Total Economic Impact
Cost Savings And Business Benefits Enabled By ADMS With Embedded DERMS
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY Schneider Electric, October 2025
Total Economic Impact
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY Schneider Electric, October 2025
By equipping electric distribution utilities with enhanced operational visibility and more effective tools for monitoring and management, modern network management platforms support the evolution of grid infrastructure while improving operational efficiency and field crew safety. These solutions can enable utilities to more flexibly integrate decentralized energy resources, which may lead to greater customer satisfaction, optimized grid performance, and accelerated progress toward decarbonization goals.
Using Schneider Electric EcoStruxure Advanced Distribution Management System (ADMS) and EcoStruxure Distributed Energy Resource Management System (DERMS) provides a comprehensive and integrated set of software tools for management of distribution power systems, which can improve network reliability, resilience, efficiency, and flexibility. It allows end users at utilities to work from a single user interface and a common single model that combines data from multiple sources while offering holistic situational awareness over their grids and can lead to making well-informed decisions as conditions vary in real time.
Schneider Electric commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying ADMS with embedded DERMS.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of ADMS with embedded DERMS on their organizations. All mentions of currency are in US dollars.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed nine decision-makers at a total of four electric distribution utilities with experience using ADMS with embedded DERMS. For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization, which is an electric distribution utility with 1.2 million metered customers over a distribution network of varied densities that has 65,000 miles (approximately 105,000 km) of distribution lines, 900 feeders, 150 substations, and 150,000 distributed energy resources (DERs). It both generates and purchases energy.
Interviewees said that prior to using ADMS with embedded DERMS, their organizations used combinations of manual effort (including spreadsheets) and multiple third-party software packages to manage their operations. Those disparate legacy systems left the organizations with limited operational and planning visibility and struggling to meet customer, regulatory, and operational needs while managing increasing challenges. The organizations were unable to fully accommodate, much less leverage, the growing number of DERs, and they faced risks and inefficiencies due to their reliance on institutional memory instead of systems and programmatic reviews.
Interviewees said that after the investment in ADMS with embedded DERMS, field crew members, control room operators, and lead energy analysts who integrate DERs into networks for electric utilities operated more efficiently. The organizations reduced their capital expenditures, fuel consumption, and outage penalties while eliminating the costs of their legacy operational management solutions.
Quantified benefits. Five-year, risk-adjusted present value quantified benefits for the composite organization include:
Time savings for field crews valued at $21.1 million. ADMS with embedded DERMS, which includes a mobile module called Field Client, reduces the time the composite’s field crews spend patrolling for faulted sections or device problems, accessing switching plans and other assignments, and conducting manual load checks. The field crews save 35% of their time, which is worth $21.1 million to the composite organization over five years.
Time savings for control room operators valued at $5.5 million. Using ADMS with embedded DERMS enables the composite organization’s control room operators to spend less time interacting with field crews, creating and checking switching plans, providing information to other parts of the organization, and assessing potential network problems, so those operators save and can reallocate 65% of their time to other needs. Over five years, these savings are worth $5.5 million to the composite.
Time savings for integration of new DERs valued at $12.1 million. By using ADMS with embedded DERMS to assess the feasibility and impact of connecting a DER to the distribution network and then integrate it, the composite organization’s lead energy analysts save 17 hours on each connection request. These savings are worth $12.1 million to the composite over five years.
Reduction in capital expenditures valued at $18.7 million. ADMS with embedded DERMS enables the composite organization to reduce its capital expenditures for grid reinforcement or expansion by decreasing energy consumption and line losses, using flexible generation and flexible service interconnections instead of network upgrades to accommodate new DERs, increasing utilization of existing grid assets, and extending the life of those existing assets. Over five years, this reduction is worth $18.7 million to the composite organization.
Reduction in outage penalties valued at $1.1 million. Using ADMS with embedded DERMS helps the composite organization reduce the duration of outages by reducing the time required to identify faulted sections, tell field crews where they need to address an outage, and create switching plans and convey them to the crews. Automatic resolution of certain outages also decreases their duration. For the composite, the reduction in outage penalties assessed by regulators is worth $1.1 million over five years.
Cost savings from retiring legacy solution valued at $3.2 million. After deploying ADMS with embedded DERMS, the composite organization retires its legacy solution, which is a combination of manual effort (including spreadsheets) and several software tools. Over five years, it saves $3.2 million on the software, infrastructure, and time needed to manage the legacy solution.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Reduced energy consumption. The Volt-Var Optimization (VVO) functionality in ADMS with embedded DERMS enables the composite organization to reduce energy consumption for its customers, which has a positive impact on customer satisfaction and regulators’ perceptions of the organization’s efforts to moderate expenses for ratepayers.
A more satisfying experience for end customers. ADMS with embedded DERMS improves the composite organization’s customer experience because the composite uses the solution to provide faster and less restrictive DER connections, more reliable service with improved quality, and more accurate and timely information about outages while enabling lower energy consumption. Reductions in capital expenditures made possible by ADMS with embedded DERMS translate into savings for the composite’s customers since those expenses drive the organization’s rate structure.
Improved safety for crews. ADMS with embedded DERMS improves crew safety for the composite organization by providing operators with additional data and programmatic analysis about potential safety issues (e.g., during switching), providing field crews with location awareness and insight on the as-operated state of the grid, and enabling faster and more accurate and comprehensive communication between control room operators and field crews.
Enhanced ability to meet regulatory requirements and preferences. ADMS with embedded DERMS helps the composite organization meet regulatory requirements, especially for emerging requirements (e.g., emergency control of DERs). Interviewees also mentioned that regulators looked favorably on their organizations’ voluntary efforts to slightly decrease their customers’ electricity bills by using VVO.
Incremental revenue enabled by flexible service connections. Using ADMS with embedded DERMS enables the composite organization to provide flexible generation connections and flexible service connections, so the composite captures incremental revenue from new load requests it previously would have been unable to service until after it upgraded grid constraint points.
Increased visibility to all aspects of the network (including DERs). ADMS with embedded DERMS enables the composite organization to replace data siloes with a single model and data source. This improves the composite’s operational visibility and enables it to manage its network operations across all voltage levels more systematically and effectively.
Enhanced decision-making. Using ADMS with embedded DERMs gives the composite organization new analytics tools and allows it to consolidate its prior data siloes into a single source and model. This allows for better-informed decision-making.
Less reliance on operators’ institutional knowledge. Advanced tools within ADMS with embedded DERMS reduce the composite organization’s reliance on operators’ level of experience and memories.
Staff time freed up to address other needs. ADMS with embedded DERMS delivers operational efficiencies to the composite organization, which frees up time its employees previously spent on various tasks so they can reallocate it to other priorities.
Increased employee satisfaction. Because ADMS with embedded DERMS improves the composite’s employee access to operational and planning information and generates more extensive data than prior systems, employees feel equipped to excel in their roles and identify new ideas for the organization. The solution lessens the operational pressure on control room operators by simplifying their communications with field crews and providing more data and thinking time to make decisions.
Costs. Five-year, risk-adjusted present value costs for the composite organization include:
Schneider Electric fees of $8.1 million. During an initial implementation phase, the composite organization buys software subscriptions and support and maintenance for several components of Schneider Electric’s EcoStruxure ADMS: Core Applications, supervisory control and data acquisition (SCADA), Switching, an outage management system (OMS), and a distribution management system (DMS). During its first year of using these ADMS components, the composite adds EcoStruxure DERMS to its existing platform. The fees to Schneider Electric include professional services, hardware, and hardware support and maintenance during both phases.
Implementation costs of $8.5 million. To implement ADMS with embedded DERMS, the composite organization uses an internal team composed of IT and operational staff augmented by Schneider Electric professional services.
