Why Interoperability Is the Key to DERMS Success 

The Challenge of Fragmented Operational Technology

Utilities have long relied on operational technology systems like SCADA (Supervisory Control and Data Acquisition), and ADMS (Advanced Distribution Management Systems) to monitor and control grid operations. These platforms were often developed decades ago, designed for vertically integrated utilities and predictable load patterns.

The rise of DERs has disrupted that paradigm. Suddenly, utilities must manage:
- Bidirectional power flows from generating DER like solar and storage
- Dynamic load profiles driven by EV charging and flexible demand
- Localized reliability concerns as distributed assets cluster in certain neighborhoods

These challenges expose the limitations of legacy OT systems. Many were built as standalone platforms with proprietary protocols and rigid architectures. As a result, they struggle to “talk” to each other, without costly custom integrations. Vendor lock-in further compounds the issue, making it difficult for utilities to adapt quickly or scale efficiently.

For example, a utility may have a SCADA system that cannot share real-time voltage data with its DERMS (Distributed Energy Resource Management System), leading to gaps in grid visibility. This prevents the latter from making informed decisions on inverter settings, reactive power dispatch, or voltage regulation. This can lead to voltage excursions, equipment stress, and outages, especially during periods of high DER penetration. Likewise, an ADMS that cannot receive DERMS control signals during a demand-response event misses opportunities to rebalance load and optimize feeder performance, increasing costs and reducing reliability.

These gaps don’t just cause inefficiencies; they raise operational risk. Without full situational awareness, utilities struggle to maintain voltage standards, prevent reverse power flow, and avoid unnecessary curtailment. In severe cases, lack of coordination can trigger cascading feeder issues. Relying on a single vendor adds another vulnerability: a fault or cyberattack in one component can compromise the entire stack. This underscores why interoperability through open standards and modular integration is essential for flexibility, resilience, and security.

Why Interoperability Matters

Interoperability, the ability of different systems and devices to exchange and interpret data consistently, is not just a technical preference. It’s a necessity for DERMS (and other utility OT systems) to deliver on their promise.

For utilities, interoperability is not just a technical checkbox; it’s a strategic imperative. Regulators and policymakers are increasingly mandating DER integration, while customers demand more control over their energy choices. Utilities that fail to modernize risk experience:
- Higher costs due to inefficient operations and redundant systems
- Reduced reliability from fragmented control and visibility
- Diminished customer trust stemming from poor engagement and service

On the other hand, utilities that embrace interoperable OT and DERMS gain:
- Operational flexibility to balance supply and demand in real time
- Resilience against outages and extreme weather events through distributed control
- Market opportunities via participation in wholesale markets and ancillary services
- Customer satisfaction by enabling new programs like virtual power plants and dynamic pricing

Benefits of Interoperability

Utilities today operate in a fragmented landscape of legacy systems (ADMS, EMS, SCADA), third-party platforms, and diverse DER technologies. Interoperability ensures seamless communication across these diverse systems, enabling real-time DER coordination and visibility. Interoperability isn’t just about connecting systems but rather about enabling safe, reliable, and scalable grid operations.

Holistic Grid Visibility: DERMS requires real-time data from SCADA, ADMS, and field devices to make informed decisions. Without interoperability, DERMS operates with blind spots, undermining efficiency. For instance, if a DERMS cannot access feeder-level voltage data, it may inadvertently trigger inverter curtailments or fail to respond to voltage excursions.

Coordinated Control: A DERMS may optimize solar inverters or batteries, but if it cannot coordinate with distribution management systems, it risks creating conflicts, such as voltage violations or unintended load shifts. Interoperability ensures that control actions are synchronized across platforms, preventing operational disruptions.

Scalability: As DER adoption accelerates, utilities need systems that can scale without costly custom integrations. Interoperable OT allows new DERs to be onboarded quickly and consistently, reducing engineering overhead and accelerating time-to-value.

Customer Engagement: Many DERs are customer-owned. Interoperability ensures that utilities can integrate customer assets into grid operations while respecting contractual boundaries and providing visibility. This enables programs like virtual power plants, dynamic pricing, and real-time energy feedback, enhancing customer satisfaction and participation.

