International. “It’s a very ripe, robust technology now.”