The growth of distributed energy resources (DERs) is decentralizing energy production and management. The century-old model of centralized electricity production, transmitted in one direction for many miles at high voltage is changing. Onsite generation, battery storage, demand response, electric vehicles and energy efficiency have all contributed to this reshaping of the electric utility landscape. Joint Action Agencies, Associations and even individual electric utilities need to address the reality of DER growth so that they can benefit from its advantages and reduce the potential for negative impacts to their organizations and customers.

While the penetration of DERs has been steadily increasing due to declining costs of these resources, their growth over the next decade is expected to be exponential. Here’s why. Material and installation costs are declining while efficiency of DERs is increasing due to technological advancements. Electric utility customers are demanding greener and cost-effective energy options as they electrify. And there is regulatory support encouraging the integration of DERs such as the Federal Energy Regulatory Commission’s (FERC) Order Number 2222. The primary objective of this mandate, better known as FERC 2222, is to better enable participation by DERs in electricity markets run by regional grid operators. FERC’s directive, coupled with State and Federal mandates and policies, along with corporate goals around decarbonization are all expected to contribute to a future of high DER penetration in various jurisdictions around the country.

The question Public Power entities should be asking is not if their jurisdictions will see a high DER penetration, but how they can enable higher DER penetration to their advantage? This requires a paradigm shift at the distribution grid, where presently the utility is only managing a passive network - buying power from the Bulk level and distributing it to consumers, to a more active network – with two-way power flows from prosumers (producers + consumers), enabling cost-effective deep electrification.

An answer to the question of how to enable higher DER penetration lies in creating the right incentives that would encourage more such resources to be connected. And this is where the Distribution System Operator (DSO) model enters the picture. While many variants of the model may exist, from a thirty-thousand-foot view, in a DSO model, either a Joint Action Agency, Association, or the distribution utility takes on the role of a market facilitator. That market facilitator manages a distribution-level electricity market, much in the same way an Independent System Operator (ISO) manages a bulk-level electricity market. But the model can be customized based on local regulations and requirements.

Essentially the DSO framework allows the right incentives to be created for compensating DERs such that their true value to both the local and bulk grid can be correctly captured. For example, if unprecedented load growth on a particular feeder or station within a utility’s territory is requiring the utility to consider costly infrastructure upgrades, can the utility instead procure generation or load reduction from local resources on that feeder or station to defer or avoid the infrastructure upgrade? While a one-off situation like this might be handled by the existing framework through setting up some form of a demand response program, as the need for these infrastructure upgrades increases, the requirement to optimize the resources on the distribution grid, i.e. DERs, would increase. That would be the role of the DSO. The DSO model can provide significant advantages for all stakeholders. The DSO model extracts maximum value from DERs, provides grid flexibility, and takes a customer-centric approach to power supply decisions.

DSO Advantages for Public Power

The DSO model provides definite advantages to public power. First, it provides improved asset utilization and diversifies the local energy portfolio. It gives individual utilities the opportunity to work with customers who have on-site generation in new and exciting ways. By acting now, Public Power can set the standards for DSOs, with Public Power providing innovation and leadership in this important area.

The success of implementing the DSO model will require overcoming an array of challenges. As with most disruptive advances, existing regulations and market barriers could hinder implementation. Infrastructure upgrades will be necessary. Organizational changes and access to adequate resources will be critical to success. And finally, the support of customers and other stakeholders will be keys in making this transition a reality.

Joint Action Agencies, Associations and local public power utilities should begin now to develop DER and DSO strategies. Begin now to ask these questions: What is the regulatory and policy framework in which we operate today? Based on past experience with NERC standards, it will take time to develop DSO standards. Are our members/customers ready for increased DER penetration? Who are the key stakeholders, partners, and collaborators in this transition? And finally, does our organization have a roadmap for transitioning to the DSO model? 

Thought Leaders Weigh In

Recently, Hometown Connections Partners and Affiliates formed work groups to discuss the many aspects of the DER/DSO transition. The groups covered customer and employee engagement, smart grid technology requirements, operational flexibility and grid resiliency, cyber and physical security requirements, and DER grid integration.

