Home › Pathways › Scope 2 › 3.2 Energy Optimization
Scope 2  ·  3.2.3

Grid Edge Solutions

Deploying distributed energy resources (DERs) and advanced technologies at or near the customer meter to optimize energy flows, reduce consumption costs, improve resilience, and support grid decarbonization. Grid edge solutions include smart inverters, distributed generation controls, automated load switching, and DER management systems (DERMS).

← Back to Pathways

Self-Assessment

Select where your organization currently operates and where you want to get to. There is no obligation to reach "Leading Org." — choose the target that is right for your business context and investment capacity.

📍 Current Level
🎯 Target Level
Select your current and target levels above to map your assessment on this initiative.
Fundamental
Market Standard
Above Average
Leading Org.

Technology

  • Smart meters with real-time energy monitoring and interval data access
  • Basic smart plugs and load controllers for non-critical equipment
  • Automated demand response switches on HVAC and lighting circuits

Process

  • Enrolling in utility automated demand response (ADR) programs
  • Establishing real-time energy monitoring dashboard across key facilities
  • Identifying controllable loads for automated curtailment during grid events

Financing

  • Demand response program incentive payments provide positive economics from day one
  • Utility ADR program provides free or subsidized smart control equipment

Technology

  • Fundamental Technologies +
  • Advanced smart inverters with Volt/VAR optimization and grid support functions
  • Building energy management system (BEMS) integrated with utility signals
  • EV charging load management system coordinating fleet and employee charging

Process

  • Participating in utility demand response and grid services programs via BEMS automation
  • Implementing transactive energy controls responding to real-time electricity price signals
  • Aggregating controllable loads across facilities for portfolio-level demand flexibility

Financing

  • Demand response and grid services revenue netted against energy management system costs
  • Utility grid modernization incentive programs accessed for smart inverter and BEMS upgrades

Technology

  • Market Standard Technologies +
  • Customer-sited DERMS integrating solar, storage, EV charging, and building loads
  • Grid-forming inverters enabling islanded microgrid operation
  • Peer-to-peer energy trading capability within campus or industrial park

Process

  • Registering DER portfolio with utility DERMS for coordinated grid support dispatch
  • Optimizing DER dispatch for emissionality — responding to locational marginal emissions signals
  • Piloting transactive energy platforms for local energy market participation

Financing

  • VPP aggregator contract monetizing flexibility across demand response, capacity, and ancillary services
  • Third-party DERMS platform subscription offset by grid services revenue

Technology

  • Above Average Technologies +
  • Fully integrated campus DER ecosystem: solar, storage, FCEV, V2G, BEMS, and microgrid controller
  • AI-driven DER optimization engine balancing cost, carbon, resilience, and grid services in real time
  • Blockchain or distributed ledger-enabled peer-to-peer clean energy trading

Process

  • Operating as a fully grid-interactive prosumer contributing dispatchable clean capacity to system operator
  • Publishing DER portfolio contribution to grid decarbonization in sustainability reporting
  • Partnering with utilities and regulators to shape DER compensation frameworks and tariff design

Financing

  • Full revenue stack monetized: energy arbitrage + DR + capacity + ancillary services + VPP aggregation
  • Campus DER portfolio securitized as clean energy infrastructure for institutional financing

Related Pathways

← All Pathways 2.2.2 VPPs 2.2.4 Microgrid