Management costs of $5.2 million. The composite organization’s IT and operational staff regularly invests time to manage and maintain its ADMS with embedded DERMS deployment and the underlying model, while also exploring additional use cases.
The financial analysis that is based on the interviews found that a composite organization experiences benefits of $61.8 million over five years versus costs of $21.8 million, adding up to a net present value (NPV) of $40.0 million and an ROI of 184%.
Time savings for field crews
Return on investment (ROI)
Benefits present value
Net present value (NPV)
Payback
| Role | Geography | Metered Customers | Miles Of Distribution Lines |
|---|---|---|---|
| Power system supervising engineer | North America | 610,000 | 12,270 |
|
Head of operations technology and data Head of network strategy ADMS operations engineer |
APAC | 950,000 | 56,545 |
|
Senior director of grid transformation Technology services program director Senior manager of application delivery Manager of grid operations engineering |
North America | 3.9 million | 221,000 |
| Grid edge innovation director | North America | 5.6 million | 108,000 |
Prior to investing in ADMS with embedded DERMS, interviewees’ organizations used combinations of manual effort (including spreadsheets) and multiple third-party software packages to manage their operations.
Interviewees noted how their organizations struggled with common challenges, including:
Meeting customer, regulatory, and operational needs while managing increasing challenges. Interviewees said their organizations had difficulty meeting customer needs, addressing regulatory requirements, operating reliably and efficiently, and moderating capital expenditures while facing the increasing challenges from load and generation growth, extreme weather and wildfires, and more complex operations.
Lack of operational and planning visibility from disparate legacy systems. The organizations didn’t have comprehensive visibility across their operations, which impeded real-time grid awareness and decision-making, restricted flexibility around incorporating DERs, and hindered grid assessment and strategic planning efforts. The senior director of grid transformation said: “We’d had some one-off software solutions but never really had a distribution control system. Our primary objective was to have a distribution platform we could use to manage our grid holistically.” The head of operations technology and data said: “The models in our prior system were quite simplistic — almost a direct copy of what our geographic information system held. There wasn’t a lot of nuance there.”
Accommodating and leveraging a growing number of DERs in the utility’s service area. Interviewees said their organizations couldn’t connect customers’ DERs (e.g., solar, wind, battery storage systems) to the grid fast enough because of limited capacity to accommodate them and the significant capital expenditures and timelines involved with expanding that capacity. The organizations also lacked operational management tools to forecast the impact of DERs and maintain grid reliability as the number of DERs on their networks increased while they faced regulatory pressure to leverage DERs and load flexibility. The senior director of grid transformation said, “We had very limited — if any — visibility into what was going on with DERs and two-way power flow.”
The grid edge innovation director explained: “We were facing unprecedented load growth from new industries, data centers, EV adoption, and anticipated electrification. Many customers were applying for new service connections, but we couldn’t serve them without upgrading the grid. Our investment needs exceeded what our rates could support, so we couldn’t afford to keep building for the worst hour of the worst day. Instead, we had to plan for higher system utilization — putting more MWh through the same grid. That meant investing where utilization would be high and leveraging load flexibility elsewhere. If a grid overload only occurred 10 hours a year, we wanted to use flexibility to extend the life of those assets instead of replacing them.”
Risks and inefficiencies of relying on institutional memory instead of systems and programmatic reviews. Interviewees said that as operations became increasingly complex and challenging, their organizations realized they needed to decrease their reliance on institutional memory (e.g., individuals’ insights) and 1x1 knowledge transfer. The power system supervising engineer explained: “We had a wave of retirements coming up among our control center operators and were concerned about losing institutional knowledge. We saw advanced software tools as a way to bridge that gap for new operators. For example, if they could see real-time load flow and get instant alerts if they were going to overload something, we wouldn’t have to rely solely on manual reviews by experienced operators who know from memory which switching actions could overload a piece of equipment or drop customers.”
The interviewees searched for a solution that could:
Provide comprehensive visibility across their organizations’ operations.
Enable real-time grid awareness and decision-making.
Improve operational efficiency and system reliability.
Support grid assessment and strategic planning.
Reduce capital expenditures by improving utilization of existing assets.
Increase flexibility around incorporating DERs.
Enable a more enduring, programmatic, and scalable approach to managing operations.
The head of operations technology and data noted: “We bought ADMS because it’s an operational management platform. We understood that having a single model we could operate on and that was the source of truth was going to be incredibly important for all the things that we thought about or needed to do. Trying to operate on disparate systems or models is just a recipe for disaster when we’re trying to make operational decisions that impact the performance of the network and ultimately impact our customers.”
Based on the interviews, Forrester constructed a TEI framework, a composite organization, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the interviewees’ organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The composite has 1.2 million metered customers over a distribution network of varied densities with 65,000 miles (approximately 105,000 km) of distribution lines, 900 feeders, 150 substations, and 150,000 DERs. It both generates and purchases energy. Prior to deploying ADMS with embedded DERMS, the composite used a combination of manual effort (including spreadsheets) and multiple third-party software packages to manage its operations and planning.
Deployment characteristics. The composite implements ADMS with embedded DERMS on-premises in two phases that include integration with its requisite existing customer information system (CIS) and weather provider. The initial implementation focuses on improving operational efficiency and system reliability and resilience through key components of ADMS. These components include Core Applications, SCADA, Switching, OMS, and DMS. Specific capabilities within those components support the composite’s overall goals.
The following are key capabilities of each ADMS component the composite organization initially deploys:
Core Applications: Common user interface, standards-based integrations, operational digital twin for all levels from LV to HV, switching validations, historical trending, simulation, tracing, temporary elements, cybersecurity.
SCADA: Control Room Operations, Alarming, Protocol Analyzer, event tracking and tagging.
Switching: Advanced switching management, switching plans, work orders, safety documents.
OMS: Crew Management, Field Client, Reporting, FLISR.
DMS: Distribution State Estimation, VVO.
In the second phase, the composite adds DERMS to its existing ADMS platform. During both phases, the composite uses its internal operational and IT staff augmented by Schneider Electric professional services. The composite’s operational and IT staff invest time on an ongoing basis to continually optimize its use of ADMS with embedded DERMS and to explore additional use cases.
1.2M metered customers
65,000 miles (approximately 150,000 km) of distribution lines
900 feeders
150 substations
150,000 DERs
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total | Present Value |
|---|---|---|---|---|---|---|---|---|
| Atr | Time savings for field crews | $4,932,720 | $5,754,840 | $5,754,840 | $5,754,840 | $5,754,840 | $27,952,080 | $21,067,990 |
| Btr | Time savings for control room operators | $1,189,422 | $1,546,249 | $1,546,249 | $1,546,249 | $1,546,249 | $7,374,416 | $5,537,111 |
| Ctr | Time savings for integration of additional DERs | $0 | $4,046,000 | $4,161,600 | $4,277,200 | $4,392,800 | $16,877,600 | $12,119,442 |
| Dtr | Reduction in capital expenditures | $3,060,000 | $4,080,000 | $6,120,000 | $6,120,000 | $6,120,000 | $25,500,000 | $18,731,846 |
| Etr | Reduction in outage penalties | $240,000 | $320,000 | $320,000 | $320,000 | $320,000 | $1,520,000 | $1,140,324 |
| Ftr | Cost savings from retiring legacy solution | $697,000 | $901,000 | $901,000 | $901,000 | $901,000 | $4,301,000 | $3,230,044 |
| Total benefits (risk-adjusted) | $10,119,142 | $16,648,089 | $18,803,689 | $18,919,289 | $19,034,889 | $83,525,096 | $61,826,757 |
Evidence and data. Interviewees mentioned multiple ways in which ADMS with embedded DERMS (including Field Client) saved time for their organizations’ field crews, including:
Reducing the time spent patrolling to locate faulted sections causing outages or identifying problems with devices on the network. The head of operations technology and data said: “There are definitely savings in crew being able to go directly to the faulted section. The FLISR functionality provides more information to the control room so they can pinpoint the faulted section. That section might still be kilometers in length, but you’re not patrolling potentially nine, 10, or 11 kilometers at night. You might only have to patrol two or three.”
