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By Jasjeet Singh, Principal Architect – DERMS, GE Vernova, Heather Tat, Product Marketing Manager – DERMS, GE Vernova, Douglas Moore, Solution Architect Leader, GE Vernova
The global energy landscape is undergoing a transformative shift, and Australia is at the forefront of this revolution. With over 3.92 million solar PV installations generating more than 37GW of capacity, Australia’s energy transition has been uniquely consumer-led, driven by its 27 million residents. This shift offers tremendous opportunities, but also introduces significant challenges for the nation’s energy ecosystem.
The increasing integration of distributed energy resources (DERs) and customer energy resources (CERs) has fundamentally redefined energy dynamics. On sunny days, CERs can produce enough electricity to meet entire states’ demand, often resulting in reverse power flows. These conditions place immense pressure on network operators to maintain grid safety and reliability. Managing minimum system load (MSL) has become particularly challenging for the Australian Energy Market Operator (AEMO), prompting interventions like Victoria’s emergency backstop and Western Australia’s emergency solar management measures. Similar regulatory mandates are expected to emerge nationwide.
As these challenges evolve, distribution network service providers (DNSPs) must transition into distribution system operators (DSOs), capable of orchestrating a grid that integrates diverse energy resources seamlessly. This transition is pivotal for achieving a reliable, resilient, and sustainable grid.
The critical role of technology in DSO transition
The shift from traditional distribution network service providers (DNSPs) to distribution system operators (DSOs) represents a paradigm shift in energy management. As grids become more dynamic and decentralised, DSOs must move towards orchestrating a network where DERs and CERs play increasingly critical roles in maintaining stability and efficiency. Transitioning to a successful DSO model calls for significant advancements in four key areas:
- Data and insights: The proliferation of CERs and DERs has created an influx of data from millions of sources. To ensure stability and resilience, DSOs require robust data management and analytical tools to transform information into actionable insights. Advanced forecasting, real-time monitoring, and AI-driven predictive models allow operators to make informed decisions and long-term plans.
- Automation and control: Manual grid management is no longer sufficient for today’s dynamic energy systems. Automation enables faster, proactive, and precise grid operations, while advanced control systems optimize interactions between CERs, DERs, and existing grid infrastructure. For example, automated flexibility dispatch programs or demand-response systems can dynamically adjust loads in response to real-time grid conditions, thus mitigating stress on the network.
- Collaborative ecosystems: The modern energy ecosystem is no longer confined to a single operator. DSOs must work closely with a wide array of stakeholders, including regulators, DER aggregators (DERAs), and flexibility service providers (FSPs) to create a collaborative framework. Establishing DER marketplaces in Australia’s National Electricity Market (NEM) and Western Electricity Market (WEM) can facilitate innovative solutions such as virtual power plants (VPPs) and energy-as-a-service models, enabling cost-effective grid management.
- Regulatory alignment: As mandates evolve, DSOs need to adopt standards and protocols that ensure compliance while fostering innovation and grid modernization. Continued adherence to evolving policies, like Australia’s emergency backstop regulations, two-sided markets, and National CER Roadmap are essential to enabling a sustainable transition. These foundational elements enable DSOs to address challenges like reverse power flows, MSL management, and grid resource optimisation, creating a more flexible, dynamic, and resilient energy ecosystem.
Flexible network planning for a dynamic grid
As CERs and DERs continue to proliferate, traditional grid expansion strategies—like building new substations or upgrading transmission infrastructure—are no longer sustainable. Instead, future networks need to be flexible enough to handle intermittent sources of energy and DNSPs must adopt hybrid strategies that integrate physical upgrades with non-network solutions.
Non-network solutions, such as demand flexibility and load shifting, enable utilities to meet growing energy demands without excessive capital investment. Advanced forecasting tools, for example, can predict peak periods and enable demand-response programs that incentivise consumers to adjust energy usage during critical times, reducing stress on the grid.
Optimising DERs and CERs under a unified objective
One of the most significant challenges DSOs face is integrating all active CERs and DERs into a single, unified view that can be optimised with respect to both. This requires advanced optimisation algorithms capable of balancing multiple outcomes, including grid stability and economic efficiency.
For instance, during emergency backstop measures, targeted multi-objective, function-based optimization can help to alleviate periods of minimum or zero demand stress on the network while minimising unnecessary solar curtailments and ensuring grid stability.
Enabling VPP market participation
VPPs represent a transformative opportunity for DSOs. By aggregating CERs and DERs into coordinated portfolios, VPPs can provide essential grid services such as frequency regulation and voltage support. These capabilities are critical for maintaining grid stability as traditional synchronous generators are phased out.
The economic benefits of VPPs are equally compelling. A study by the Brattle Group estimates that VPPs could save utilities tens of billions of dollars in capacity investments. DSOs can unlock these savings by leveraging VPPs to enhance reliability and unlock new revenue streams through market participation.
Ensuring regulatory compliance
Australia’s regulatory landscape is rapidly evolving to accommodate the growing presence of DERs and CERs. Adopting protocols like the Common Smart Inverter Profile (CSIP-Aus) ensures consistent communication with and control of CERs across the grid.
DSOs must also comply with specific state mandates, such as AEMO’s ongoing emergency backstop measures, which are designed to address critical grid challenges like MSL management. These mandates require DSOs to adopt advanced control systems capable of responding dynamically to changing grid conditions, while also accounting for any regulatory mandates.
Enable grid orchestration with GridOS
GE Vernova’s GridOS DERMS is uniquely positioned to empower DSOs with advanced tools to manage the rapid expansion of DERs. Serving more than 90 customers worldwide and managing more than 127 million utility service points, GridOS DERMS offers a comprehensive suite of modular applications designed for the full DER journey—from their initial integration and visualisation to real-time control and optimisation.
Key features of GridOS DERMS include:
• Advanced forecasting for better planning and operation.
• Robust system violation resolution for enhanced reliability.
• Real-time DER management and dispatch to optimise grid performance.
• Economic optimisation through market integration, enabling DSOs to unlock additional revenue streams.
By dynamically connecting CERs and DERs, GridOS DERMS ensures that utilities meet regulatory standards, such as the Regulatory Investment Test (RIT), while optimising overall grid performance. The system also facilitates VPP integration, connecting grid insights with market participation for DERAs, large-scale asset owners, and FSPs. Moreover, it securely manages communication protocols tailored to local requirements like CSIP-Aus, seamlessly integrating with global systems such as SCADA and ADMS.
Built on the GridOS platform, part of the industry’s first end-to-end grid orchestration software portfolio, GridOS DERMS combines modern architecture with secure, scalable solutions tailored to meet the demands of a decentralised energy future.
Transforming the grid for a decarbonised future
Transitioning to a DSO model is more than an operational necessity—it’s an opportunity to completely redefine the energy landscape. By effectively managing DERs and CERs, DSOs can unlock the full potential of a dynamic grid, creating a win-win-win scenario for regulators, network operators, and consumers alike.
With DSO-tailored solutions like GridOS DERMS, utilities are well-equipped to succeed in a future that calls for autonomous grid orchestration. This not only accelerates the energy transition but also ensures reliability, economic efficiency, and sustainability in an increasingly complex energy landscape.
Citations: Australian PV Institute: Australian Photovoltaic Institute • Market Analyses
Brattle: Virtual Power Plants (VPPs) Could Save US Utilities $15-$35 Billion in Capacity Investment Over 10 Years – Brattle