Robbie Tugwell of Power Secure led the DER Integration discussions. His group debated the technical and operational challenges of integrating DER’s and explored possible solutions and best practices for effective integration. His group determined that a high level of transparency and clear communication pathways will be crucial in the successful integration of DERs into a DSO model. They stressed the need for flexibility of utility assets as well as clear decision matrices and protocols.

Loreto Sarracini of Acumen and his group explored the regulatory and economic implications of DER integration. This team expressed concern that the growth of DER may lead to a more complex regulatory environment. For example, the possibility of North American Electric Reliability Corporation (NERC) reliability standards being introduced for the distribution grid, which would likely lead to additional burden on utilities, especially smaller-sized utilities. While there might be many economic benefits of incorporating DERs, utilities will have to study the impact of adopting new technologies, hiring, training and retaining personnel as well as maintaining business continuity. 

AMP’s Branndon Kelly led a discussion of the smart grid technology requirements for an effective DER/DSO implementation. They stressed the importance of grid automation in preparation for the DSO model. Joint Action Agencies (JAA), Associations and their members will need to assess their distribution networks both from a hardware and software perspective. Software for modeling day ahead demand and production such as that provided by Amperon, will be a key ingredient for success. In addition, Jillian Jurczyk of Utility Financial Solutions stressed that rate design must be addressed to ensure the correct financial incentives for DSO participants and utility customers.

The DSO model represents a significant shift in how the electric grid will be sequenced. Employees and customers alike will be affected. Brittany DeArmon of Brillion led a discussion on how utilities and JAA’s can engage, prepare and educate these stakeholders. Bob Welsh of LeverageHR pointed out that workforce and customer education increase the utility’s opportunity to participate successfully in the DER/DSO transition. Tools for informing and educating are currently available, and utilities should act now to begin to build trust through more frequent and more transparent communication.

While a higher number of smaller-sized resources spread out across the grid offer the advantages of decentralization, they will substantially increase the cyber and physical attack surface, i.e. there will be a larger number of assets that threat actors can disrupt, many of which might not be in direct control of the utility itself. Doug Westlund of Acumen said that no single cybersecurity system will address all the risks. However, utilities who follow the regulatory guidelines for cyber security and physical security, and who are committed to planning and implementing protocols will be less likely to fall victim to outside attacks. 

Finally, Randy Parole from Stem, presided over a group that explored the strategies for enhancing grid operational flexibility and resilience through the use of DER’s. They looked at energy storage, flexible load management and grid modernization. This group suggested that the first step would be to look at the existing interconnection agreements to determine if they are future-proofed or need to be updated. From there, financial incentives for existing customers with on-site DERs should be developed. 

Next Steps

What are the next steps for Public Power entities looking to prepare for the future of DERs and DSOs? Nimish Bhatnagar, Director of Energy Solutions at Acumen, suggests the first step is to conduct a DER readiness assessment. JAAs and their members should review the regulatory and policy landscape. They should review load, generation and DER forecasts and perform a technology assessment and gap analysis. This assessment should be performed now regardless of the organization’s current view of how and how soon the DER/DSO transition will transpire within their service territory.

Next, develop a DSO transition roadmap. Build a business case, enlist stakeholder engagement and assess internal capabilities. Again, have the roadmap and other due diligence completed in advance. Having clear and actionable steps in place ahead of the transition will help ensure that Public Power utilities are in the driver’s seat and able to chalk their own path before one is drawn out for them!

A complete presentation on the DER/DSO transition is available on the Hometown Connections YouTube Channel. Access it here: https://www.youtube.com/@4PublicPower

Hometown Connections would like to recognize the following Hometown Connections Affiliates and Partners for contributing to this review of DER/DSO: Acumen, AMEA, AMP, Amperon, Brillion, ElectriCities of NC, FMEA, KTI, LeverageHR, Marsh, MPUA, NMPP Energy, NCPA, Power Secure, SpryPoint, Stem, TEA, TMEPA and Utility Financial Solutions.

September 19, 2024; Louisville, KY—Virtual Peaker, a leading cloud-based grid-edge technology company dedicated to advancing the future of energy and supporting global decarbonization goals, announced today a strategic partnership with FranklinWH Energy Storage Inc. (FranklinWH), a pioneer in home energy management and battery solutions. This collaboration allows utilities to support household consumption intelligently and decrease peak load on the grid.

