North American DER Management Systems 2017: Market Evolution, Competitive Analysis and Forecast

For decades, distribution utilities have taken on the role of owning, operating and maintaining distribution grid assets to earn a regulated profit. Today, however, customers are driving a vast increase in the amount of distributed energy resources (DERs) such as solar and energy storage.

These customer-sited DERs create risk the industry must manage to maintain safe and reliable electricity. Effective management of DERs through technology and utility planning also provide financial and operational benefits for utilities, wholesale markets, and customers, incentivizing the evolution of this developing market.

Current software-based platforms create a siloed, incomplete and point-application technology ecosystem. Future evolution of these "DER management systems," or "DERMS," points toward enabling the continuous management of diverse and dispersed DERs, both individually and in aggregate, to support multiple objectives related to distributed grid operations, end-customer value and market participation.

This report provides insight into:

• Definition of DERMS and how they are distinguished from similar grid edge technologies
• Market drivers in the U.S. and Canada
• Vendor profiles and their respective DERMS products and services
• An approximation of the size and growth of the DER management system market

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Table of Contents

• 1. Overview and Key Findings
• 2. Framing the DER Management Opportunity
• 3. The DER Management Technology Ecosystem
• 4. Insights From DERMS Deployments
• 5. Analysis of the DERMS Vendor Landscape
• 6. DERMS Vendor Profiles
• 7. Market Forecast for DERMS Technology and Implementation
• 8. Conclusion
• 9. Appendices

List of Figures

1. Overview and Key Findings

• Utility DER Lifecycle Management Process
• Mapping Legacy and New Utility Systems to the DER Lifecycle Process
• Real-Time DER Lifecycle Systems

2. Framing the DER Management Opportunity

• Present and Future Installed DER Capacity in the U.S.
• DERMS Market Activity Spurred by Solar PV Penetration
• Illustrative Results From Hosting Capacity Analysis

3. The DER Management Technology Ecosystem

• Key Utility Operational Systems
• The Vision: Integrated, Comprehensive, Holistic Management
• Today's Reality: Siloed, Incomplete, and Point-Application Management
• Illustrative View of Enterprise DERMS
• Illustrative View of DERMS Solutions Types: Central, Edge and Fleet
• Central DERMS Solutions Functions
• Edge DERMS Solutions Functions
• Fleet DERMS Solutions Functions
• Enterprise DERMS Solutions Functions
• DERMS Marketing is Evolving Along Fleet, Edge and Central Lines

4. Insights from DERMS Deployments

• DERMS Projects Cross U.S. With Concentrations in CA, HI, NY
• Midsize Utilities Lead in DERMS Project Count
• U.S. Projects Driving Market Evolution for Central DERMS Applications
• U.S. Projects Driving Market Evolution for Fleet DERMS Applications
• Scale and Funding for DERMS Projects in the U.S. and Canada
• Two-Thirds of Projects Are Limited in Number of DER Types Covered
• Majority of Projects Only Address One DER Segment
• DERMS Project Announcements Rise in Recent Months
• Half of All Projects Focus on Fleet DERMS Applications

5. Analysis of the DERMS Vendor Landscape

• The DERMS Vendor Landscape and Areas of Domain Expertise
• Three Key Models for Sale of DERMS Technology and DERMS-Enabled Services
• Venture Investment in DERMS Technology Vendors Covered in This Report
• Venture Investment in DERMS by Vendor, 2010 - 2017
• DERMS Technology Vendors Acquisitions, 2015 - 2017

7. Market Forecast for DERMS Technology and Implementation

• Illustrative Timeline of Investment in Grid Modernization by Large Investor-Owned Utilities
• Forecasted Spending on DERMS Technology and Implementation in the U.S. and Canada, 2011 - 2021E
• Forecasted Spending on DERMS Technology and Implementation by Segment
• Cumulative Spending by Segment, 2017 - 2021
• Range of Forecasted Spending on DERMS Technology and Implementation in the U.S. and Canada