The power system supervising engineer explained: “Our field crews spend less time identifying problems with our capacitors now. That’s about 600 devices we communicate with. Before ADMS, the three or four people who maintain our capacitors had to just drive around looking for a red light that indicated a failed device. Now they can go directly to whichever device we’ve notified them has an issue.”
Reducing the time needed to access switching plans and other assignments and to start work on those switching plans. The same power system supervising engineer said: “We used to dispatch work over the radio, so we’d have trucks waiting until that radio freed up so they could call into the control room. Now we can send that information electronically using the software, so there’s no more idle time of crews just standing by and waiting to get their assignments. … Our field crews no longer have to deal with a manual process to get a switching plan. Before ADMS with embedded DERMS, a switching plan was created in a spreadsheet that field crews might print or would have to pull up. Now that they have the software in their trucks, everybody just logs in.”
The head of operations technology and data noted: “Field crews spend less time on the phone with the control room for switching plans since more of that can be digitally messaged. And crews are given the ability to start switching without having to call in. They can just indicate they’re onsite by executing the first step. So, there’s a lot of time savings to be had there.”
Eliminating manual load checks. The power system supervising engineer explained: “When our operators write switching plans, they use demand state estimation [of ADMS with embedded DERMS] to verify if any devices would be overloaded during that switching. This is a benefit because they used to have to do ‘load checks’ in the peak of summer loading, where they sent field crews to different sites that had devices, such as air switches, and had those personnel record amp measurements at these devices to aid the operations group in estimating load. That manual field work is no longer necessary because operators are relying on the ADMS with embedded DERMS state estimation values for loading.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Because the composite’s field crew members only use the mobile Field Client module for some of their tasks, this benefit is modeled considering only field crew members who use it significantly.
The composite has 200 field crew members with significant use of Field Client.
The composite attributes time savings of 30% for field crew members in Year 1 to ADMS with embedded DERMS. As field crew members and the organization overall get more familiar with the software, the composite attributes time savings of 35% in Years 2 through 5 to the solution.
The composite’s field crew members reinvest 75% of the time they save toward tasks that provide the organization with greater value.
The fully burdened hourly compensation (including benefits) for a field crew member is $62.
Risks. These results may not be representative of all experiences because time savings for field crew members can vary based on:
The extent to which the organization leverages the functionality of ADMS with embedded DERMS.
The organization’s prior operating processes and software (if any) for field crews.
The nature and scope of the organization’s service area.
The number of the organization’s field crew members.
Prevailing local compensation rates.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a five-year, risk-adjusted total present value (discounted at 10%) of $21.1 million.
Time savings for field crews
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|---|---|
| A1 | Field crew FTEs with significant use of Field Client | Interviews | 200 | 200 | 200 | 200 | 200 |
| A2 | Percent of time saved | Interviews | 30% | 35% | 35% | 35% | 35% |
| A3 | Subtotal: Time saved per field crew FTE (hours) | A2*2,080 | 624 | 728 | 728 | 728 | 728 |
| A4 | Productivity realization factor | Composite | 75% | 75% | 75% | 75% | 75% |
| A5 | Fully burdened hourly compensation for a field crew FTE | Composite | $62 | $62 | $62 | $62 | $62 |
| At | Time savings for field crews | A1*A3*A4*A5 | $5,803,200 | $6,770,400 | $6,770,400 | $6,770,400 | $6,770,400 |
| Risk adjustment | ↓15% | ||||||
| Atr | Time savings for field crews (risk-adjusted) | $4,932,720 | $5,754,840 | $5,754,840 | $5,754,840 | $5,754,840 | |
| Five-year total: $27,952,080 Five-year present value: $21,067,990 | |||||||
Evidence and data. Interviewees said ADMS with embedded DERMS reduced the time their organizations’ control room operators spend on the following tasks:
Assigning tickets, communicating switching plans, and other ways of interacting with field crews. Field Client gave operators the ability to remotely dispatch incidents to field crews (and thus decrease radio traffic) and provide switching plans within the client. Interviewees said it also allows field crews to be more self-sufficient in determining the as-operated state of a grid and identifying what circuits they are working on instead of having to ask the operators.
Creating and checking switching plans. Using drag-and-drop capabilities or recording simulated plan actions within an application and having ADMS with embedded DERMS check the resulting plan actions for any potential issues (e.g., equipment overloads, switching plan conflicts or overlaps) allowed operators to create switching plans more quickly than before. They were then able to archive switching plans and readily capture any subsequent changes. Interviewees said none of this was possible when operators previously created switching plans in spreadsheets without any advanced capabilities.
The power system supervising engineer said: “Instead of spending 2 hours to write a step-by-step switching plan in a spreadsheet and check it, our operators now spend about 30 minutes. They save time because they’re just dragging and dropping to write their steps into a plan. Or they can click through a simulation environment as if they are performing the actions, and the software will record what they’re doing. The other big benefit is that now the software programmatically is checking those actions and seeing if the switching plan is going to cause an issue, like the customer is going to be dropped or we’re going to overload a piece of equipment. Before ADMS with embedded DERMS, each operator had to do that analysis on their own by reviewing their steps.”
The ADMS operations engineer explained: “For unplanned outages, there can be a reduction in complexity of the switching that the control room needs to undertake due to the reduction in fault-finding enabled by FLISR. Because operators now have more information about where the fault is and where they’re going to be switching, they spend less time writing switching programs for those unplanned outages.”
Providing information (e.g., about outages or customer escalations) to key accounts/executives/public information offices. ADMS with embedded DERMS enabled designated employees to access the same information operators saw, instead of asking operators to provide it. The power system supervising engineer noted, “Since our executives and the key accounts and public information office staff have real-time access to the same information our operators do, they no longer need to interrupt those folks.”
Assessing potential network problems. For switching plans and other network operations decisions, operators gained the ability to programmatically assess risks and impact using ADMS with embedded DERMS instead of relying on more time-consuming and less consistent manual review or simply guesswork.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite has 30 control room operators.
The composite attributes time savings of 50% for control room operators in Year 1 to ADMS with embedded DERMS. As operators and the organization overall get more familiar with the software, the composite attributes time savings of 65% in Years 2 through 5 to the solution.
The composite’s control room operators reinvest 65% of the time they save toward tasks that provide the organization with greater value.
The fully burdened hourly compensation for a control room operator is $69.
Risks. These results may not be representative of all experiences because time savings for control room operators can vary based on:
The extent to which the organization leverages the functionality of ADMS with embedded DERMS.
The organization’s prior operating processes and software for control room operators.
The number of the organization’s control room operators, which depends on multiple factors (e.g., the number of metered customers, the scope and nature of the service area, and the organization’s priorities for its operators).
Prevailing local compensation rates.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a five-year, risk-adjusted total present value (discounted at 10%) of $5.5 million.
