A major trend to note in the distributed energy resource management systems (DERMS) market around the globe over the past year: mergers & acquisitions and strategic partnerships.
Virtual power plant (VPP) demand is dominating the space, supporting an uptick in market action. Here’s a rundown of the biggest recent M&A headlines in DERMS →
- Commercial energy developer Budderfly announced the acquisition of a grid-edge DERMS from Sunverge Energy to create VPPs for grid flexibility in August. Budderfly will procure battery storage, behind-the-meter solar, and EV charging for small- to mid-sized commercial buildings and onboard several utility customers in Arizona, Maryland, the Northeast, and the Pacific Northwest.
- mPrest has had three major announcements earlier this year—it was tapped as a DERMS service provider for Endeavor Energy’s community microgrid in Australia, for EDF Renewables’ solar-plus-storage portfolio in Israel, and for global service provider Doral Energy’s global solar-plus-storage offerings.
- IntelliHUB, a smart metering and data services provider, acquired energy company GreenSync in April to combine its DERMS capabilities with solar energy, especially for its VPP portfolio in South Australia.
- DERMS solutions provider Landis+Gyr acquired Entrel this summer to further its EV capabilities, helping car batteries integrate into smart grids.
By the numbers: In the US, the VPP market was valued at $2.1 billion in 2024, and the DER market is projected to grow by 217 GW through 2028—both driving DERMS market growth of over 15% every year to 2028.
Budderfly was in the M&A market for a behind-the-meter DERMS platform due to increased interest in VPPs, Chief Administrative Officer and General Counsel Tom Flynn told Energy Central.
“It’s all about load flexibility, VPP functionality, and managing utility expenses in terms of demand charge reduction for bills,” Flynn said. “Whether it’s for utility demand response programs or energy market programs, this acquisition platform enables us to network thousands of locations together.”
Looking ahead: Flynn expects this M&A momentum to continue as load flexibility takes center stage in increasing DER deployment.
