Distributed Energy Resource Management System (DERMS) Cybersecurity Scenarios, Trends, and Potential Technologies: A Review
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Managing the digitalization of increasingly diversity energy resources is a complex challenge for energy systems planners and managers. As the penetration of solar photovoltaics (PV) and other distributed renewable energy resources (DERs) expands, distributed energy resource management systems (DERMS) will play an increasingly important role in managing, monitoring, and controlling DERs as electric systems before more distributed, interconnected, and networked. However, the cybersecurity implications of DERMS deployments are not well understood today. A lack of understanding around the cybersecurity implications of DERMS deployments and variability in the security posture of DERMS vendors, owners, and operators could introduce new security risks to evolving electric power systems. This paper describes cybersecurity attack scenarios on DERMS, identifies related cybersecurity standards and guidelines, reviews the security features of state-of-the-art DERMS solutions, and offers cybersecurity guidance for DERMS vendors, owners, and operators to protect DERMS' unique capabilities. Standardizing cybersecurity requirements for DERMS could help improve the security of DERMS integrations and improve innovations that are more secure by design. The cybersecurity guidance found in this paper is intended to offer a unified approach and lay the foundation for future standardization of DERMS cybersecurity to reduce risk to the solar industry and other renewable energy stakeholders when integrating these technologies with electric power systems.
This project aims to promote lab-proven clean energy technology to commercially scalable versions of the technology, integrate the technology with broader systems, provide extended performance data, and validate the manufacturability and reliability of the technology. The lab-proven technology, RT-OPF DERMS, was developed and validated through previous U.S. Department of Energy-funded efforts, including Advanced Research Projects Agency-Energy funding under the Network Optimized Distributed Energy Systems program and Holy-Cross Energy High Impact Project. In the Advanced Research Projects Agency-Energy Network Optimized Distributed Energy Systems project, the RT-OPF DERMS was developed and implemented in multiple hardware platforms, demonstrating its performance and capabilities in the lab and field environments. The technology was also evaluated and matured via a participation in the U.S. Department of Energy I-Corps program, whose goal is to pair teams of researchers with industry mentors for an intensive 2-month training in which the researchers define technology value propositions, conduct customer discovery interviews, and develop viable market pathways for their technologies. These activities indicate the high technology maturity and Technology Readiness Level of the RT-OPF DERMS.
Virtual Power Plants (VPPs) are aggregations of DERs that can balance electrical loads and provide utility-scale and utility-grade grid services like a traditional power plant. This presentation covers VPP definition, State-of-the-Art, Grid Architectures, Example VPP studies, VPP Standards, and VPP Roadmap.
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The electrical distribution landscape is rapidly transforming due to the proliferation of distributed energy resources (DERs) such as solar panels, wind turbines, battery storage systems, combined heat and power units, and electric vehicles, introducing variability and uncontrollability that traditional grid operators are ill-equipped to manage. This transformation is further accelerated by advancements in Information and Communication Technology infrastructure that connects control centers with end devices, demanding automation and a deeper understanding of new technologies by utility personnel. Advanced grid control techniques using system-level optimization, Artificial Intelligence, and Machine Learning at the enterprise level and distributed level are evolving to address these issues. There is also an opportunity to utilize the enormous data created by these new DER technologies in the grid. Advanced Distribution Management Systems (ADMS) and Distributed Energy Resource Management Systems (DERMS) are critical in addressing these challenges by automating grid operations and enhancing reliability. Given the relatively recent development of ADMS and DERMS, and the still relatively low level of ADMS and DERMS deployment in the industry, there is a notable deficiency in the comprehensive understanding of the challenges and benefits associated with these new technologies, especially with their complementary natures and integration architectures. This paper aims to bridge the knowledge gap in ADMS and DERMS integration, presenting three distinct integration architectures currently available, and discussing the challenges and benefits of each architecture to guide utilities, industry professionals, and researchers in optimizing grid management and decision-making processes for a resilient and efficient energy future.
