A new report from Navigant Research explores how advanced distribution management systems (ADMSs) and distributed energy resources management systems (DERMSs) are enabling the Energy Cloud transition.
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, which must manage and control an ever more complex electrical grid. According to the report, electric utilities will rely on the integration of existing ADMSs and DERMSs to effectively manage changing business and network conditions.
“While dozens of solutions are being explored by utilities, ADMSs and DERMSs are emerging as consensus winners in the Energy Cloud future,” says Michael Kelly, research analyst with Navigant Research. “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.”
For ADMS and DERMS vendors, Navigant Research recommends focusing on flexibility, functionality, and interoperability. In addition, developing integration expertise, enabling modularity, and creating standardized product delineation can foster competition going forward.
The report, Optimizing DER Integration and Grid Management with DERMS and ADMS, 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.