While there are no consistent definitions for ADMS or adoption schedules, utilities usually implement custom configurations with differing capabilities.


Some utilities integrate DERs with ADMS but on a small scale (<100 MW).


DERMS must work in concert with ADMS.


While utilities’ journeys may be at different stages, they all lead to a composable and orchestrated solution in which ADMS and DERMS must work together to deliver optimal results — even if the question of whether or not to integrate DERMS with ADMS or keep it separate seems up for debate. Consensus has been reached on the idea that ADMS and DERMS must work together and, based on a myriad of changing requirements and uncertainties such as a lack of standards, utilities value flexible composable architectures. Where DERMS extends the core functionality of ADMS, a composable architecture allows utilities to strategically prioritise solution implementation as opposed to a single, large project at one time, if they prefer.


The path forward


While DERMS adoption remains in its early stages, evolving regulatory frameworks, business models, and increasing adoption rates of DER are expected to drive further investments in the deployment and expansion of DERMS. Utilities are increasingly recognising the strategic importance of DERMS in enabling the transition to a more decentralised, flexible, and sustainable energy system. Implementation varies widely depending on location, regulatory frameworks, technological advancements, and utility strategies. Interestingly, the Krishnan & Associates survey notes the importance of industry collaboration in adopting DERMS: “Although there is a growing interest in DERMS, utilities face several challenges when implementing and integrating them into the existing grid infrastructure, including technical complexities, data interoperability issues, cybersecurity concerns, regulatory barriers, and financial constraints. To overcome these challenges, utilities must collaborate with technology vendors, regulators, and other stakeholders to develop robust DERMS solutions and deployment strategies.” v To solve these challenges and answer the question as to whether we can fully harness and orchestrate DERs and their supporting technologies requires collaboration amongst all stakeholders and knowing where to begin. For utilities, the steps along the path forward were captured in a recent interview with Brad Williams from Oracle.vi


Williams says he frequently gets asked this question. He advises utilities to:


Start with processes to capture and manage the actual devices. Create digital twin models and integrate them into your systems to for operational flexibility and program management. Address scalability in stages. Pilot in settings like the Oracle Industry Lab; test proof of concept in the field, and then scale to a system-wide rollout. Go from 10 devices, to 100s, to 1000s, to millions.


Focus on architecture because it is critically important to deliver this scalability and flexibility.


These steps are supported by the research findings in the Krishnan & Associates industry survey. To navigate the energy transition and take advantage of the growing presence of DERS, utilities must focus on core capabilities, flexibility, scalability, and collaborative vendor relationships.


References: i IEA, Renewables 2023, https://www.iea.org/reports/renewables-2023/electricity


ii Guidehouse “Analyst insight: DER year in review, Global DER deployment insights,” 1Q 2022


iii Smart Electric Power Alliance, 2023 N=61 distribution utilities. Single response question


iv Krishnan & Associates, Empowering the grid: unveiling the potential of DERMS in modern utilities, 2024


v Krishnan & Associates, Empowering the grid: unveiling the potential of DERMS in modern utilities, 2024, p38


vi Oracle TV Presents: Industry Innovations – Distributed Energy Technologies www.linkedin.com/company/faco-s.p.a./posts


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