Analyst Insight: DER Management Platforms

The market for DER management technologies, while still relatively nascent, is poised for significant growth over the next decade and beyond. Guidehouse Insights classifies these solutions into three major categories: IT/OT systems, renewables monitoring & control (M&C), and DER analytics.

IT/OT systems include advanced distribution management systems (ADMS), grid- and edge-based distributed energy resource management systems (DERMS), virtual power plant (VPP) management systems, and local flexibility market platforms. M&C refers to plant- and fleet-level M&C software tools for utility-scale solar PV plants, wind farms, and energy storage systems. DER analytics encompass a broad range of DER, DR, and energy management analytics applications. These technologies are further detailed and disaggregated in the Guidehouse Insights report “Market Data: DER Management Technologies.”

This Analyst Insight examines how the pool of industry stakeholders continues to grow and widen, as utilities, energy retailers, aggregators, developers, EV companies, smart appliance manufacturers, and others continue to capitalize on this emerging, high-growth market. Globally, DER management spending is expected to grow from $6.6 billion in 2021 to nearly $24.8 billion in 2030, at a compound annual growth rate (CAGR) of 15.9%.