The increasing penetration of Distributed Energy Resources (DERs) is fundamentally transforming the electricity grid from a centralized model to a decentralized, active, and dynamic distribution network. This shift introduces complexities such as reverse power flows, feeder overloads, and voltage regulation challenges, which traditional management tools cannot adequately address. Distributed Energy Resource Management Systems (DERMS) have emerged as a promising solution for monitoring, control, and optimization of DERs, though the concept remains novel and lacks a universally accepted definition and standardized functionalities. The literature and industry practices reveal a fragmented approach, with DERMS typically divided into centralized (Utility) DERMS, focused on medium- to large-scale front-of-the-meter (FTM) DERs and groups of DERs, and decentralized (Aggregator) DERMS, managing portfolios of behind-the-meter (BTM) DERs such as residential solar and batteries. However, there seems to be a growing consensus on the need to integrate these hierarchical levels into a single solution for all DERs. This work seeks to bridge these gaps by clarifying the scope these systems and developing a comprehensive functional architecture for DERMS that can accommodate both centralized and decentralized DER management. The architecture is designed to ensure broad applicability, offering seven distinct declinations tailored to various stakeholders, regulatory frameworks, and market structures, and proposing a modularization strategy to enable its integration with the existing software platforms and operational requirements of the different clients, whether they require an end-to-end solution or selective upgrades to their management systems. The validation of the architecture through industry case studies and an assessment of market readiness demonstrates (i) the interest for a single and comprehensive DERMS solution that can help utilities and DSOs, but also third-party aggregators to manage both FTM and BTM resources, and (ii) the need for this solution to be modular and adaptable to the particularities of various clients and use cases, as well as the technical feasibility and practical advantages of a modular approach. This work, therefore, aims at providing a solid foundation for further understanding, development, and implementation of DERMS, paving the way for more efficient DER management.
Ginés Martínez Rivera
