What Is Distributed Energy Resource Management (DERM)?

Distributed Energy Resource Management (DERM) refers to the software platforms, control systems, and technologies that manage, coordinate, and optimize distributed energy resources (DERs) such as solar panels, wind turbines, battery energy storage systems, and behind-the-meter backup generation.

As the U.S. power grid and distribution grid edge continue to decentralize, an energy resource management system plays a crucial role for grid operators, distribution system operators, and energy providers in balancing supply and demand, maintaining grid stability, improving grid reliability, and enhancing grid resilience while supporting the broader energy transition.

As advanced distribution management systems, virtual power plants play an important role in monitoring energy usage and creation and using software systems to provide power where it's needed.

At e2Companies, our Virtual Utility^® platform actively manages DERs across multiple commercial and industrial sites.

This integrated approach helps customers improve uptime, reduce energy costs, and earn revenue through grid participation.

Learn more about distributed energy resource management and our approach to energy resilience.

Key Takeaways

• Distributed energy resource management enables the real-time control and optimization of distributed energy assets, including renewables and energy storage.
• DERMS platforms improve visibility, reliability, and sustainability of local and regional grids.
• e2Companies' Virtual Utility^® offers backup power and grid support, ensuring continuous operations for commercial and industrial customers.

The Role of DERs in Energy Systems

DERs are reshaping energy systems by allowing local generation and storage to offset grid demand. With DERM, utilities and energy operators can aggregate and dispatch DERs like a centralized power plant, also known as a virtual power plant (VPP).

e2Companies goes a step further with its Virtual Utility^®, which not only aggregates and dispatches DERs but also manages power reliability across multiple customer sites.

This ensures facilities can operate independently of the grid during outages or instability, while supporting utilities through demand response and grid stabilization.

Challenges of Integrating Distributed Energy Resources

Utilities and large energy users often face integration challenges due to:

• Disparate communication protocols
• Variable output from renewables
• Difficulty forecasting local load and supply
• Limited visibility across DER networks

e2Companies addresses these issues through its Virtual Utility, which combines on-site power generation with real-time monitoring, advanced analytics, and integration with renewable resources to create a seamless energy platform.

It can provide uninterruptible power during grid events and dynamically adjust energy flow in real-time.

Optimizing DER Usage for Network Reliability

DER optimization is essential for improving grid performance. With distributed energy resource management, grid operators can:

• Use data to predict when commercial and residential property owners will use the most power, including when they are most likely to charge electric vehicles
• Shift or store energy to reduce peak load costs
• Improve uptime for mission-critical operations
• Increase energy efficiency for electric utilities

This is especially relevant in high-growth regions like Texas and Florida, where grid congestion and extreme weather events make energy autonomy and reliability top priorities. The right energy resource management system can help consumers keep power affordable by diversifying production so these areas aren't only relying on electric utilities.

How DERMS Works

A Distributed Energy Resource Management System (DERMS) is software that communicates with all DER assets in a network. It uses real-time telemetry, predictive analytics, and automation to optimize energy use.

For instance, e2Companies’ platform provides:

• Instantaneous switching between grid, generator, and battery power
• Smart dispatch based on load priority and energy pricing
• Advanced forecasting for demand spikes or outages
• Full integration with utility demand response programs

Real-World Examples of DER in Action

General Motors

With renewable energy contracts in 11 states and on-site DER deployment, GM is on track to power all U.S. facilities with renewables. DERs are helping the company cut costs and reduce emissions across its manufacturing footprint.

PepsiCo

The company installed solar at its Dominican Republic plant, generating 62,000 kWh/month and offsetting 20% of energy needs. In Guatemala, solar supports a distribution center and has cut energy costs by 37%.

Ball Corporation

Its California site operates the state’s largest on-site solar farm, helping the company reduce Scope 1 and 2 emissions by 55% by 2030.

e2Companies supports similar outcomes through modular DER systems like the R3Di^® System, ideal for commercial and industrial customers who require uninterrupted power and grid participation revenue.

Trends in DER Management

Electrification of Fleets and Facilities

The rapid adoption of electric vehicles (EVs) and electrified buildings is transforming the energy industry, making energy loads more dynamic, distributed, and data-driven. For distribution system operators, grid operators, and energy providers, this shift creates both opportunities and challenges in managing grid stability, grid resilience, and overall power flow.

AI-Enabled Forecasting and Automation

Advanced distribution management systems and DERMS are increasingly using artificial intelligence and machine learning to predict and control energy usage. This enables real-time adjustments to distributed energy resources, such as solar panels, wind turbines, and energy storage. This optimizes power production, reducing peak demand, and improving energy efficiency.

Grid Services Monetization

DER owners, from commercial facilities to behind-the-meter energy storage operators, are monetizing their assets through participation in demand response programs, frequency regulation, capacity markets, and other grid services. These programs help electric utilities maintain grid reliability while enabling DER owners to reduce energy costs and earn additional revenue.

Cybersecurity Readiness

As DER networks expand and integrate more closely with existing grid infrastructure, cybersecurity is a non-negotiable priority. Protecting data acquisition systems, supervisory control functions, and communication between DER systems and grid operators is essential to prevent disruptions, maintain regulatory compliance, and safeguard critical infrastructure.

This convergence of electrification, AI-driven optimization, revenue generation, and secure integration underscores the importance of a robust energy resource management system in the ongoing energy transition.

e2Companies' Role in DER Management

e2Companies is pioneering an advanced form of distributed energy resource management through our patented Virtual Utility^® platform. Unlike traditional virtual power plants that primarily aggregate distributed resources, Virtual Utility^® combines aggregation, real-time control, and behind-the-meter generation to deliver unmatched resilience and operational value.

Our solution integrates mobile generation units, battery energy storage, and advanced distribution management systems to provide:

• Seamless backup power with instantaneous transfer between the electric grid, on-site generation, and energy storage—ensuring no disruption to operations during outages or grid instability.
• Revenue generation through participation in demand response programs, ancillary services markets, and capacity auctions, enabling DER owners to monetize distributed generation and storage assets.
• Sustainability, tax, and ESG advantages by tracking carbon reduction, integrating renewable energy sources such as rooftop solar and wind turbines, and controlling loads to align with Environmental Protection Agency and IEEE Power standards.

Because Virtual Utility^® functions as a complete, turnkey microgrid, it enables critical facilities in healthcare, manufacturing, data centers, and logistics to not only maintain reliable power during severe weather or grid congestion but also leverage their distributed resources to reduce energy costs, lower emissions, and support the broader energy transition.

Rethink Your Energy Future

Whether you’re managing multiple facilities or preparing for grid instability, Distributed Energy Resource Management is essential to your energy strategy. With e2Companies’ Virtual Utility^® and the R3Di^® System, you gain both energy independence and participation in the evolving power market.

Explore how e2Companies helps customers reduce downtime and control energy costs. Learn more about Virtual Utility^®.