A key concept and requirement for an operational and effective deployment of a large number of distributed energy resources (DER), which include sources of power and demand response, to enable the provision of flexibility and grid services, is the aggregation of DER. This aggregation function, as well as the functions required to enable grid services, are provided by DER management systems (DERMS). A functional specification for a DERMS and a description of the grid services that aggregated DER can provide the distribution and transmission systems is provided by this guide. Implementation issues and the interoperability requirements of a DERMS with its environment, including the transmission and distribution systems, and the communication and information infrastructure of modern grids are addressed by this guide.

This document provides a guide for the development of a functional specification for distributed energy resources (DER) management systems (DERMS). It includes guiding principles for the application and deployment of DERMS and DERMS control systems, addresses the basic functional requirements, and proposes a set of core functions. These include: DER discovery, visualization, and monitoring of active and reactive power flows and voltage at specific nodes; DER production estimation and scheduling, and dispatch of active and reactive power; DER ancillary services provision, including voltage and frequency control/ support. The approach is extended to virtual power plant (VPP) control systems.

The purpose of the DERMS is to aggregate and dispatch multiple DER, coordinate their operation in the electric system, and optimize their output. With the increased deployment and penetration of DER, aggregation of DER can be an effective approach to integrate DER into the planning and operation of distribution systems and transmission systems.