Why Traditional Demand Response and Existing DERMS Platforms Are Falling Short in the Era of Electrification

The Growing Challenges of Traditional Demand Response and DERMS

The DOE report underscores a key issue: traditional demand response programs and many current DERMS platforms lack the capabilities to support the growing diversity of DERs or address the dynamic needs of electrified grids. Here’s why these limitations matter:

1. Limited Focus on Peak Events

Traditional DR programs were built for a narrow purpose: managing demand during peak summer days, typically 10-15 times per year. However, this approach falls short in today’s energy landscape, where electrified loads like EV chargers and electric appliances drive year-round grid demand. The DOE report highlights the growing need for flexible, continuous load management to address these constant and variable pressures, ensuring grid reliability in the face of rising electrification.

2. Fragmented Device Ecosystems

DERMS platforms often struggle to support the growing diversity of DER device types, or they limit integration to a few manufacturers. This creates a bottleneck for utilities and CCAs trying to leverage DERs for grid flexibility. The inability to orchestrate all behind-the-meter (BTM) devices as a cohesive system results in inefficiencies and missed opportunities to fully utilize DER potential.

3. Manual, Inefficient Processes

Traditional DR programs rely heavily on manual processes, requiring customers to adjust their consumption during specific events. This lack of automation makes it difficult for utilities to respond to real-time grid fluctuations. The Virtual Power Plants 2025 Update highlights the need for automated, dynamic optimization to manage grid complexities effectively.

4. Neglecting Routine Load Shifting

Both traditional DR and early-generation DERMS platforms undervalue the importance of daily or hourly load shifting. As dynamic rate tariffs and time-of-use pricing become the norm, managing routine energy use is critical. Existing solutions often lack the tools to automate this process, leaving utilities, CCAs, and aggregators unable to maximize grid efficiency.

The Shift to Dynamic Rate Tariffs

Dynamic rate tariffs are becoming essential for balancing supply and demand in real time. These tariffs incentivize customers to shift energy use based on grid conditions, unlocking significant flexibility and enabling greater integration of renewable energy. For example, PG&E and SCE are piloting dynamic flex pricing programs in California, offering variable rates to encourage off-peak energy usage.

However, as highlighted in the DOE report, the success of such programs depends on advanced systems capable of real-time optimization and orchestration. Traditional DR programs and many current DERMS platforms lack the necessary tools to automate and manage these dynamic demands effectively, limiting their ability to deliver the full value of flexible load management. This underscores the urgent need for next-generation platforms that can rise to the challenge of dynamic pricing and grid flexibility.

How MosFusion Addresses These Gaps

Molecule Systems’ MosFusion platform serves as both a foundational enabler and an infrastructure provider for the modern energy ecosystem. Rather than replacing traditional DR and DERMS platforms, MosFusion integrates seamlessly with them, directly supporting utilities, CCAs, and aggregators. By delivering scalable, hardware-agnostic infrastructure, MosFusion acts as a middle layer, enhancing the capabilities of existing systems, empowering them to manage electrified loads and optimize grid performance with greater efficiency and precision. Additionally, as highlighted in the DOE report, MosFusion accelerates the deployment of VPPs and DR initiatives, enabling faster time-to-market for critical grid solutions. Here's how:

• Real-Time Optimization: MosFusion enables dynamic orchestration of behind-the-meter DERs, aligning grid demand with real-time conditions.

• Scalability Across Devices: Its hardware-agnostic design integrates diverse DERs, simplifying complex ecosystems without additional hardware constraints.

• Seamless Integration: MosFusion complements and enhances existing DR and DERMS platforms, reducing implementation hurdles and enabling rapid deployment of VPPs and DR initiatives.

• Enhanced Customer Engagement: The platform empowers end-users with tools for active participation in grid programs, increasing adoption rates and program success.

By addressing the gaps identified in the DOE report, MosFusion provides utilities, CCAs, and aggregators with a scalable, future-proof infrastructure to modernize grid operations, enhance reliability, and unlock the full potential of distributed energy resources.

Why It Matters

As the DOE report emphasizes, VPPs and advanced DR solutions are critical to meeting the challenges of a rapidly evolving grid. MosFusion not only bridges the gaps left by traditional solutions but also positions utilities and CCAs to thrive in the new energy landscape. By enabling reliable, automated, and scalable DER management, MosFusion ensures that organizations can meet both operational and customer needs effectively.

Discover how MosFusion can transform your demand response programs and unlock the full value of electrified loads. Contact us to learn more.

About the Author

Adam Boucher is the CEO of Molecule Systems and a visionary leader in energy technology. With a deep commitment to innovation and sustainability, Adam has spearheaded the development of advanced energy solutions like MosFusion and MosVPP. Under his leadership, Molecule Systems is transforming how distributed energy resources are managed and monetized, empowering a cleaner, smarter energy future.

Connect with Adam:
Email: adam@moleculesystems.com
LinkedIn: Adam Boucher on LinkedIn