Time savings for control room operators
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|---|---|
| B1 | Control room operator FTEs | Interviews | 30 | 30 | 30 | 30 | 30 |
| B2 | Percent of time saved | Interviews | 50% | 65% | 65% | 65% | 65% |
| B3 | Subtotal: Time saved per control room operator FTE (hours) | B2*2,080 | 1,040 | 1,352 | 1,352 | 1,352 | 1,352 |
| B4 | Productivity realization factor | Composite | 65% | 65% | 65% | 65% | 65% |
| B5 | Fully burdened hourly compensation for a control room operator FTE | Composite | $69 | $69 | $69 | $69 | $69 |
| Bt | Time savings for control room operators | B1*B3*B4*B5 | $1,399,320 | $1,819,116 | $1,819,116 | $1,819,116 | $1,819,116 |
| Risk adjustment | ↓15% | ||||||
| Btr | Time savings for control room operators (risk-adjusted) | $1,189,422 | $1,546,249 | $1,546,249 | $1,546,249 | $1,546,249 | |
| Five-year total: $7,374,416 Five-year present value: $5,537,111 | |||||||
Evidence and data. A DER is a supply-side or demand-side resource connected to a distribution network, including distributed generators (e.g., rooftop photovoltaic panels), distributed storage (e.g., batteries), and electric vehicles that consume load but can also function as storage units. Interviewees said ADMS with embedded DERMS helps their utilities control and optimize the use of DERs integrated into their networks by providing visibility and tools that improve network planning and operational management specific to DERs. This includes detecting and automatically controlling potential problems around load and generation and ensuring grid stability even with these multiple sources of variability added to their networks. ADMS with embedded DERMS also enabled their utilities to connect customers’ DERs sooner and decrease capital expenditures by capitalizing on DERs for various grid services, such as leveraging flexible connections in network areas under constraint instead of building out the network to accommodate every potential — but infrequent — overload scenario.
Before approving a request for a DER to be connected to its distribution network, an organization must assess the feasibility and impact of doing so, and interviewees said ADMS with embedded DERMS reduces the time lead energy analysts spend analyzing what would happen if a new DER is connected to the network and then integrating it into the network.
Among the interviewees’ organizations, there is considerable variation in the current number of DERs relative to the number of metered customers and new DERs integrated each year relative to the existing DERs and total customers. Interviewees explained that the number of new DERs added each year fluctuates and that they expect that to continue based on changes to rate structures and periodic additions, revisions, or deletions of incentive programs. In addition, they noted variations in the nature or size of the DERs for which their utilities were getting requests to integrate. One interviewee cited a growing number of batteries being connected while another said that although the number of DERs added each year may decrease, the rate of capacity growth may remain steady due to larger installations.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite uses ADMS with embedded DERMS to analyze and integrate an additional 3,500 to 3,800 new DERs in each of Years 2 through 5, resulting in a total of 14,600 DERs added during those four years.
The composite attributes a 17-hour reduction in the average time a lead energy analyst requires to analyze feasibility and to integrate a new DER to the grid in Years 2 through 5.
Because the composite implements DERMS in Year 1 after ADMS is fully in production mode, there is no time reduction in that year.
The fully burdened hourly compensation for a lead energy analyst is $80.
Risks. These results may not be representative of all experiences because time savings for integration of new DERs can vary based on:
The extent to which the organization leverages the functionality of ADMS with embedded DERMS.
The organization’s prior operating processes and software for assessing the impact of connecting a new DER.
The number of requests to connect a DER, which is a function of the number of metered customers, prevailing customer sentiment about DERs, and financial incentives for those customers to invest in DERs.
Prevailing local compensation rates.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a five-year, risk-adjusted total present value (discounted at 10%) of $12.1 million.
Reduction in time needed to analyze and integrate a DER
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|---|---|
| C1 | Additional DERs analyzed and integrated to the grid using ADMS with DERMS | Interviews | 3,500 | 3,600 | 3,700 | 3,800 | |
| C2 | Average time needed to analyze feasibility and integrate an additional DER to the grid before ADMS with DERMS (hours) | Interviews | 18 | 18 | 18 | 18 | |
| C3 | Average time needed to analyze feasibility and integrate an additional DER to the grid using ADMS with DERMS (hours) | Interviews | 1 | 1 | 1 | 1 | |
| C4 | Subtotal: Reduction in time spent to analyze and integrate a DER using ADMS with DERMS (hours) | C2-C3 | 17 | 17 | 17 | 17 | |
| C5 | Fully burdened hourly compensation for a lead energy analyst FTE | Composite | $80 | $80 | $80 | $80 | |
| Ct | Time savings for integration of additional DERs | C1*C4*C5 | $0 | $4,760,000 | $4,896,000 | $5,032,000 | $5,168,000 |
| Risk adjustment | ↓15% | ||||||
| Ctr | Time savings for integration of additional DERs (risk-adjusted) | $0 | $4,046,000 | $4,161,600 | $4,277,200 | $4,392,800 | |
| Five-year total: $16,877,600 Five-year present value: $12,119,442 | |||||||
Evidence and data. Interviewees noted several ways ADMS with embedded DERMS reduced their organizations’ capital expenditures for grid reinforcement or expansion, including:
Providing flexible generation and flexible service interconnections instead of network upgrades to accommodate DERs. Interviewees said ADMS with embedded DERMS enabled their organizations to offer customers flexible generation and flexible service interconnections (to the network) for their DERs instead of incurring capital expenditures before each new connection. Under a flexible generation or flexible service interconnection agreement, a DER owner agrees to comply with occasional temporary restrictions on how much of any excess energy generated by their DER they can export to the network or how much energy they can be serviced with when doing so would adversely affect network operations. That agreement enables the organization to connect that DER to its network without incurring capital expenditures to upgrade lines and other infrastructure to permanently expand capacity before connecting it.
Interviewees explained that prior to deploying ADMS with embedded DERMS, if a customer asked to connect a DER, their organizations either declined until they could upgrade (which could take several years) or they would accept the DER with an ongoing and artificially low limit on how much excess generated energy the customer could export to the network or how much energy the customer could be serviced with. These restrictions were necessary because the organizations lacked visibility to real-time system load and had no efficient automated way to temporarily limit export from or service to large numbers of DERs as needed.
They said using ADMS with embedded DERMS provided flexible generation and flexible service interconnections capacity through adaptive load limits on constrained circuits, which allowed their organizations to quickly connect most customers’ DERs while avoiding the capital expenditures for infrastructure upgrades. The grid edge innovation director said: “It provides an alternative. We can say, ‘You can connect now, but we need you to allow us to curtail you from time to time.’”
Increasing utilization of existing assets (i.e., using them more). Interviewees said that having more comprehensive visibility to the state of their organizations’ networks (including power flows to and from DERs on the low-voltage grid) enabled them to leverage DERs and increase utilization of their existing grid assets, which reduced the need for capital expenditures to expand grid capacity. The head of operations technology and data said: “With ADMS with embedded DERMS, we can get more utilization in our network. If I’ve got 10 megawatts of capacity of network available for use, I want to be using as much of that as I can for as long as I can to make sure I’m maximizing the benefit of having that capacity available. We have a lot of network capacity that’s not used a lot. DERMS gives us the ability to fill some of the troughs with load that we control with management, so we can get more benefit from the investment in that capacity — from what our customers have invested, ultimately.”
Extending the life of existing assets (i.e., using them longer). Using ADMS with embedded DERMS helped the organizations understand how DERs impacted their grids’ load and voltage while enabling their operators to incorporate those insights into their decision-making about existing grid assets. The power system supervising engineer said, “We now have visibility to what’s out there versus having a bunch of DERs installed but not being able to assess the ramifications of that.”
Interviewees explained that having more comprehensive network visibility and improving management of DERs could help their organizations avoid equipment overload, which can lead to equipment failure over time. The grid edge innovation director said: “Using flexibility — such as using DERs to manage capacity — to avoid continued equipment overload may help prevent equipment failure. That could prolong the life of an asset and reduce the need to spend on more assets.”
Reducing energy consumption and line losses. Interviewees also said the VVO functionality of ADMS with embedded DERMS reduced energy consumption for their organizations’ customers, therefore reducing the amount of power distributed through the networks and the capital expenditures required to reinforce or improve the grids. The senior director of grid transformation said: “Because we use VVO, less power needs to be generated or purchased and then distributed. With less flowing through the grid, the capital expenditures to reinforce or improve the grid also decrease.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Prior to using ADMS with embedded DERMS, the composite’s average annual capital expenditures were $600 million.
