Energy Technology Companies Target DERMS Providers for Growth

In late December 2021, GE Digital announced it would be acquiring Canadian software company Opus One Solutions. One of Opus One’s software product offerings is a distributed energy resources management system (DERMS) module that helps utilities optimize energy planning, operations, and market management. The companies are currently working to integrate their respective DERMS platforms so that their customers have a comprehensive solution available to them.

This move by GE is part of a growing trend where established energy technology providers, even ones with DERMS platforms of their own, have started acquiring or partnering with smaller, more specialized DERMS providers. This trend is discussed further in the most recent Guidehouse Insights Leaderboard: DERMS Vendors report.

Distributed energy resources (DER) adoption in all regions of the world is expected to increase as the decade progresses. As such, utilities and grid operators will need to seek out more advanced software solutions such as DERMSs to successfully and optimally manage, control, and dispatch the large number of DER deployed in their territories.

Consolidation Encourages DERMS Development and Deployment

In 2020, Generac acquired Enbala, a provider of real-time DER orchestration software. In late 2021, Generac announced it was forming a new group through the acquisition of Enbala called Generac Grid Services, which would continue to use the software developed by Enbala. The group is looking to expand the presence of the software by leveraging Generac’s global sales network.

Schneider Electric is the largest investor in AutoGrid, an energy flexibility software provider founded in 2011. In January 2020, the companies announced they would be fully integrating their advanced distribution management system (ADMS), DERMS, and flexibility platforms to create a more advanced DERMS. By integrating their solutions, Schneider Electric and AutoGrid are aiming to enhance the experience of grid operators, utilities, and customers to hopefully increase DER adoption levels.  

In December 2021, Yokogawa Electric acquired PXiSE Energy Solutions, a grid control technology company formed in San Diego, California, in 2016. Yokogawa’s extensive experience managing and deploying control systems for conventional power plants around the world and energy management systems for large buildings and factories will allow PXiSE to further develop and strengthen its DERMS platform.

Smarter Grid Solutions, a UK software company specializing in DERMSs, was acquired by Mitsubishi Electric Corporation in August 2021. Mitsubishi Electric’s global presence and experience with various electronic products and control systems will help Smarter Grid Solutions expand the reach and capabilities of its DERMSs.