The core function of the distribution grid is to provide electricity to consumers affordably, reliably, and securely. In pursuing these core objectives, distribution utilities are accountable to customers, regulators, and in some cases, shareholders. Other third parties such as aggregators and microgrids can also have a stake in the smooth operation of the grid. Each of these stakeholders has economic, business, and/or governance objectives that inform their expectations of the distribution grid. This multi-objective, multi-stakeholder environment creates tension that must be reconciled to successfully design and operate the distribution grid. Innovative companies are competing to bring high-tech solutions to electric utilities and their customers that address each of these objectives. Many developers of advanced distribution management systems (ADMS) and distributed energy resource management systems (DERMS) have adopted a modular architecture that allows grid operators to select functions and features according to their individual system needs. A modular platform also allows the solution provider to develop and integrate specific new product modules; however, the need to pursue multiple objectives with a fixed set of controllable devices makes integration expensive whether it is done at the product development stage or the deployment stage. This cost creates a significant barrier to adoption and can lengthen the product to market time of new solutions. To fundamentally address the complexity of system integration for distribution grid operations, the U.S. Department of Energy Office of Electricity has funded the GridAPPS-D project at PNNL, which streamlines integration by contributing to standards development, defining system architecture, applying advanced mathematics, and developing open-source software to demonstrate the concept of an open data-integration platform for distribution operations. The open data-integration platform concept enables system operators and solution providers to deploy ambitious, best-of-breed applications (or apps) without continually reengineering for integration. Ambitious apps developed by different solution providers will inevitably attempt to achieve different control objectives with the same set of controllable devices. If the open platform itself can resolve these conflicts in a way that achieves the best available outcomes for all apps, doesn’t restrict the ambitious design of apps, and ensures safe and secure operations, apps will be able to plug-and-play with the platform at the same time as other ambitious apps. In this paper, we describe a framework called App Deconfliction that empowers a platform to assign setpoints to controllable devices based on the values preferred by different apps (and even external stakeholder entities like customers or aggregators). The App Deconfliction framework is compatible with several methods for determining setpoint values. We present two methods based on game theory that provide a subtle built-in incentive structure for developers to adapt their apps to the fact that they will be operating in a moderated multi-app environment and to favor device setpoints that have the most effect on their objectives over those that have the least effect. Our simulation-based demonstrations have shown that game-theory-based deconfliction can lead to a 7% improvement in control space utilization compared to design-based methods.
As part of the U.S. Department of Energy’s EVs@Scale initiative, the Next-Gen Profiles (NGP) project provides a comprehensive, data-driven analysis of electric vehicle (EV) and electric vehicle supply equipment (EVSE) operations across real-world fleet deployments. This paper presents findings from the NGP’s Fleet Utilization study, which investigates operational behavior and asset usage across seventeen EV fleets and two EVSE fleets, encompassing a wide range of vehicle types and use cases. Data collected from diverse sources—varying in format and temporal resolution—are first reformatted into a unified structure. From this harmonized dataset, a suite of rigorously defined performance metrics is calculated at an hourly cadence, enabling consistent cross-comparison of charging, routing, and other key operational behaviors. Amid rapidly increasing EV adoption and growing demands for energy-efficient fleet operations, the analysis reveals clear utilization trends—including diurnal and weekly activity cycles, differences in short versus long charging session dependencies, and route-specific energy usage patterns. These findings highlight the need for tailored infrastructure strategies and the deployment of advanced energy management systems, such as Distributed Energy Resource Management Systems (DERMS) and Site Energy Management Systems (SEMS), which can optimize charging schedules and mitigate peak loads. By leveraging anonymized, harmonized datasets and standardized metrics, this study offers critical insights into fleet behavior and performance, providing a foundation to improve operational efficiency, reduce costs, and enable the scalable deployment of electrified transportation.
This paper proposes an online data-driven distributed energy resource management system (DERMS) for distribution system optimal DER dispatch as well as voltage regulation. Here, the key innovation is to leverage the Local Sensitivity Factor (LSF) for transforming the DER control into a computationally efficient linear programming (LP) problem. By taking real-time measurements, the estimation of LSF eliminates the need for an accurate distribution system model as well as full nodal load information, which is difficult to achieve in practice. A robust recursive least squares method is also developed to ensure the robust estimation of LSF, which is initialized using reasonable values from model-derived LSFs. This allows the system to adapt to changing operational conditions effectively. A scenario-based, chance-constrained framework is further employed to ensure voltage remains within acceptable limits in the presence of measurement and estimation uncertainties. Test results on a real-world, 759-node distribution network located in western Colorado, U.S., validate the effectiveness and robustness of the proposed control approach and demonstrate its superior performance as compared to alternative methods.
Presentation for Procurement webinar providing technical guidance for entities, procuring Battery Energy Storage Systems (BESS), Inverter Based Resources (IBR), Distributed Energy Resource Management Systems (DERMS) and other energy digital systems and services on how to incorporate cybersecurity requirements into the procurement process to enhance both supply chain security as well as entity-specific supply chain risk management (SCRM) programs.