The composite attributes a 0.6375% reduction in capital expenditures in Year 1 to ADMS with embedded DERMS. This reduction grows to 0.850% in Year 2 and then to 1.2750% in each of Years 3 through 5.
Risks. These results may not be representative of all experiences because reduction in capital expenditures can vary based on:
Annual capital expenditures before deploying ADMS with embedded DERMS.
The extent to which the organization leverages the functionality of ADMS with embedded DERMS.
The organization’s prior operating processes and software.
Percentage of metered customers using DERs.
What portion of capital expenditures for grid upgrades required to accommodate new DERs are paid by the organization versus by customers.
The condition of the organization’s existing infrastructure.
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a five-year, risk-adjusted total present value (discounted at 10%) of $18.7 million.
Reduction in capital expenditures
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|---|---|
| D1 | Average capital expenditures prior to ADMS with DERMS | Interviews | $600,000,000 | $600,000,000 | $600,000,000 | $600,000,000 | $600,000,000 |
| D2 | Percentage reduction in average capital expenditures attributable to ADMS with DERMS | Interviews | 0.6375% | 0.8500% | 1.2750% | 1.2750% | 1.2750% |
| Dt | Reduction in capital expenditures | D1*D2 | $3,825,000 | $5,100,000 | $7,650,000 | $7,650,000 | $7,650,000 |
| Risk adjustment | ↓20% | ||||||
| Dtr | Reduction in capital expenditures (risk-adjusted) | $3,060,000 | $4,080,000 | $6,120,000 | $6,120,000 | $6,120,000 | |
| Five-year total: $25,500,000 Five-year present value: $18,731,846 | |||||||
Evidence and data. Electric distribution utilities are subject to outage penalties when their reliability indices fail to meet thresholds established by their regulatory authorities. Interviewees said that because a wide range of factors less amenable to software intervention contribute to the frequency of outages, ADMS with embedded DERMS helped their organizations reduce outage penalties primarily by shortening the duration of outages, which improved their System Average Interruption Duration Index (SAIDI). As the head of operations technology and data explained, “Every minute we can save on an outage is money.”
Interviewees said ADMS with embedded DERMS helped shorten the duration of outages for their organizations by reducing the elapsed time needed to address an outage in the following ways:
Faster identification of faulted sections. Operators have more information about the potential location and type of fault, so they can help field crews understand what to look for and pinpoint the faulted sections faster.
Faster notification of field crews about where they need to address outages. By having the ability to communicate with field crews via software instead of radio calls, operators can more rapidly dispatch field crews to resolve outages. The ADMS operations engineer said: “ADMS really shines on busy days when operators would be stuck on the phone and not be able to talk to the next crew, in terms of how much we can actually do and get restored and how quickly that can happen. This really streamlines it.”
Faster creation and provision of switching plans to field crew. Control room operators can create and communicate switching plans more quickly than before, so less time elapses before field crew can execute on those plans and resolve an outage.
Automatic resolution of certain outages. Interviewees said their organizations can operate FLISR functionality within ADMS with embedded DERMS in manual, semi-automatic, or automatic modes, and vary in that mode within the utility service area, depending on local network characteristics. The ADMS operations engineer explained: “Our automated FLISR can act in timeframes we wouldn’t be able to achieve using manual means. It finds the fault, isolates the fault, and restores supply to those customers that it can. The network operating center would not be able to safely restore a section in the same amount of time, especially if operators are under pressure and a big weather event is coming through.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Before deploying ADMS with embedded DERMS, the composite paid an average of $2 million in outage penalties each year.
The composite attributes a 15% reduction to those penalties in Year 1 to ADMS with embedded DERMS. This reduction increases to 20% in Years 2 through 5.
Risks. These results may not be representative of all experiences because reduction in outage penalties can vary based on:
The extent to which the organization leverages the functionality of ADMS with embedded DERMS, especially the FLISR functionality.
How extensively the organization uses FLISR on a utility network.
Whether the organization uses FLISR in manual, semi-automatic, or automatic mode.
The organization’s prior operating processes and software (if applicable) for outage management.
Prevailing local regulations regarding outage penalties (e.g., thresholds for and amounts of penalties, whether those thresholds persist unchanged or are periodically adjusted for all or individual customers based on recent experience, the extent to which severe weather or wildfires are incorporated into the calculation of reliability indices).
The organization’s reliability indices and outage penalties prior to deploying ADMS with embedded DERMS.
The nature of the organization’s distribution network (e.g., highly concentrated in an urban area versus more dispersed over a rural area) and the resulting time and effort previously needed to pinpoint the source of an outage.
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a five-year, risk-adjusted total present value (discounted at 10%) of $1.1 million.
Reduction in outage penalties
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|---|---|
| E1 | Average outage penalties before ADMS with DERMS | Interviews | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 |
| E2 | Percentage reduction in penalties attributable to ADMS with DERMS | Interviews | 15% | 20% | 20% | 20% | 20% |
| Et | Reduction in outage penalties | E1*E2 | $300,000 | $400,000 | $400,000 | $400,000 | $400,000 |
| Risk adjustment | ↓20% | ||||||
| Etr | Reduction in outage penalties (risk-adjusted) | $240,000 | $320,000 | $320,000 | $320,000 | $320,000 | |
| Five-year total: $1,520,000 Five-year present value: $1,140,324 | |||||||
Evidence and data. Each interviewee’s organization is a brownfield utility that had already been using software for certain aspects of its operational management, and the interviewees reported that replacing their organization’s prior operational management solutions with ADMS with embedded DERMS saved them the cost of software and infrastructure for legacy solutions and time needed to manage those solutions. These are net savings since their organizations now incur ongoing costs associated with ADMS with embedded DERMS.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
After deploying ADMS with embedded DERMS, the composite retires legacy solutions with annual costs of $500,000 for software and infrastructure.
Four FTEs previously spent 100% of their time managing and maintaining the composite’s legacy solutions.
The blended fully burdened annual compensation for an FTE in this role is $140,000.
Because the composite implements DERMS in Year 1 after ADMS is fully in production, it saves $400,000 for software and the expense of three FTEs in Year 1. When the legacy solution is fully phased out in Year 2, the savings increase to $500,000.
Risks. These results may not be representative of all experiences because cost savings from retiring a legacy solution can vary based on:
The number and nature of the organization’s legacy operational management software programs.
The number of users of the legacy solution.
Prevailing local compensation rates.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total present value (discounted at 10%) of $3.2 million.
Cost savings from retiring legacy solution
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|---|---|
| F1 | Software and infrastructure fees | Interviews | $400,000 | $500,000 | $500,000 | $500,000 | $500,000 |
| F2 | FTEs needed to manage, maintain, and optimize software | Interviews | 3 | 4 | 4 | 4 | 4 |
| F3 | Blended fully burdened annual compensation for an FTE who manages, maintains, and optimizes software | Composite | $140,000 | $140,000 | $140,000 | $140,000 | $140,000 |
| Ft | Cost savings from retiring legacy solution | F1+(F2*F3) | $820,000 | $1,060,000 | $1,060,000 | $1,060,000 | $1,060,000 |
| Risk adjustment | ↓15% | ||||||
| Ftr | Cost savings from retiring legacy solution (risk-adjusted) | $697,000 | $901,000 | $901,000 | $901,000 | $901,000 | |
| Five-year total: $4,301,000 Five-year present value: $3,230,044 | |||||||
Interviewees mentioned additional benefits of ADMS with embedded DERMS that their organizations experienced which are either not quantified for the composite or not included in the ROI, including:
Reduced energy consumption. Interviewees indicated that the VVO functionality in ADMS with embedded DERMS enabled their organizations to reduce customers’ energy consumption by taking certain actions that slightly but imperceptibly reduced voltage in their distribution networks to the lower end of the acceptable voltage range. This decrease in energy consumption reduced the cost of generating or procuring energy, but it also reduced revenue.
