DERMS is a software-based solution, which offers control and flexibility required to effectively manage the distributed energy resources at the grid. These resources include solar photovoltaic, energy storage, fuel cells, and other major resources. DERMS is relatively a new concept and tend to have higher degree of adoption rate in the regions where high distributed and renewable power generation prevails.

COMPETITIVE LEADERSHIP MAPPING TERMINOLOGY

The DERMS market is very competitive with the presence of a few major global leading players. This segment highlights the key growth strategies adopted by them in recent years. The market players adopted various strategies to expand their regional presence and increase their market shares. New product and technology launches and contracts & agreements were the most popular strategies adopted by them to achieve growth in the DERMS market.

VISIONARY LEADERS

Vendors who fall into this category, generally receive high scores for most of the evaluation criteria. They have a strong and established product portfolio, strong market presence, and strong business strategies.

DYNAMIC DIFFERENTIATORS

These are established vendors that employ very strong business strategies such as mergers & acquisitions. However, their product portfolios are lacking when compared to the visionary leaders. These companies generally focus on a specific type of technology related to the product. They also focus on a region.

INNOVATORS

Innovators in the competitive leadership mapping are vendors that have demonstrated substantial product innovations as compared to their competitors. They have focused product portfolios. However, they do not have very strong growth strategies for their overall business, when compared with the visionary leaders.

EMERGING COMPANIES

The vendors in this category have a niche and focused product offering and are regional players. They do not have strong business strategies as compared to other established vendors. They might be new entrants in the market and may require some time before gaining significant traction in the market. Government & municipalities, industrial, commercial, residential, and military are the key end-users of distributed energy resource management systems. Industrial and government & municipalities, were the two leading end-users of distributed energy resource management system in the past and are expected to maintain their dominance in future. The industrial sector includes manufacturing, cement, mining, chemicals, and petroleum among others. Mining and chemical industries are located in remote areas where there is no proper access of electricity, from the main power grid. Ultimately, the dependency on the central power grid for power increased the overall cost of energy generation in these remote areas. The peak load of power is highest in the petroleum refining industry, followed by the chemical industry. These industrial consumers are having energy consumption of more than 350 kW. Thus, the need for immediate power demand for continuous operations in the industries has encouraged the emergence of DER, which can generate, manage, and store energy on the customer end. This growth is attributed to the rapid increase in industrial activities, especially in Asia-Pacific and rising focus on renewable energy in developed countries like the U.S. The government and municipalities sector is one of the major end-users of the distributed energy resource management system, among all other sectors. There are various programs running all over the globe, especially in North America and Europe in order to encourage municipalities to deploy renewable energy resources in their energy mix, which includes installing solar panels. Various programs launched for municipalities are Zero Emission Renewable Energy credits (ZRECS) and Low Emission Renewable Energy Credits (LRECS), to name a few. All these programs focuses on low carbon emission power generation technologies. For instance, the U.S. government made various renewable electricity tax policies such as Production Tax Credit (PTC), Investment Tax Credit (ITC), Modified Accelerated Cost-Recovery System (MACRS), and bonus depreciation. All these tax policies allows the tax credit to be taken by utilities on the amount invested in renewable resources, rather than in electricity produced by them. Hence, these policies encourage more and more investments being made by utilities in renewable power generation programs. All the programs and policies will encourage the renewable power generation and will positively trigger the DERMS market. Commercial end-users consider DER as commercial entities offering low energy prices that can deliver and optimize economical utilization of DERMS for the electricity market. ` The distributed generation in the commercial sector is continuously increasing. Moreover, the five year extension of the 30 percent federal Investment Tax Credit (ITC) will drive the market growth. This will positively drive the DERMS market which is being used in managing, controlling, and analyzing, DER installed at commercial buildings.

Distributed Energy Resource Management System

Comparing 25 vendors in Distributed Energy Resource Management System across 43 criteria.
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