Market Trends: Distributed Energy Resource Management Systems (DERMS)
15 Apr, 2025
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Executive Summary
The rise of decentralized energy resources has introduced more complexity to electricity networks – and challenges around grid congestion, bidirectional power flows and voltage instability. Traditional grid management systems were not designed for this level of decentralization, necessitating the emergence of distributed energy resource management systems (DERMS). This report informs organizations on the current DERMS functionality helping utilities, aggregators and market participants optimize DER integration while ensuring grid reliability and efficiency. Additionally, the report provides insights into market segments and portfolios of solutions, the vendor ecosystem, and trends and future pathways for DERMS.
Summary for decision-makers
Complexity of electricity systems calls for greater interconnection, visibility and control of assets
Power generation is increasing and decentralizing to support widespread electrification
The rise of distributed renewable energy sources brings new challenges
DERMS emerged to mitigate DER management challenges
Players at each stage of the electricity value chain are potential DERMS buyers
Two kinds of DERMS – grid and edge – address market needs
Seven functionality areas define today’s DERMS space
The DERMS spectrum: one size does not fit all
The road ahead for DERMS: barriers to overcome and market trends
Widespread adoption of DERMS still faces obstacles
Introducing three different pathways for DERMS
Complexity of electricity systems calls for greater interconnection, visibility and control of assets
Power generation is increasing and decentralizing to support widespread electrification
The rise of distributed renewable energy sources brings new challenges
DERMS emerged to mitigate DER management challenges
Players at each stage of the electricity value chain are potential DERMS buyers
Two kinds of DERMS – grid and edge – address market needs
Seven functionality areas define today’s DERMS space
The DERMS spectrum: one size does not fit all
The road ahead for DERMS: barriers to overcome and market trends
Widespread adoption of DERMS still faces obstacles
Introducing three different pathways for DERMS
Figure 1. Global electricity consumption trends: 2000 to 2050
Figure 2. Global power generation trends: 2000 to 2050
Figure 3. UK generation and demand profiles: July 1 and Jan 1
Figure 4. Position of DERMS in the electricity system and interaction with different system segments
Figure 5. Edge vs grid DERMS
Figure 6. DERMS functionality
Figure 7. DERMS solutions ecosystem
Figure 2. Global power generation trends: 2000 to 2050
Figure 3. UK generation and demand profiles: July 1 and Jan 1
Figure 4. Position of DERMS in the electricity system and interaction with different system segments
Figure 5. Edge vs grid DERMS
Figure 6. DERMS functionality
Figure 7. DERMS solutions ecosystem
Organisation for Economic Co-operation and Development (OECD), IRENA (International Renewable Energy Agency), Pacific Northwest National Laboratory (PNNL), International Energy Agency (IEA), Scottish Power, Schneider Electric, Amberside Energy, Iberdrola, GE Vernova, Itron, US Federal Energy Regulatory Commission (FERC), CGI, IEEE (Institute of Electrical and Electronics Engineers), AspenTech, UK Power Networks, Uplight, Amazon, KrakenFlex, ExxonMobil, OpenADR Alliance, Smart Electric Power Alliance (SEPA), US Department of Energy, UK National Energy System Operator (NESO), ev.energy, EnergyHub, Smarter Grid Solutions, Emerson, Honeywell
About the Authors
Hector Aguirre
Industry Analyst
Hector is an Industry Analyst at Verdantix, where he delivers actionable insights to energy technology vendors, utilities and services firms, helping them navigate the energy …
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Ryan Skinner
Research Director
Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc…
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