As the demand for sustainable and resilient energy solutions grows, this integration combines Virtual Peaker’s robust grid-edge distributed energy resource management system (DERMS) software with FranklinWH’s Home Power solutions.

Key benefits of the integration include:
 

• Enhanced Load Flexibility: Utilities can utilize advanced battery storage capabilities to manage and reduce peak loads more effectively, resulting in significant operational efficiencies and cost savings.
• Improved Grid Stability: Integrating battery storage with Virtual Peaker’s technology solution ensures a more resilient and reliable energy grid, benefiting all stakeholders.
• Increased Operational Flexibility for Virtual Power Plants (VPPs): Battery storage enhances the dynamic management and balancing of energy flows within VPPs, enabling them to better adapt to changing grid conditions and market opportunities.
• Cost Reduction for Consumers: By participating in demand response and Time of Use (TOU) programs, as well as capturing available rebates, consumers who own batteries can lower their overall ownership and energy costs.

"Virtual Peaker is committed to driving innovation in the energy sector, and our partnership with FranklinWH represents another step forward in achieving our vision," said Colin Lamb, VP of Delivery at Virtual Peaker. “By integrating our DERMS with FranklinWH’s leading battery storage technology, we offer utilities a powerful tool to enhance grid reliability and support their sustainability goals."

The integration is currently deployed with two utility customers, and more programs are scheduled for the future.

"Integrating FranklinWH battery storage technology into PGE’s Smart Battery pilot, with the Virtual Peaker platform, will enhance resilience for our customers, as well as benefit the entire grid as we build Oregon’s clean energy future," said Audrey Burkhardt, Manager of Energy Storage and Resilience at Portland General Electric.

“FranklinWH is pleased to partner with Virtual Peaker to deliver value to energy users and the grid. Together, we can leverage our advanced power systems and Virtual Peaker’s dynamic DER management solutions to deliver reliable power and financial incentives to consumers who own batteries while supporting grid modernization," said Vincent Ambrose, Chief Commercial Officer at FranklinWH.

To learn more, visit https://virtual-peaker.com/partners/device-partners/ and https://www.franklinwh.com/.

About Virtual Peaker
Virtual Peaker is a cloud-based distributed energy technology company that empowers utilities to build the grid of the future and meet global decarbonization goals. Through its cutting-edge software-as-a-service (SaaS) platform, the company seamlessly integrates distributed energy resource management system (DERMS) components, customer engagement, and load forecasting. Virtual Peaker's groundbreaking technology, Topline Demand Control, paves the way for the next generation of virtual power plant capabilities. To learn more, please visit virtual-peaker.com or connect on LinkedIn and X via @VirtualPeaker.

About FranklinWH
FranklinWH Energy Storage Inc. is the manufacturer of the Franklin Home Power system. FranklinWH is a research-driven company focused on next-generation residential energy management and storage solutions. Headquartered in the San Francisco Bay Area, FranklinWH's team has decades of experience in energy systems, from design, through manufacturing, to sales and installation. FranklinWH is AVL-listed with multiple financial institutions. Learn more about how homeowners can achieve energy independence at franklinwh.com.

Media Contacts
Amber Mullaney | amullaney@virtual-peaker.com | 502-689-0249
Kathleen Van Gorden | kathleen@doermaker.com | 401-480-1840

August 26, 2024; Louisville, KY—Virtual Peaker, a cloud-based, grid-edge distributed energy technology company that empowers utilities to build the grid of the future and meet global decarbonization goals, is proud to announce a collaborative partnership and technology integration with Mysa, a market leader in smart control for electric heating systems.

More and more utilities are preparing to manage electricity demand peaks in winter in addition to summer, especially in cold climates with a high penetration of electric heat. By controlling the energy consumption of Mysa’s thermostats connected to baseboard heating, Virtual Peaker expands the accessibility of utility demand management programs to residents in buildings without forced air heating systems. Allowing more customers to participate in demand management programs with their Mysa devices supports:

● Equity since baseboard heating is often in smaller and sometimes older
residences
● Benefits to customers that may have been previously ineligible due to
their heating system to participate in programs that offer financial
incentives
● Whole home optimization because commands are sent to each Mysa
device in a household

“Virtual Peaker’s grid-edge technology, combined with Mysa’s innovative smart thermostat solutions, provides a seamless and efficient way for utilities to manage winter demand peaks and contribute to a more sustainable energy future,” said Virtual Peaker Founder and CEO William Burke, PhD.

