4Q 2018

Optimizing DER Integration and Grid Management with DERMS and ADMS

The global electric power industry is facing a fundamental shift from centralized generation toward a mix of distributed energy resources (DER) and smart grid solutions. This mix, known as the Energy Cloud, is challenging utilities that must manage and control an ever more complex electrical grid. Advanced software solutions are increasingly required for utilities to adjust to this changing landscape. While dozens of solutions are being explored by utilities, advanced distribution management systems (ADMSs) and DER management systems (DERMSs) are emerging as consensus winners in the Energy Cloud future.

As grid operators globally face new challenges, those charged with managing the grid are turning to sophisticated IT systems. The Energy Cloud breaks the existing linear value chain and causes significant disruption to energy suppliers and network managers. Navigant Research anticipates that distribution network operators will transform into distribution service orchestrators responsible for more than just network operations. New business models will require new IT infrastructure, which relies heavily on the analysis of huge volumes of data. Electric utilities will rely on the integration of existing ADMSs and DERMSs to effectively manage these changing business and network conditions. The global market for these management solutions is expected to grow across all markets as utilities look to improve operational efficiencies, reduce costs, and mitigate the disruptive impacts of DER.

This Navigant Research report examines the drivers behind ADMS and DERMS deployments and how these solutions enable the Energy Cloud transition. The study discusses evolving needs in the electric power industry today, explores new business models, and compares investments in ADMSs and DERMSs to those in other IT systems. It also explains why utility planning is critical for seamless deployments of ADMSs and DERMSs and provides recommendations for stakeholders on how to target this nascent market.

Pages 20
Tables | Charts | Figures 6
  • What major factors are leading utilities to reassess their grid management strategies?
  • Why are utilities increasingly demanding a modular approach to IT?
  • What factors are helping to drive the market for advanced distribution management system (ADMS) and DER management system (DERMS) solutions?
  • What factors are inhibiting the market potential for ADMSs and DERMSs?
  • What are the major capability gaps among ADMS and DERMS solutions?
  • What are the most important trends in the ADMS and DERMS space today?
  • How large is the market for ADMSs and DERMSs relative to other smart grid IT systems?
  • Utilities and grid operators
  • DER owners
  • Smart grid vendors and service providers
  • Non-utility providers
  • Systems integrators
  • Government agencies
  • Research community
  • Investor community

Spark

Context

Recommendations

Solution Definitions

The Energy Cloud Demands New Grid Management Solutions

ADMSs and DERMSs Enable the Energy Cloud Transition

Traditional Distribution Management Systems Will Be Insufficient

Evolving Needs Demand a Modular IT Approach

Smart Grid Demands Sophisticated ADMSs

DER Is Driving the Need for ADMSs and DERMSs

Real-Time Control Is Required

Value Stacking through Integration

New Business Models Rely on New IT Infrastructure

Meeting Regulatory Compliance Requirements

Moving to TE

ADMS and DERMS Investments Are Growing at a Faster Pace Than Other IT Systems

Growing Vendor Landscape

Utility Planning Is Critical for Seamless Deployments

Communications Networks Must Be Extended and Enhanced

Compensation and Incentives Will Be Required

Data Integrity Is Critical

Solid Change Management Processes Should Be Established

Vendors Must Focus on Flexibility and Functionality

Improve Administrative and Procedural Functionality

Develop Integration Expertise

Integrate DRMSs with Other Systems and Expand Capabilities

Focus on Interoperability as a Core Component

Provide Higher Level Granularity

Keep an Eye on Software as a Service

Maintain Flexibility

Enable Modularity to Become the Norm

Evolve Capabilities in Real-Time Control

Remain Price Competitive Because ROI Will Always Be Vital

Develop Standardized Product Delineation

  • The Energy Cloud
  • Annual Installed DER Power Capacity by Region, World Markets: 2017-2026
  • Smart Grid IT Revenue by System, World Markets: 2018 and 2026
  • Year-over-Year Smart Grid IT Revenue Growth by System, World Markets: 2018-2026
  • Solution Definitions
  • ADMS and DERMS Vendor Landscape
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