Across the United States (U.S.) grid expansion and modernization is underway, paving the way for accelerated load growth and intelligent resource management. Digitization of the grid is supported by several state and federal programs, providing support for utilities installing advanced metering infrastructure (AMI), AI-powered analytics systems, battery energy storage systems (BESS), and distributed energy resource management systems (DERMS) to transform the grid from a one-way power delivery system into an intelligent, responsive network that will enable faster load growth and power expansion of data centers for advanced artificial intelligence (AI) applications. The digital transformation of America's grid presents opportunity for increased efficiency and resiliency but also introduces new digital risks that require careful management. Digital equipment often contains several vulnerabilities such as unencrypted communication protocols, and persistent remote access capabilities that could be exploited to manipulate device settings, coordinate service disruptions, or inject false data into grid operations. These digital risks become particularly important as the grid must rapidly scale to support AI-driven data centers, which the administration has identified as essential for maintaining U.S. technological leadership and economic competitiveness. These vulnerabilities are compounded by supply chain realities: Chinese manufacturers currently produce 70-90% of essential grid components including inverters, batteries, and control systems, with the U.S. lacking domestic manufacturing capacity for critical assets like extra-high voltage transformers. Recent federal legislation has established Foreign Entity of Concern (FEOC) restrictions to address these risks, requiring projects to achieve escalating thresholds of non-FEOC content to receive tax credits while utilities work to expand sourcing channels for their supply chains and strengthen security measures. These restrictions arrive precisely when utilities face unprecedented electricity demand growth driven by the rapid growth in data centers, creating a considerable challenge: rapidly expanding infrastructure while navigating complex compliance requirements while lacking viable alternatives for many critical components. Idaho National Laboratory (INL) and its partners have developed practical approaches to help utilities navigate these intersecting challenges as they leverage federal investment to strengthen and grow the grid. These solutions include Cyber-Informed Engineering (CIE) principles that build resilience directly into systems, the Cirrus tool for secure cloud migration, and enhanced procurement guidance that embeds security requirements throughout equipment lifecycles. Federal initiatives, such as the Technical Assistance for Digital Assurance (TADA) project, provide direct support to utilities implementing these approaches while facilitating knowledge sharing across the industry. While these tools and frameworks cannot eliminate all risks inherent in foreign supply chain dependencies, they offer pragmatic pathways for strengthening security posture without sacrificing the deployment momentum essential to meeting surging electricity demand. Ultimately, securing America's digital energy infrastructure demands dedicated coordination across multiple fronts: building domestic supply chains, implementing robust digital assurance practices, and maintaining the aggressive modernization timeline necessary for reliability, resilience, and energy independence.
The internet information that is used by the Energy Grid of Things requires both preventative security measures as well as surveillance measures. The preventative security measures include certificates, encryption, and all of the basic security protocols as defined by published standards. The surveillance measures include monitoring information flow activities and evaluating these messages for indications of potential security attacks. We describe in this paper the utilization of a Distributed Trust Model that was developed specifically for monitoring communication within an Energy Grid of Things. The goal for the Distributed Trust Models is to provide a level of aggregate trust that a Distributed Energy Resource Management System can meet its grid service obligations, as opposed to a detailed individual Distributed Energy Resources assessment.
The National Renewable Energy Laboratory (NREL) and Smarter Grid Solutions (SGS) plan to present a case study on their implementation of SGS' Strata Grid Distributed Energy Resource Management System at NREL's Energy Systems Integration Facility (ESIF). The ESIF is one of the nation's premier energy systems integration laboratory facilities focused on development and deployment of clean energy technologies and resilient delivery systems. NREL looked for a DERMS to install at the ESIF that is capable of replicating real world scenarios to control and monitor distributed devices from small residential scale to the grid substation level. The DERMS system demonstrates the use cases of beneficial operation and coordination of modern grid devices, leverage DERs for improved grid planning and operation, demand-side management and customer engagement through bidirectional communication with utilities and energy market operations. The presentation will cover the delivery strategy of NREL and SGS, how the use cases help NREL's research, and NREL and SGS plan to expand the system and use cases.
