Transmission & distribution |
Utility response to the ever growing wave of DERs
To realise the full potential of DERs (distributed energy resources), both in front of and behind the meter, in achieving the energy transition, electric utilities need to implement advanced distribution management systems (ADMS) and distributed energy resource management systems (DERMS)
Allison Salke Senior Product Marketing Manager at Oracle Energy and Water
Supported by numerous governments and corporations, the global energy transition from fossil-fuel-based energy systems to low-carbon and renewable energy sources requires reimagining how electricity is produced and distributed. Beyond a major structural transformation of supply and demand, the transition promises energy equity, reliability, and resilience, if we can fully harness and orchestrate the ever-growing wave of distributed energy resources (DERs) and their supporting technologies, which are fuelling this change. These technologies can be located on the grid either in front of or behind the meter. Utilities are responding to the challenge of optimising a continuously changing grid with various approaches. According to a new industry survey by Krishnan & Associates, Empowering the grid: unveiling the potential of DERMS in modern utilities, while the implementation of distributed energy resource management systems (DERMS) remains in the early stages in many regions, momentum is building, and utilities increasingly recognise the strategic importance of DERMS in enabling the transition to a more decentralised, flexible, and sustainable energy system.
The energy landscape is rapidly transitioning to renewable energy, in part driven by the growth of DERs. In 2023, global renewable electricity capacity additions reached an estimated 507 GW, almost 50% higher than in 2022. Solar PV and wind additions are expected to more than double by 2028 compared to 2022, continuously breaking records and reaching almost 710 GW.i While this shift to cleaner sources of power benefits the environment, it brings new challenges to grid operators who must manage these variable resources as they ensure safe and reliable service. Further complicating matters, 80% of DER capacity growth is expected to occur at the customer premises.ii
This creates safety
and load balancing challenges for grid operators, as they cannot see these resources, known as behind-the-meter (BTM) assets, with their systems unless customers grant permission. More broadly, the transition calls for a seismic shift from utilities being centralised, one-way, deterministic power generators and transmission providers to utilities and consumers being decentralised, bi-directional probabilistic
200 0 Solar PV Wind Hydropower Bioenergy Geothermal CSP Ocean 20% 0% % of wind and PV
Renewable electricity capacity additions by technology and segment, 2016-2028 (source: International Energy Agency)
For a deeper dive into the survey results, industry insights, and DERMS strategies you can implement wherever you may be in your DER journey, you can download the Krishnan & Associates report here:
https://go.oracle.com/LP=144178?Campaignid=577246
38 | March 2025|
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generation and transmission co-operators. In both scenarios, utilities must ensure safe and reliable grid operations.
Affecting every area of the grid, DERs, their data, and supporting technologies require flexible and scalable integration approaches to ensure a successful transition. Through integration, grid operators seek to minimise power flow variability and unpredictability caused by factors like weather and consumer behaviour while increasing resiliency through grid control, operator insights, and self-healing technologies like automated fault location isolation and service restoration (FLISR). In effect, grid operators seek to not only gain visibility and control over all front-of-the-meter (FTM) and BTM DERs but also to optimise them under all conditions and circumstances.
While each utility’s path to DER integration is unique, several factors must be considered, including existing infrastructure, scalability, organisational priorities, regulatory requirements, and resource limitations. Typically, similar steps towards DER integration lead to the implementation of advanced distribution management systems (ADMS) and DERMS to realise the full potential of DERs. In fact, a
1000 800 600 400
recent SEPA (Smart Electric Power Alliance) survey indicated that 70% of respondents had implemented or were actively implementing ADMS, and 40% were committed to installing DERMS.iii
Survey says
How is the industry responding to these challenges? At this point in time, slowly and deliberately. Results from the Krishnan & Associates surveyiv
indicate:
7% (of respondents) partial ADMS pilot is planned or operational, with limited future development; 12% ADMS is partially operational, with limited future development or expansion planned; 25% ADMS operational with provisions for future DERMS; 44% ADMS operational with DERMS under active development or pilots; 12% ADMS operational, DERMS integration underway, including DERs integration. According to the report:
ADMS adoption by utilities varies depending on strategic priorities, investment capacity, regulatory environment, technological maturity, and budget.
100% 80% 60% 40%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2023 2024 2025 2026 2027 2028
Accelerated case
Main case
Historical
GW
IEA. Licence: CC BY 4.0
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