In today's rapidly evolving electricity sector, load growth has emerged as the dominant trend, driven not just by data centers but also by EV adoption, heating electrification, and the accelerating deployment of distributed energy resources (DERs). With projections indicating that 217 GW of DER capacity will be added to the grid by 2028, utilities face both opportunities and challenges in effectively managing these resources.
DERMS (Distributed Energy Resource Management Systems) have emerged as a key to unlocking the full potential of DERs. However, sorting through the many DERMS solutions available can be incredibly confusing. Here are five things to know to help make sense of the topic, as well as where Integrated DERMS fits in.
1. An Integrated DERMS Combines Two Distinct Approaches for Comprehensive Control
An Integrated DERMS brings together two complementary systems: Grid DERMS and Edge DERMS. Grid DERMS has evolved from traditional utility management systems, focusing on distribution network conditions and front-of-meter resources. Edge DERMS emerged from demand response platforms to manage behind-the-meter assets like batteries, EV chargers, and smart thermostats. Together, they create a structured framework that provides visibility into current grid conditions and local constraints while enabling targeted dispatch of specific DER assets to solve grid congestion issues.
2. It Addresses the "Missing Money" Problem of DERs
For over a decade, utilities have recognized the potential value of integrating DERs through utility programs, but that value has largely been limited to basic use cases like peak shaving. What Wood MacKenzie calls the "missing money" of DERs requires more dynamic approaches beyond static program design. An Integrated DERMS solution unlocks this untapped value by enabling more sophisticated dispatch strategies that transform DERs into responsive grid assets, enhancing their value for both utilities and customers while supporting compliance with regulations like FERC 2222.
3. It Enables Advanced Grid Management Use Cases
Integrated DERMS systems unlock capabilities beyond traditional demand response, including topology mapping (automatically organizing DERs based on grid location), situational awareness (providing real-time and forecasted views of available DER flexibility), site-level telemetry (capturing behind-the-meter activities at C&I sites), and automated dispatch (streamlining operations through API-triggered events). These advanced use cases help utilities transition from manual, day-ahead planning to more responsive grid operations that can quickly address both system-wide and localized needs.
4. It Breaks Down Operational Silos to Create a Single Pane of Glass
Most utilities have begun their DER management journey through targeted programs or point solutions for specific asset types, but these siloed approaches make coordination complex and reduce system efficiency. An Integrated DERMS eliminates these barriers by providing a coordinated way to monitor and manage both utility and customer assets. This single source of truth enhances coordination between previously disconnected teams—including DSM program managers, grid operations, and planning departments—while providing crucial visibility into behind-the-meter resources that were previously difficult to monitor and forecast.
5. Implementation Should Be Incremental
Implementing an Integrated DERMS begins with organizational alignment and an honest assessment of your utility's DER program maturity. Rather than attempting a complete transformation at once, successful utilities start small, prove value, and scale from there. The process begins by identifying what specific challenges need to be solved —whether that's grid congestion, interconnection delays, or the need for more dynamic load flexibility—and then aligning stakeholders across operations, planning, DSM, and IT. From this foundation, utilities can implement one half of the solution, Grid DERMS or Edge DERMS, initially to address specific operational challenges before pursuing comprehensive integration. This integrated system will help build towards a future where DERs become a cornerstone of reliable, affordable, and sustainable grid operations.
As we continue to see load forecasts spike and more DERs come online, utilities that embrace Integrated DERMS solutions will be better positioned to transform their approach to DER management, improve reliability, maximize asset value, and advance their decarbonization objectives.
Read our latest eBook to learn more about the power of integrated DERMS and get strategies for transforming siloed DER management to a system-level approach that improves reliability, maximizes asset value, and advances decarbonization objectives.
Sam Hartnett is a Senior Product Marketing Manager at Uplight, where he leads go-to-market strategy for demand response, virtual power plant, and grid asset solutions. With over a decade of experience in the energy sector, Sam has previously held key roles at EnerNOC and Rocky Mountain Institute focusing on demand-side resources.
