Distributed energy resource management systems—DERMS: State of the art and how to move forward

Abstract Due to an ever‐increasing rise in proliferation of distributed energy resources (DERs), the paradigm of passive electrical distribution networks is shifting toward active distribution systems. This new environment introduces a plethora of challenges that cannot be managed by traditional tools, whose utilization could compromise the reliability and efficient operation of distribution feeders. This article systematically reviews state of the art in different DERs management software solutions available today. Additionally, it establishes distinguished roles and responsibilities of different levels of hierarchy in distinct solutions that are all commonly called DERs management systems—DERMS (e.g., fully centralized versus fully decentralized DER management solutions). Lastly, it offers a viewpoint on the directions that hold potential for the power system community and industry to explore for further developments of more robust and intelligent DERMS, to successfully enable efficient transition into a new era of clean and sustainable power systems, encompassing active and dynamically changing distribution circuits. This article is categorized under: Climate and Environment > Net Zero Planning and Decarbonization Energy and Power Systems > Distributed Generation Energy and Power Systems > Energy Management