The utility’s case for DERMS

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Utility-Scale DERMS: Do They Measure Up?

Distributed energy resource management systems (DERMS) are a key component in utilities’ march toward decentralization—keeping the grid stable and easing utilities into the energy transition.

Record amounts of grid-friendly tech like smaller renewable and storage projects, electric transportation, microgrids, and virtual power plants are launching every day—but how are utilities leveraging new DERMS solutions to alleviate grid stress and promote responsible consumption?

We’ve got the rundown.

• Solar and wind often go hand-in-hand with supply fluctuation and grid instability. DERMS provide real-time monitoring and control for utilities, allowing them to more effectively engage customers with energy efficient demand response programs.

• DERMS centralize enormous amounts of data, which expedites decision making for utilities.

• DERMS often have automated compliance capabilities that make it easier for utilities to adhere to complex rules and regulations that come with distributed assets.

But DERMS have been slow off the block, at least at scale, in part due to the complexity of utilities’ wide swaths of customer needs. Still, some utilities have deployed DERMS platforms successfully →

• Pacific Gas & Electric and Schneider Electric last year announced a cloud-based DERMS platform called EcoStruxure DERMS. Once fully launched, the software will make quick DER connections, respond to extreme weather conditions, and monitor demand.

• Eversource Energy is using DERMS, along with smart-switch technology and storage, to integrate over 2 GW of DER in Massachusetts. But utility-scale DERMS are still new for the company, and using customer-owned DER as grid assets will require “compensation frameworks” approved by regulators, an Eversource Energy exec said.

Looking ahead: Two more utilities are in early stages of planning for potential DERMS systems in an effort to study customer behavior and stabilize the grid through customer-owned resources. Duke Energy is scoping out more predictive analytics, sensors, and machine learning tech, and Xcel Energy is trying to figure out the what, where, and when of its own tech advacements.

Want to read more about how utilities are leveraging DERMS technology? We’ve got a brand new Energy Central Special Issue out today, covering the realities, the possibilities, and the future of harnessing distributed energy.

Unpacking the MISO Transmission Boost

MISO (aka Midcontinent Independent System Operator) is getting a boost after Minnesota regulators approved two 345 kV transmission projects last week to more easily move electricity across the region.

• The 200-mile Big Stone South-Alexandria-Big Oaks project (a team effort from Xcel Energy, Great River Energy, Minnesota Power, Otter Tail Power, and the Western Minnesota Municipal Power Agency) is the first of an 18-project effort to 1) reduce grid congestion in Minnesota and the Dakotas and 2) enable more low-cost wind and solar to reach customers, an Xcel energy exec told Energy Central.

• The 150-mile Mankato-Mississippi project is designed to improve energy distribution in the southeast region to the Mississippi River.

FYI: MISO is the largest RTO in the US, operating in 15 states from Texas to Wisconsin and Louisiana to North Dakota.

Why it matters: Similar project approvals are likely in the other 14 states in MISO, Minnesota PUC Commissioner Joseph Sullivan told Energy Central. As utilities add solar and wind renewable projects, grid instability becomes a pressing concern.

That’s where transmission upgrades come in.

But…it's costly. Land can cost around $13,000 per acre, towers can cost up to $635,000, and regulatory permitting can cost over $2,000 per acre, as one Energy Central expert pointed out. Ratepayers can often end up shouldering chunks of those costs.

Sullivan said, when compared to the cost of adding more power plants, “transmission is cheaper than generation.” For every dollar spent on these two projects, ratepayers will get $2.60 back.

“Though the headline numbers may appear expensive, the projects return more value than they cost,” Ellis said.

While we’re here: This project will also help surrounding RTOs such as PJM—which is struggling to add transmission, Sullivan said. MISO’s approach (with numerous stakeholder energy companies coming together) could set an example. American Electric Power, Dominion Energy Virginia, and FirstEnergy proposed a similar joint effort on Monday.

Three Numbers to Know: Storage Edition

The US storage market is thriving—quarterly deployments were up 86% from last year during Q2, according to a new report from Wood Mackenzie. Here are three other important stats to know today. →

• The US added 3 GW of energy storage in Q2, which is the largest capacity installed for that quarter in history.

• Grid-scale storage led the charge in Q2 with 2,773 MW or 9,982 MWh.

• The average price of a grid-scale battery energy storage system (BESS) declined 34% annually in the second quarter.

Why it matters: Although battery suppliers are delaying, downsizing, or canceling domestic manufacturing investments, the market is still reeling in investor interest.

The Energy Central Wire

The best of the rest in energy headlines

• While Tampa Bay recovers from Helene, Hurricane Milton has hit the Gulf Coast—here’s an outage map.

• Sierra Club reports that the largest US utilities are off track to hit ESG goals.

• Rivian shares sink 9% after supply chain issues led the EV maker to cut production targets.

• Toyota invests an additional $500 million to support commercial production of EV air taxis.

• The DOE will award up to $3 million to nonprofit educational organizations that promote interest in clean energy careers.

• A lawsuit involving Alabama Power could expand renewable energy adoption in the state.

Thank you for being here. If you’re a Florida reader, stay safe. We’ll see you all back here on Tuesday. Want to bring a friend? Forward them this email or send them here.