Interviewees noted this reduction in energy consumption nonetheless had substantial value for their organizations because of its positive impact on customer satisfaction and regulator perception of their organizations’ efforts to moderate expenses for ratepayers. For instance, one explained that being able to estimate impact may help distribution network service providers gain regulatory approval to implement VVO.
Modeling and assumptions. Based on the interviews, Forrester modeled this benefit for the composite organization and assumes the following:
The composite pays an average of $45 to generate or procure each MWh.
Before deploying ADMS with embedded DERMS, the composite delivers an average of 18 million MWh to customers each year.
ADMS with embedded DERMS decreases the number of MWh by 0.35%.
Risks. These results may not be representative of all experiences because reduction in fuel consumption can vary based on:
The extent to which the organization leverages ADMS with embedded DERMS functionality.
The organization’s prior operating processes and software for VVO and line loss minimization (if applicable).
The volume of customers’ energy use (i.e., the amount delivered/used).
The prevailing conservation reduction (CVR) factor, which indicates the percentage change in energy consumption that results from a given percentage change in voltage and depends on the mix of customers and end-use devices.
Prevailing fuel costs.
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a five-year, risk-adjusted total present value (discounted at 10%) of $8.6 million.
A more satisfying experience for end customers. Interviewees said ADMS with embedded DERMS enhanced the customer experience in the following ways:
The head of operations technology and data said, “Everything we do within ADMS to improve the accuracy of the network operating model directly affects our customers because if we know who’s connected where, we can accurately message them about outages and planned work.”
The ADMS operations engineer said: “If customers decide to go onto a flexible plan, then there’s no real network upgrades we need to do physically, like upgrading lines before they can connect. It’s literally just a few entries in a database here and there, and they’re away with the flexibles. So, they can connect a lot sooner than they might have been able to under other schemes.”
The head of network strategy indicated, “Without the flexibility that ADMS with embedded DERMS provides, we would need to impose more restrictions on the amount our customers can export from their DERs into the grid.”
Improved safety for crews. Interviewees said ADMS with embedded DERMS improved field crew safety by providing operators with additional data and programmatic analysis about potential safety issues (e.g., during switching), providing field crews with location awareness and insight on the as-operated state of a grid, and enabling faster and more accurate and comprehensive communications between operators and field crews. The power system supervising engineer said, “Our crews now have a real-time mapping system at their hands, so they can operate more safely and see crews that are working around them.” The head of operations technology and data noted: “Some of the biggest benefits are around safety and the use of digital field switching. Getting off paper plans and onto digital has had an outstanding impact on reducing switching incidents.”
Enhanced ability to meet regulatory requirements and preferences. Interviewees said ADMS with embedded DERMS helped ensure compliance with evolving standards and mandates. The ADMS operations engineer said: “Our regulator has started to add requirements, like around the emergency control of DERs. We might be at risk of losing our distribution license if we couldn’t meet some of those requirements. That was another driver for our implementing ADMS with embedded DERMS.” Interviewees also mentioned that regulators look favorably on their organizations’ voluntary efforts to slightly decrease their customers’ electricity bills by using VVO.
Incremental revenue enabled by flexible service connections. The grid edge innovation director said ADMS with embedded DERMS enabled their organization to expand its load-serving hosting capacity by using flexible service connections. They described leveraging flexible service connection capabilities of ADMS with embedded DERMS to serve incremental load (and capture incremental revenue) without needing to first upgrade their grid at constraint points. Prior to the organization’s deployment of ADMS with embedded DERMS, when a customer requested a certain volume of new load, the organization would do a conventional grid planning study and typically determine that, until it could do a grid upgrade in several years, it could only commit to serving a portion of the requested load because it lacked visibility to system load and thus needed to impose artificially low limits on the load served.
By using ADMS with embedded DERMS to provide flexible capacity through adaptive load limits on constrained circuits, the organization has been able to service all the requested loads at most times for several recent requests from commercial customers that need to charge electric vehicles from their company’s fleet or provide charging stations for their own customers. This approach accommodated load growth by increasing utilization of the organization’s existing assets, improved customers’ experience by providing most of their requested capacity faster than would have been possible with the organization’s former process, and resulted in incremental revenue each year by serving nearly 100% (instead of only a fraction) of the new load requested by those customers.
At some point, future grid upgrades may replace this bridging solution for those customers, or the bridging solution may enable more permanent deferral of those grid upgrade expenses. The interviewee anticipates ongoing use of ADMS with embedded DERMS to more completely serve other customers’ load requests and capture additional revenue that otherwise would remain elusive.
Increased visibility to all aspects of the network (including DERs). Interviewees uniformly noted that ADMS with embedded DERMS improved their organizations’ operational visibility by providing a single comprehensive model and data source. This underlies many of the quantified and unquantified benefits detailed in this study.
The head of operations technology and data explained: “We have so much more visibility now, and it’s not limited to just the control room; it’s available across the organization. There’s a lot of benefit from having our planning teams and some of our other operational teams able to see the current state of the network and get information without having to go to a specific team. They’ve got access themselves now. … We now have a near-real-time operational model all the way from our transmission exit points to our customer service points. It’s effectively a digital twin of our network’s connectivity. Suddenly, there’s almost nothing we can’t do with that level of insight and forecasting ability or the ability to estimate the flows accurately across our network.”
Enhanced decision-making. Interviewees said ADMS with embedded DERMS enabled their organizations to replace multiple individual software packages with an integrated platform, add analytics tools, and consolidate and combine previously fragmented data sources into one source of actionable information. As a result, control room operators and other staff can make better decisions. The power system supervising engineer said: “Our distribution planning department uses state estimation to run comparative studies in ADMS and to determine loading and capacitor bank states during peak loading conditions, so they can have a reality check versus their other modeling tool and see how their results compare.”
The head of operations technology and data said: “Our operators can make better-informed decisions because there’s more input and more things to look at, which means more work, but I think it ultimately results in superior decisions. And everyone’s using a common set of data as much as we can, which no doubt helps with people’s understanding and saves some time. We used to have conflicting information. We don’t have that anymore. We have a common platform and don’t spend time trying to glue pieces together quite imperfectly.”
Less reliance on operators’ institutional knowledge. Interviewees said advanced tools within ADMS with embedded DERMS reduced their organizations’ reliance on operators’ level of experience and memories. The power system supervising engineer said: “ADMS’ advanced tools help bridge the gap and avoid knowledge loss as operators retire and we bring in new operators. Those new operators can see real-time load flow on the screen and get real-time validations if they are going to overload something, so we’re less reliant on institutional knowledge from experienced operators who would know you can’t do that kind of switching because it might overload a piece of equipment or drop a customer.”
Staff time freed up to address other needs. Interviewees explained that using ADMS with embedded DERMS reduced the time employees previously spent on a variety of tasks and enabled them to reallocate that saved time to other priorities. The head of operations technology and data said: “We have been able to manage and monitor the increasing complexity and changing use of the network without a large increase in control room operators. They couldn’t efficiently manage the large volumes of DERs, for example, without automation and tools.”
Increased employee satisfaction. Interviewees said that because ADMS with embedded DERMS improved access to operational and planning information and generated more extensive data than legacy solutions had, employees feel equipped to excel in their roles and come up with new ideas for the organization. The power system supervising engineer noted, “Across the organization, there are just new opportunities to up your game and do things better. Because there’s so much more visibility and reporting now, people can do their job more effectively.”
Control room operators experienced less operational pressure because ADMS with embedded DERMS provided them with more data and thinking time with which to make decisions. It also simplified communication with field crews.
The head of operations technology and data said: “Our operators have more time to think about what they’re doing rather than being constantly under operational pressure. The software probably gives them a little bit more time for each task they undertake, and they’ve got that thinking time to make sure what they’re doing is correct.” The power system supervising engineer observed: “Our operators have gone from having to make so many calls to communicate with every single person who needs information about assignments and switching plans to being able to send that information via the software. I think that made the operators’ lives easier and less stressful because they’re not having to feel they’re being timed and that the longer they take, the longer an outage lasts.”
