The power grid is becoming more decentralised and dynamic.
As we discussed in our previous article, energy providers must connect operational technology (OT) with enterprise IT to thrive in this evolving environment.
Success in Demand Response (DR) and Distributed Energy Resource Management Systems (DERMS) depends on this seamless integration – turning complexity into opportunity. IT/OT convergence is a continuous transformation, one that unites real-time control, advanced data analytics and robust security under a unified strategy.
Integration that enables growth
For IT/OT convergence to be effective, utilities need to integrate operational systems, like Supervisory Control and Data Acquisition (SCADA), Advanced Distribution Management Systems (ADMS) and remote sensors, with IT platforms such as meter data management, market settlements and customer analytics.
Many organisations struggle with siloed legacy systems, making interoperability a priority. The ideal approach is to phase in modern, standards-based interfaces that allow for scalability as more distributed resources come online.
This is particularly vital for DERMS, which must aggregate and process data from diverse sources including solar inverters, batteries and DR platforms without overwhelming network or analytics capacity.
AI-driven optimisation at the edge
With the right data flows, AI can predict load peaks, forecast renewable generation dips, and trigger corrective actions in real time.
The real power of AI lies not just in offline analysis but in embedding intelligence directly into control loops, enabling near-instantaneous decision-making. By leveraging cloud and edge computing, energy providers can dynamically align distributed resources with grid conditions, shifting from broad, system-wide commands to precise, context-aware interventions.
Overcoming operational challenges
Scaling IT/OT integration means managing thousands of distributed endpoints, from thermostats and EV chargers to microgrids – all requiring reliable, low-latency connections.
A microservices-driven architecture supports agility and adaptation, while strong collaboration between IT and OT teams ensures alignment. Establishing cross-functional centres of excellence is recommended to proactively address data quality, bandwidth and security concerns before they impact grid stability.
Security and compliance at the core
Connecting OT devices to enterprise networks expands the attack surface, making cybersecurity a non-negotiable priority.
A layered security approach including network segmentation, encrypted data exchanges and advanced intrusion detection, ensures resilience. Meanwhile, regulatory changes like FERC Order 2222 are redefining how distributed energy resources (DERs) participate in wholesale markets, demanding robust telemetry, control and cyber protections.
With regulations expected to tighten, utilities that build strong security and compliance foundations today will avoid costly redesigns in the future.
The road ahead
Investing in custom IT/OT solutions tailored specifically to utility operations significantly reduces the total cost of ownership. Customisation enables precise alignment with existing infrastructure, reduces integration complexity and eliminates redundancies inherent in generic, off-the-shelf products.
Additionally, custom solutions empower utilities to own their intellectual property, fostering innovation and providing a competitive advantage in rapidly evolving energy markets. Over time, this approach not only reduces capital and operational expenditures but also facilitates quicker adaptation to future technological and regulatory changes.
IT/OT convergence isn’t just about operational efficiency – it’s a catalyst for broader grid modernisation. By enabling seamless data exchange between operational systems, AI models and market signals, energy providers can build sophisticated virtual power plants that optimise supply and demand at scale.
This shift not only reduces capital expenditure but also opens new revenue opportunities in market participation. Those who embrace this transformation will gain the agility to meet evolving market and regulatory demands, while also strengthening the foundation for a more sustainable energy future.