Recent advances in smart inverters offer opportunities to mitigate adverse grid impacts caused by high penetrations of distributed photovoltaics (PV) in distribution grids, such as voltage violations. Here, this paper proposes a novel measurement-driven optimal power flow (OPF)-based distributed energy resource management system (DERMS) voltage regulation via recursive sensitivity estimation informed coordinated control of distributed PV inverters. The proposed approach leverages available grid and controllable DER measurements, eliminating reliance on system model information while being adaptive and robust to volatile operating conditions. A mean-corrected recursive ridge regression (MCRRR) algorithm is proposed for sensitivity estimation, continuously refining the sensitivity model through a closed-form solution. It effectively manages varying grid operating conditions, such as changes in power injections and topology reconfiguration, to facilitate a time-varying update of the Load Sensitivity Factors (LSF). The proposed approach is formulated as a linear programming (LP) problem and is thus scalable to larger-scale distribution systems. Its effectiveness and efficiency are demonstrated on a realistic distribution feeder with high PV penetrations in Southern California, USA.
The rapid growth of distributed energy resources (DERs), especially photovoltaic (PV) systems, has introduced new complexities in maintaining grid reliability, stability, and cost-effective operation. This project addresses these challenges by developing and demonstrating a scalable GridOS Distributed Energy Resource Management System (DERMS) that enables secure, real-time optimization and control of DERs at the distribution feeder level.
San Diego Gas & Electric Company (SDG&E) installed America’s first and largest utility-scale microgrid in Borrego Springs in 2013. The first generation Borrego Springs Microgrid utilized diesel generators to form and stabilize the microgrid island, with support from grid-scale batteries and local solar photovoltaic (PV) generation. In this project, SDG&E in partnership with National Renewable Energy Laboratory (NREL) demonstrated through modeling, simulation and utility field testing that blackstart and islanding of the microgrid can be led with 100% renewable, inverter based resources (IBRs), to help reduce community reliance on conventional generation resources. Through equipment upgrades, grid-forming island leader capability was transitioned to a battery IBR instead of the Borrego Springs Microgrid diesel generators. A new microgrid controller was integrated to the microgrid and programmed to control and manage multiple energy storage systems. Synchrophasor and other power quality data verified autonomous, high-speed response of the IBRs through blackstart, islanding, and load step testing. Results of project field evaluations provide distribution systems operators (DSO) with increased confidence that renewable, IBR can replace traditional generators to blackstart and island microgrids and rapidly establish stable island frequency with rapid changes in peak power demand. Importantly, the project validated the integration feasibility of a distributed energy resource management system (DERMS) controller that manages multiple grid-forming and grid-following IBRs, establishing a standard design interface to reduce the complexity of integrating new DERs in the future and supporting replication by the industry. As a result of learnings in this project, SDG&E has implemented the microgrid controller strategy at multiple other microgrid sites, thereby validating the replicability of the solution. Hardware-in-the-loop (HIL) simulations including power and controller HIL hardware — along with electromagnetic transient (EMT) simulations of Borrego Springs Microgrid —informed adjustments to inverter parameters and were important to characterize the performance of the IBRs in relevant operating conditions before deployment. The EMT and HIL simulations of islanding the entire community are important contributions in providing confidence in IBR performance prior to future islanding of the community in the field. High-fidelity EMT and/or HIL simulation of IBRs can de-risk field operations, and its relevance and importance as a tool is increasing as distribution grids and microgrids become more complex and dynamic with an increasing proportion of renewable generation, distributed energy storage, and two-way power and energy flows.
This presentation provides an overview of NREL's Advanced Distribution Management System (ADMS) Test Bed Use Case 5: Federated DERMS for High PV Systems.
Microgrids have long provided resilience to critical facilities such as hospitals and military installations, and they are now increasingly being looked at as a building block for future grids to support the energy resilience needs of the grid of the future. State-of-the-art technologies, such as blackstart algorithms using renewable distributed energy resources (DERs) to effectively and seamlessly form microgrids, have been produced by national labs over the years. Their adoption by the utility industry would be critical to reap the most benefits toward energy and climate resilience, and the pathway is via commercialization of these self-assembling microgrid algorithms by integrating them in a commercial product platform. This project brings a national labs team (LLNL, LANL) together with a vendor (Smarter Grid Solutions) to perform proof-of-concept integration of the algorithms into the vendor’s commercial Distributed Energy Resources Management System (DERMS). The project provides a strong pathway to commercialization of the algorithms thereby promoting adoption of resilient microgrid technology by utilities to offer resilience benefits to all customers and especially to disadvantaged and underserved communities.