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement ADMS with embedded DERMS and later realize additional uses and opportunities, including:
Leveraging ADMS with embedded DERMS capabilities more completely. Interviewees noted their organizations will continue to explore additional ways to capitalize on ADMS with embedded DERMS functionality and gain even greater value from it. The head of operations technology and data said, “For example, we can start rolling out replacement equipment knowing we’ve got the back-end systems to take advantage of that and use the information, and then ultimately move to more field automation when we get enough of those switches out there.” The ADMS operations engineer and power system supervising engineer said their respective organizations anticipate adding the electric power safety settings (EPSS) of ADMS with embedded DERMS for wildfire mitigation so they can remotely put certain network devices in or out of wildfire mode as risk conditions change instead of having field crews spend time driving to those devices and manually adjusting them.
Capitalizing on additional capabilities of ADMS with embedded DERMS as Schneider Electric introduces them. Interviewees said they anticipate gaining additional value by using new and enhanced features as ADMS with embedded DERMS continues to evolve. The ADMS operations engineer noted: “Schneider Electric’s product roadmap has things like the integration of AI into ADMS, which they’re planning on doing in future versions. I’m obviously unsure at this stage how much benefit we’ll get from it, but I have no doubt we’ll see some benefit. It’s something we don’t have now that hopefully we’ll have in future versions.”
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total | Present Value |
|---|---|---|---|---|---|---|---|---|---|
| Gtr | Schneider Electric fees | $3,719,928 | $1,204,831 | $1,085,641 | $1,129,067 | $1,174,230 | $1,221,199 | $9,534,897 | $8,121,022 |
| Htr | Implementation | $7,382,496 | $1,193,500 | $0 | $0 | $0 | $0 | $8,575,996 | $8,467,496 |
| Itr | Management | $0 | $1,239,876 | $1,410,376 | $1,410,376 | $1,410,376 | $1,410,376 | $6,881,380 | $5,191,435 |
| Total costs (risk-adjusted) | $11,102,424 | $3,638,207 | $2,496,017 | $2,539,443 | $2,584,606 | $2,631,575 | $24,992,273 | $21,779,953 |
Evidence and data. Interviewees indicated their organizations purchased ADMS with embedded DERMS software along with necessary hardware, third-party software, and Schneider Electric professional services. Their organizations typically deployed ADMS with embedded DERMS in two phases. They initially focused on improving operational efficiency and system reliability and resilience and subsequently added DERMS to their existing ADMS platform.
Pricing for ADMS with embedded DERMS software is on a subscription basis and depends on an organization’s number of metered customers. Contact Schneider Electric for likely costs specific to your organization.
Modeling and assumptions. Schneider Electric provided the pricing for the composite organization. Based on the interviews, Forrester assumes the following about the composite organization:
The composite uses two phases to deploy ADMS with embedded DERMS on-premises.
During the initial implementation period, it focuses on improving operational efficiency and system reliability and resilience by implementing key capabilities of ADMS with embedded DERMS.
During the second phase (which happens in Year 1 of using ADMS with embedded DERMS), the composite adds DERMS to its existing ADMS platform.
The composite pays $250,754 for ADMS with embedded DERMS software licenses and maintenance during the initial implementation period. It then pays $719,883 in Year 1 (when DERMS is implemented), $1,033,944 in Year 2, $1,075,302 in Year 3, $1,118,314 in Year 4, and $1,163,047 in Year 5.
The composite pays $3,292,035 during the initial implementation period for project services, hardware, and hardware support and maintenance, and an additional $427,575 during Year 1 specific to its DERMS implementation.
Pricing for the composite’s hardware includes main and redundant backup (core) sites to ensure 24x7x365 ADMS availability and a quality assurance site. The composite also pays hardware fees for maintenance and support.
Six kinds of third party software licenses (e.g., antivirus and antimalware, backup and restore, network management), and the costs for support and maintenance from those third parties for their software, are also included in the hardware expense item. Those third party licenses are needed to implement and maintain ADMS with embedded DERMS.
During the initial implementation phase, Schneider Electric professional services cover the design, installation, integration, and testing of the composite’s ADMS platform. Schneider Electric also delivers professional services during the second phase of implementation when the focus is on deployment of DERMS capabilities. As part of both phases, Schneider Electric professional services include training utility staff (either directly or through a train-the-trainer approach) to ensure effective adoption and operational readiness.
To operate VVO, FLISR, and other functionality of ADMS with embedded DERMS that’s dependent on remote sensing, the composite uses its existing SCADA devices and other equipment.
Risks. These costs may not be representative of all experiences because Schneider Electric fees can vary based on:
The organization’s number of substations and metered customers.
The modules and add-ons of ADMS with embedded DERMS the organization buys.
The extent to which the organization customizes ADMS with embedded DERMS.
The extent to which the organization leverages the functionality in those modules and add-ons.
The organization’s prior operating processes and software for operational management (if applicable).
Whether the organization implements any aspects of ADMS with embedded DERMS in cloud or hybrid mode versus on-prem.
Whether the organization chooses to purchase hardware directly from Schneider Electric.
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a five-year, risk-adjusted total present value (discounted at 10%) of $8.1 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|---|---|---|
| G1 | Cost of software licenses and support and maintenance for ADMS with DERMS | Schneider Electric | $250,754 | $719,883 | $1,033,944 | $1,075,302 | $1,118,314 | $1,163,047 | |
| G2 | Cost of project services, hardware, and hardware support and maintenance for ADMS with DERMS | Schneider Electric | $3,292,035 | $427,575 | |||||
| Gt | Schneider Electric fees | G1+G2 | $3,542,789 | $1,147,458 | $1,033,944 | $1,075,302 | $1,118,314 | $1,163,047 | |
| Risk adjustment | ↑5% | ||||||||
| Gtr | Schneider Electric fees (risk-adjusted) | $3,719,928 | $1,204,831 | $1,085,641 | $1,129,067 | $1,174,230 | $1,221,199 | ||
| Five-year total: $9,534,897 | Five-year present value: $8,121,022 | ||||||||
Evidence and data. Interviewees described how IT and operational staff at their organizations collaborated among themselves and with Schneider Electric professional services to plan for and deploy ADMS with embedded DERMS.
Interviewees indicated that implementation included identifying a project team composed of IT and operational staff who worked with Schneider Electric’s professional services team to design, install, integrate with their organizations’ core systems, configure, and test ADMS with embedded DERMS.
The specific roles involved in implementation varied among the interviewees’ organizations, but they typically included a SCADA subject matter expert (SME), a distribution management SME, a modeling SME, geographic information system (GIS) team members who worked with the modeling SME on the data conversion, control room operators, a business-side project manager (PM), an IT-side PM, and people from operational technology groups to address hardware considerations.
The organizations’ DERMS implementations typically included a subset of the ADMS implementation team (e.g., a SCADA SME, a distribution management SME, an IT PM, and members of operational technology groups).
Individuals in these roles spent varying percentages of their time on implementation, and that time commitment could remain consistent or vary considerably throughout the course of the implementation.
Schneider Electric delivered training for ADMS in onsite group training sessions and also via a train-the-trainer approach in which the utility appointed a dedicated trainer for roles that had many employees who needed training (e.g., field crew members). The trainer attended Schneider Electric training and later acted as an internal trainer within the organization. Staff who work with DERMS got familiar with that product via self-discovery and support from Schneider Electric as needed.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite’s implementation of the key capabilities of ADMS with embedded DERMS takes 30 months during the initial implementation phase.
The composite’s DERMS implementation takes 10 months in Year 1 after ADMS is fully in production.