“Mysa is thrilled to partner with Virtual Peaker to leverage our smart home energy management technology to build a better future for our planet,” said Joshua Green, Cofounder and CEO at Mysa. “Empowering electric baseboard heating to participate in demand management programs supports equitable eligibility and expands the scale of utility grid modernization.”

Since December 2023, three utility programs, one in the Pacific Northwest and two in Eastern Canada that use Virtual Peaker’s distributed energy resource management system (DERMS) added Mysa’s smart thermostats to their portfolio of devices.

“A successful winter demand response program begins with foresight and planning,” said Steph Hsiung, Manager of Flexible Load Management at ICF. “While discomfort from cold is a common concern for customers, Virtual Peaker’s platform mitigates this by sending pre-heating commands and allowing for granular device control. Including Mysa’s smart thermostats for electric baseboard heaters in utility demand response programs provides a robust portfolio of technology that can ensure a successful winter-specific demand management strategy.”

For more information on this partnership and how it benefits energy users and the grid, please visit www.virtual-peaker.com.

About Virtual Peaker
Virtual Peaker is a cloud-based distributed energy technology company that empowers utilities to build the grid of the future and meet global decarbonization goals. Through its cutting-edge software-as-a-service (SaaS) platform, the company seamlessly integrates distributed energy resource management system (DERMS) components, customer engagement, and load forecasting. Virtual Peaker's groundbreaking technology, Topline Demand Control, paves the way for the next generation of virtual power plant capabilities. To learn more, please visit virtual-peaker.com or connect on LinkedIn and X via @VirtualPeaker.

About Mysa
Based in St. John’s, Newfoundland, Mysa’s mission is to fight climate change by empowering homeowners to take control of their energy use with innovative technology. Mysa’s smart thermostats for electric heating and cooling HVAC systems are designed to help users manage their household energy spend, decarbonize the grid, and build a more sustainable future for our planet. Since first shipping in 2018, Mysa has launched 4 products and helped hundreds of thousands of homeowners all across North America take smart control of their home’s heating and cooling without compromising on comfort. For more information visit: getmysa.com.

Media Contacts
Amber Mullaney | amullaney@virtual-peaker.com | 502-689-0249
Kathleen Van Gorden | kathleen@doermaker.com | 401-480-1840

BURNABY, BC – January 30, 2024 – Tantalus Systems (TSX: GRID) (“Tantalus” or the “Company”), a smart grid technol ogy company focused on helping build sustainable utilities for the future, announces the launch of the Tantalus Grid Modernization Platform™ (TGMP™), including TRUSync, an industry-defining grid data management system. TGMP is a technology platform that helps utilities accelerate their grid modernization efforts. The platform includes a smart grid architecture comprised of connected devices, communications networks, grid data management, applications and analytics. TRUSync, an expansion of the software acquired through Tantalus’ acquisition of Congruitive in 2022, is a ground-breaking middleware layer that delivers true interoperability and automates the integration of all utility data captured from any device, any system and any vendor.

The need for this type of platform has never been greater. In a survey of 116 utilities finalized by Tantalus in 2023, 93% said that modernizing their distribution grid was an important priority while only 11% felt completely prepared to do so. Grid modernization requires utilities to harness the power of data across all devices located throughout the entire distribution grid — from devices deployed inside the substation to distributed energy resources (DERs) and smart appliances located behind the meter.

“To modernize, utilities must shift their perspective from traditionally being device-centric to becoming data-centric,” said Peter Londa, President and CEO of Tantalus. “The real challenge confronting utilities seeking to modernize their grid is data management, not a lack of powerful connected and intelligent devices. Grid modernization requires the integration of an increasing amount of data from a growing number of connected devices in a synchronized manner. To fully achieve grid modernization, utilities must access untapped value through data interoperability.”

By offering a modular approach, TGMP enables utilities to be more surgical and strategic in their deployments while minimizing the cost of prematurely abandoning existing investments and assets. The platform delivers unprecedented levels of visibility, command and control and provides an autonomous, flexible, secure and affordable path to grid modernization.

