Coordinating grid-centric and grid-edge DERMS: A journey towards platform convergence

Contributed by Ross Mesnick, Senior Consultant, Grid Operations at Logic20/20

There has been considerable growth over the last decade in the adoption of distributed energy resources (DERs). As their relevance continues to expand, growth could outpace utilities’ ability to manage and mitigate the impact of DERs on the grid. Therefore, major utilities have begun implementing distributed energy resource management systems (DERMS). DERMS equip utilities to manage the adoption of DERs by providing the tools necessary to handle the resulting complexities. 

Factors contributing to the rise in DERs

Regulations

Passed in September 2020, FERC Order 2222 requires regional grid operators to remove barriers preventing DERs from aggregating and competing with traditional power plants. This allows smaller, decentralized resources to transform how electricity is generated, distributed, and consumed. The order supports the shift away from reliance on large, centralized power plants and enables a cleaner energy future fueled by the integration of renewable energy sources.

Clean energy mandates will require a proportion of energy to be generated by renewable sources. For example, California’s Renewable Portfolio Standard (RPS) requires 60% of electricity to come from renewable sources by 2030. By 2045, the state aims to have 100% of its energy generated from clean sources. At the federal level, President Joe Biden set a goal for net-zero emissions by 2050. Achieving such ambitious goals requires the rapid adoption of DERs.

Public opinion

Climate activism is becoming increasingly common, and climate change is now a major political issue. According to the United Nations, 2023 was the warmest year on record. A surge in natural disasters, specifically storms and droughts, continues to destroy homes and communities, costing billions of dollars.

Technological advancements

Advances in battery storage technology make it easier to store excess energy from renewable sources. DER technologies are also more readily accessible to the public. Solar energy has become the fastest-growing renewable energy source; In 2023, solar energy accounted for approximately 54% of new electric generation capacity in the United States, up from just 6% in 2010.  

A comprehensive and coordinated DERMS solution

To effectively manage the rise of DERs, utilities need a comprehensive solution that accommodates behind-the-meter (BTM) and front-of-the-meter (FTM) DERs.

This solution must enable the coordination of FTM assets and management of grid constraints (grid-centric DERMS) with BTM assets (grid-edge DERMS). To understand why seamless communication is necessary, it is important to explore what each domain covers.

Grid-centric DERMS: An overview

A grid-centric DERMS, also known as utility DERMS, focuses on the management and optimization of DERs from the utility’s perspective to ensure grid stability and efficiency.

The grid-centric DERMS integrates DERs into the broader grid management system while interfacing with OT infrastructure, such as ADMS, AMI, and EMS. This allows the utility to leverage DERs to support grid operations such as voltage regulation, load balancing, and frequency control in managing fluctuations in supply and demand.

Grid-edge DERMS: An overview

A grid-edge DERMS, also known as customer DERMS, enables access to customer-owned DERs—such as rooftop solar, water heaters, thermostats, and electric vehicles—to integrate these into the larger grid. This integration enables data flow and control, allowing utilities to manage, monitor, and optimize DERs in near-real time.

The grid-edge DERMS focuses its control and optimization at the point where energy is generated and consumed. It operates in a decentralized manner and optimizes individual DERs to meet local demand or conditions.

Comparing grid-centric and grid-edge DERMS

While both DERMS types manage DERs to optimize grid performance, integrate renewable energy sources, and optimize energy flows to balance supply and demand, differences between the two become noticeable on closer examination.

DERMS platform coordination

A grid-centric DERMS needs to exchange various types of information with a grid-edge DERMS, including but not limited to:

• Demand response request instructions
• DER or aggregator event and status information
• Grid topology information
• Performance data of DER assets
• DER short-term forecasts

APIs make this exchange of information possible.

The grid-centric DERMS relies on its grid-edge counterpart to aggregate information from the DERs it manages and to deliver this detailed, real-time data. Types of information received by the grid-edge DERMS may include:

• DER performance and status: Real-time performance of individual DERs, alarms/notifications related to DER status, and operational conditions (e.g. voltage, frequency)
• Forecasting data: Availability of DERs and their forecasted generation, plus real-time and predicted consumption patterns
• Constraint data: Operational constraints and metrics that could affect DER operations (e.g. curtailment limits, equipment health, geographic limitations) and metrics that help grid operators understand the impact of DERs on the distribution network (e.g. voltage, current, and power factor information from local DER sites)
• Dispatch confirmation: Responses to commands coming from the grid-centric DERMS indicating DERs are complying with dispatched instructions/signals

The grid-centric DERMS can communicate to the grid-edge DERMS information about what the power grid needs for certain locations and time durations. Based on the severity of the need, the grid-edge DERMS can offer ways to mitigate increases in demand and leverage unused potential energy from DERs.

To balance supply and demand, maintain voltage levels, and reduce congestion, the grid-centric DERMS must transmit information to its grid-edge counterpart instructions and signals, including but not limited to:

• Dispatch instructions: Commands to turn DERs on and off, increase or decrease generation, or charge/discharge energy storage
• Price and market signals: Dynamic pricing signals or other incentives
• Grid constraints and conditions: Information about various grid conditions, including line congestion, voltage stability, and fault conditions
• Operational information: Specific power output levels or schedules DERs should follow, and operational targets aggregated DER groups should meet based on grid demand

Most utilities have opted for both a grid-edge and a grid-centric DERMS that work in tandem. The grid-edge DERMS processes all data for BTM DERs and aggregates and transmits this information to the grid-centric DERMS. While a grid-centric DERMS may have grid-edge functionality, the volume of data might be too high to enable a grid-centric DERMS to process all the data required by its functionality and all the data required to function as a grid-edge system.

Right now, the grid-edge DERMS’ aggregation function is crucial for processing, grouping, and transmitting vast amounts of DER data to a grid-centric DERMS. As DERMS technology continues to develop, the grid-centric DERMS may be able to completely absorb all the functionality of its grid-edge counterpart and perform the functions of both systems seamlessly.

About the author

Ross Mesnick is a Senior Consultant in Logic20/20’s Grid Operations practice. With professional experience advising clients in the power & utilities sector, Ross has worked with major utilities across the United States to implement new technologies to transform the power grid. He has experience supporting utilities through the end-to-end system implementation process, including requirements gathering & development, vendor selection, business process design, testing, go-live & post-implementation support for ADMS, OMS, SCADA, and DERMS.