How to achieve Interoperability

Interoperability requires a deliberate strategy that combines technology, architecture, and integration expertise. Interoperability begins with a foundation of open standards but achieving it in practice requires more than compliance. Utilities need systems that not only support these standards but also integrate seamlessly across diverse platforms and protocols. Four key standards shape this foundation:

1.       OpenADR (Open Automated Demand Response) enables secure, automated communication between utilities and customer-side DERs, making demand response scalable and reliable.

2.       IEEE 2030.5 (Smart Energy Profile 2.0) is widely adopted for solar and storage integration, supporting secure, bidirectional communication between DERs and utility systems.

3.       IEC 61850 is the global standard for substation and grid automation, enabling interoperability across protection, control, and monitoring systems.

4.       Common Information Model (CIM) provides a shared data model for utility systems, allowing consistent data exchange across diverse platforms and vendors.

These standards reduce the need for custom interfaces and accelerate integration, but they’re only part of the solution. Utilities often operate in mixed environments with legacy systems, proprietary protocols, and evolving DER use cases. Interoperability should enable flexibility, not slow deployment. Modular architectures allow utilities to implement core functionality quickly while maintaining the ability to scale for future use cases.

Interoperability isn’t just about connecting systems; it’s about creating a platform that adapts as utilities grow, and their needs change. By combining standards of compliance, deep system integration, modular architecture, and proactive data strategies, utilities can deploy solutions that are fast, scalable, and ready for tomorrow’s grid challenges.

How MEPPI achieves Interoperability in Practice

At Mitsubishi Electric Power Products, Inc. (MEPPI), interoperability is at the core of our DERMS design philosophy. With over two decades of experience and more than 30 global deployments, we understand that integrating DERMS is never a one-size-fits-all solution. Every utility has unique operational constraints, regulatory requirements, and technology stacks. That’s why our integration team works closely with each client to configure our Grid DERMS product, Strata Grid, for their specific environment; bridging legacy systems, aligning with standards, and ensuring seamless integration across the grid.

The Strata Grid DERMS product is engineered to communicate across the entire utility ecosystem using all major industry protocols, including ICCP, DNP3, Modbus, IEC 61850, OpenADR, and CIM, as well as API-based integrations. Beyond protocols, Strata Grid connects directly to ADMS, EMS, SCADA, GIS, AMI, planning tools, outage management systems, and historian databases, as well as external platforms such as DER registration systems, DER aggregators, wholesale markets, interconnection processing tools, and OEM gateways. This full-stack interoperability provides end-to-end visibility and control across both front-of-the-meter and behind-the-meter DERs, enabling coordination with ISO markets, local flexibility markets, and edge DERMS.

Strata Grid’s modular architecture is a key differentiator. Rather than forcing utilities into rigid, monolithic systems, Strata Grid allows them to build exactly what they need, thus optimizing speed of implementation and cost efficiency. This flexibility, informed by real-world lessons from diverse deployments over decades of DERMS experience, enables rapid implementation (often within six months), lowers integration costs, and future-proofs utilities for evolving use cases like virtual power plants, microgrids, EV integration, and non-wires alternatives. Interoperability isn’t just about connecting systems; it’s about creating a platform that adapts with utilities.

Strata Grid also addresses common adoption barriers such as incomplete network models or limited DER visibility. Strata Grid fills these gaps by leveraging historian data, planning tools, and real-time telemetry, allowing utilities to deploy a robust operational system without waiting for perfect data. This lowers the barrier to entry and accelerates the timeline for realizing DER value.

Ultimately, MEPPI’s DERMS delivers more than connectivity. Strata Grid delivers speed, reliability, and confidence. By supporting open standards, integrating across the grid stack, and leveraging a modular architecture, we provide utilities with a fast-acting, highly responsive system configured to their unique requirements.

Conclusion

The energy transition is accelerating, and legacy systems alone no longer meet the needs of a modern utility. DERMS are emerging as critical tools for managing the complexity of a decentralized grid. Yet DERMS cannot operate effectively without interoperable technology. By breaking down silos, adopting open standards, and prioritizing integration, utilities can unlock the full potential of DERs.

The smart grid of the future will not be built on isolated and single-vendor systems. Instead, it will bring together the best-in-class solutions leveraging interoperability, the connective tissue that allows DERMS and OT to work together in harmony. With MEPPI’s experience, integration capabilities, and standards-based approach, utilities can confidently embrace this future.