Individuals on the implementation teams dedicate varying percentages of their time to the project over the implementation period. To streamline calculations of the total time a team collectively spends on an implementation, Forrester translated the total number of hours worked by that team into FTE-years. (Note: An FTE-year represents one worker dedicating 100% of each workday for a total of 2,080 hours per calendar year.)
The ADMS implementation team uses a collective total of 40 FTE-years to deploy ADMS over 30 months.
The DERMS implementation team uses a collective total of seven FTE-years to deploy DERMS over 10 months.
The blended fully burdened annual compensation across the ADMS and DERMS implementation teams (weighted by role) is $155,000.
Training time for each new ADMS user varies depending on their role. Thirty control room operators each spend 4 weeks on training. Two hundred field crew members each spend 4 hours on training. Sixty other employees in various roles each spend four days on training.
A workday is 8 hours.
The blended fully burdened hourly compensation across the ADMS users who are trained (weighted by role) is $68.
Risks. These costs may not be representative of all experiences because implementation costs can vary based on:
The extent to which the organization leverages the functionality of ADMS with embedded DERMS.
The organization’s prior operating processes and software for operational management (if applicable).
The modules and add-ons of ADMS with embedded DERMS the organization deploys.
Whether the organization implements any aspects of ADMS with embedded DERMS in cloud or hybrid mode versus on-prem.
The experience levels and capabilities of the organization’s IT and operational staff.
Prevailing local compensation rates.
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a five-year, risk-adjusted total present value (discounted at 10%) of $8.5 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|---|---|---|
| H1 | FTE-years required for initial deployment | Interviews | 40 | 7 | |||||
| H2 | Blended fully burdened compensation of an FTE (weighted by role) | Composite | $155,000 | $155,000 | |||||
| H3 | Control room operator FTEs trained | B1 | 30 | ||||||
| H4 | Time each operator spends in training (hours) | Interviews | 160 | ||||||
| H5 | Field crew FTEs with significant use of Field Client trained | A1 | 200 | ||||||
| H6 | Time each field crew member spends in training (hours) | Interviews | 4 | ||||||
| H7 | Other employees trained | Composite | 60 | ||||||
| H8 | Time each other employee spends in training (hours) | Interviews | 32 | ||||||
| H9 | Blended fully burdened hourly compensation for a user trained (weighted by role) | Composite | $68 | $68 | |||||
| Ht | Implementation | (H1*H2)+(((H3*H4)+(H5*H6)+(H7*H8))*H9)) | $6,711,360 | $1,085,000 | $0 | $0 | $0 | $0 | |
| Risk adjustment | ↑10% | ||||||||
| Htr | Implementation (risk-adjusted) | $7,382,496 | $1,193,500 | $0 | $0 | $0 | $0 | ||
| Five-year total: $8,575,996 | Five-year present value: $8,467,496 | ||||||||
Evidence and data. Interviewees indicated that systems administrators and some employees who had been part of their organization’s implementation team manage and maintain the software for ADMS with embedded DERMS, related hardware and third party software, and the underlying model on an ongoing basis. They also support end users and determine how to further leverage the existing functionality of ADMS with embedded DERMS and capitalize on new capabilities as they are introduced.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite utilizes seven FTEs to support ADMS in Year 1 and eight FTEs in Years 2 through 5 to support ADMS with embedded DERMS.
DERMS is implemented during Year 1.
The blended fully burdened annual compensation across the team that manages ADMS with embedded DERMS (weighted by role) is $155,000.
All roles initially trained receive subsequent training during Years 1 through 5 for product updates or to learn how the organization uses the product. Each year, control room operators spend 10 hours in training, field crew members spend 1 hour, and other employees spend 2 hours.
The blended fully burdened hourly compensation across the users who are trained (weighted by role) is $68.
Risks. These costs may not be representative of all experiences because management costs can vary based on:
The extent to which the organization leverages the functionality of ADMS with embedded DERMS.
The organization’s prior operating processes and software for operational management (if applicable).
The modules and add-ons of ADMS with embedded DERMS the organization deploys.
Whether the organization implements any aspects of ADMS with embedded DERMS in cloud or hybrid mode versus on-prem.
The level of experience and capabilities of the organization’s IT and operational staff.
Prevailing local compensation rates.
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a five-year, risk-adjusted total present value (discounted at 10%) of $5.2 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|---|---|---|
| I1 | FTEs required for ongoing management and support | Interviews | 7 | 8 | 8 | 8 | 8 | ||
| I2 | Blended fully burdened compensation for an FTE who provides ongoing management and support (weighted by role) | Composite | $155,000 | $155,000 | $155,000 | $155,000 | $155,000 | ||
| I3 | Control room operator FTEs trained | B1 | 30 | 30 | 30 | 30 | 30 | ||
| I4 | Time each operator spends in training (hours) | Interviews | 10 | 10 | 10 | 10 | 10 | ||
| I5 | Field crew FTEs with significant use of Field Client trained | A1 | 200 | 200 | 200 | 200 | 200 | ||
| I6 | Time each field crew member spends in training (hours) | Interviews | 1 | 1 | 1 | 1 | 1 | ||
| I7 | Other employees trained | Composite | 60 | 60 | 60 | 60 | 60 | ||
| I8 | Time each other employee spends in training | Interviews | 2 | 2 | 2 | 2 | 2 | ||
| I9 | Blended fully burdened hourly compensation for an FTE or employee who requires training (weighted by role) | Composite | $68 | $68 | $68 | $68 | $68 | ||
| It | Management | ((I1*I2)+(((I3*I4)+(I5*I6)+(I7*I8))*I9)) | $1,127,160 | $1,282,160 | $1,282,160 | $1,282,160 | $1,282,160 | ||
| Risk adjustment | ↑10% | ||||||||
| Itr | Management (risk-adjusted) | $0 | $1,239,876 | $1,410,376 | $1,410,376 | $1,410,376 | $1,410,376 | ||
| Five-year total: $6,881,380 | Five-year present value: $5,191,435 | ||||||||
| Initial | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total | Present Value | |
|---|---|---|---|---|---|---|---|---|
| Total costs | ($11,102,424) | ($3,638,207) | ($2,496,017) | ($2,539,443) | ($2,584,606) | ($2,631,575) | ($24,992,273) | ($21,779,953) |
| Total benefits | $0 | $10,119,142 | $16,648,089 | $18,803,689 | $18,919,289 | $19,034,889 | $83,525,096 | $61,826,757 |
| Net benefits | ($11,102,424) | $6,480,935 | $14,152,071 | $16,264,246 | $16,334,683 | $16,403,313 | $58,532,824 | $40,046,804 |
| ROI | 184% | |||||||
| Payback | 16.0 months |
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Schneider Electric EcoStruxure ADMS with embedded EcoStruxure DERMS.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that ADMS with embedded DERMS can have on an organization.
Interviewed Schneider Electric stakeholders and Forrester analysts to gather data relative to ADMS with embedded DERMS.
Interviewed nine decision-makers at a total of four organizations using ADMS with embedded DERMS to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Benefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization.
Costs comprise all expenses necessary to deliver the proposed value, or benefits, of the solution. The methodology captures implementation and ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a present value that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cash flows.
The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs.
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.
The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.
The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
Readers should be aware of the following:
This study is commissioned by Schneider Electric and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in ADMS with embedded DERMS. Forrester believes that this analysis is representative of what companies may achieve with ADMS with embedded DERMS based on the inputs provided and any assumptions made. Forrester does not endorse Schneider Electric or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, Schneider Electric and Forrester Research are unable to accept any legal responsibility for any actions taken on the basis of the information contained herein.
Schneider Electric reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
Schneider Electric provided the customer names for the interviews but did not participate in the interviews.
Mary Anne North
October 2025
https://mainstayadvisor.com/go/mainstay/gdpr/policy.html