• DERMS increase co-ops’ monitoring, management, and optimization capabilities with larger DER portfolios.  

• Expanded control and visibility of DERs potentially create new revenue streams and a more modern, decentralized grid for the co-op.  

• More comprehensive management enables the growth of renewable and low-carbon generation, storage, and curtailment-based resource integration into the distribution and transmission network while simultaneously giving customers more autonomy in the way they procure electricity.
   

The low costs and scalability of DERs, policy frameworks for monetization of DER orchestration, and customer benefits are key opportunities for cooperatives and their consumer members.  

DERs like solar, wind, and BESS are cost-effective and quickly deployable generation options for both consumer members and cooperatives. In an industry experiencing rate increases, low-cost options proximal to the point of consumption can mitigate the need for expensive fossil generation and grid upgrades. They can also lower consumer members’ electric bills by reducing their reliance on power from the grid with DER generation. Fuel diversification provides an additional benefit by creating a hedge against often volatile coal and natural gas prices ensuring rate stability and energy security and reliability.  

In the event that DERs remain cost-prohibitive, curtailment-based resources like smart thermostats and water heaters can provide similar benefits by reducing demand during peak hours and freeing up capacity for other uses or for resource adequacy requirements.  

Finally, in some cases, DER aggregation and orchestration via DERMS can yield new pathways for broader energy market involvement through federal policy frameworks. FERC Order 2222, passed in 2020, enables DERs to participate in wholesale markets. For G&Ts and FERC regulated cooperatives which may lack the utility-scale generation and DERs of other utilities, FERC 2222 presents an opportunity for additional revenue generation and benefits.