An integral component of TGMP is TRUSync, a middleware layer that sits between a utility’s connected devices and the software applications and analytics packages that use the data those devices generate. The power of TRUSync comes from true data interoperability delivered through a groundbreaking library of protocols and data models. The software generates a unified, single version of the truth that bridges the gap between Operational Technology (OT) and Information Technology (IT). This represents a first for the industry and serves as a catalyst for grid modernization.

In addition, Tantalus is rebranding its existing suite of solutions to align the overall platform, including:

• TRUConnect™ AMI: Tantalus’ purpose-built edge computing endpoints that are capable of integrating a wide range of field devices and meters across a robust communications network and a suite of software applications.
• TRUGrid™ Automation: Tantalus’ rapidly expanding suite of applications and data analytics that leverage AI to anticipate and proactively respond to challenges arising from failing distribution equipment, such as transformers, extreme weather events or imbalances between the supply and demand of electricity.
• TRUFlex™ Load+DER Management: Tantalus’ solution to help utilities manage a wide variety of residential and commercial loads responsively, reliably and flexibly while reducing costs associated with power outages and improving operational efficiencies.
• TRUSense Gateway™: Tantalus’ innovative suite of collar-based connected devices that deliver AMI 2.0 functionality without unnecessarily ripping and replacing existing meters. These devices also capture substation-level power quality measurements at the meter socket and deliver a utility-dedicated and secure connection to DERs and smart appliances located behind the meter. TRUSense Gateways also enhance investments in fiber-to-the-home broadband initiatives.

“TGMP was designed to empower utilities to modernize the grid at their own pace,” continued Tantalus President and CEO Peter Londa. “If a utility has already deployed pieces of our platform from Tantalus or another vendor, no problem. Our focus on interoperability and our unwavering commitment to reverse-compatibility helps customers leverage existing investments and mitigate risks associated with vendor lock-in. TGMP delivers a comprehensive and unified platform that enables utilities to tackle near-term challenges while pursuing a long-term and necessary goal of truly modernizing distribution grids.”

For more information about the Tantalus Grid Modernization Platform, TRUSync, and the company’s suite of solutions, visit the company’s new website at: www.tantalus.com. 

About Tantalus Systems Holding Inc. (TSX: GRID)
Tantalus is a smart grid technology company that transforms aging one-way grids into future-proofed multi-directional grids that improve the efficiency, reliability and sustainability of utilities and the communities they serve. Our solutions are purpose-built to allow utilities to restore power quickly after major disruptions, adapt to rapidly shifting consumer expectations and population shifts, innovate new solutions based on the adoption of distributed energy resources and evolve their grid infrastructure at their own pace without needless cost or complexity. All this gives our user community the flexibility they need to get the most value from existing infrastructure investments while planning for future requirements. Learn more at http://www.tantalus.com/. 

Forward-Looking Information:
This news release includes information, statements, beliefs and opinions which are forward-looking, and which reflect current estimates, expectations and projections about future events, including, but not limited to, the adoption, performance, functionality and development of the Tantalus Grid Modernization Platform, TRUSync, TRUConnect AMI, TRUGrid Automation, TRUFlex Load+DER Management and TRUSense Gateways, the issues anticipated to face utilities relating to the modernization of the distribution grid and how those issues can best be addressed, the leveraging of broadband deployments, , the ability of Tantalus’ solutions to assist customers in addressing such issues in an effective and flexible manner, and other statements that contain words such as “believe,” “expect,” “project,” “should,” “seek,” “anticipate,” “will,” “intend,” “positioned,” “risk,” “plan,” “may,” “estimate,” or, in each case, their negative and words of s imilar meaning. By its nature, forward-looking information involves a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking information. These risks, uncertainties and assumptions could adversely affect the outcome of the plans and events described herein. Readers should not place undue reliance on forward-looking information, which is based on the information available as of the date of this news release and Tantalus disclaims any intention or obligation to update or revise any forward-looking information contained in this new release, whether as a result of new information, future events or otherwise, unless required by applicable law. The forward-looking information included in this news release is expressly qualified in its entirety by this cautionary statement.