Software-Defined Energy

assets · controllers · EMS · markets

The same battery can earn very different revenue under different software. In energy, software decides what hardware is worth.

The software-defined energy stack, top to bottom: markets and utility signals (prices, demand response, grid services); the energy management system that forecasts, optimizes and schedules; site and device controllers (inverters, battery management, chargers); and energy assets (solar, batteries, loads and the grid connection). SOFTWARE-DEFINED ENERGY STACK Markets and utility signalsprices, demand response, grid services Energy management systemforecast, optimize, schedule Site and device controllersinverters, BMS, chargers Energy assetssolar, batteries, loads, grid connection
Layers
4
Decides
Charge/discharge
Earns from
Markets, demand charges
Key system
EMS
Hub
Systems

Finding

In software-defined energy, the control software - not the hardware - largely decides what a battery, microgrid or flexible load is worth

Software-defined energy treats batteries, solar, chargers and controllable loads as one programmable system. An energy management system (EMS) forecasts generation, load and prices, then schedules every device - charging the battery at midday, discharging at the evening peak, slowing fleet charging when the site nears its demand limit. Two identical batteries can earn very different revenue under different software.

Inverters are the hinge: grid-forming inverters can set voltage and frequency themselves, letting a microgrid island and restart without the grid. Market rules decide what software can earn - ERCOT's energy-only market rewards fast batteries, which is one reason Texas leads new US storage. See AI in Energy, Microgrids and Energy Orchestration.

Functions

SDE functions

SDE functions
FunctionWhat it doesExample
ForecastingPredict solar, load, pricesDay-ahead and intraday
OptimizationPlan charge/dischargeArbitrage, peak shaving
DispatchSend setpoints to devicesInverters, chargers
Grid servicesFrequency and voltage supportERCOT ancillary services
IslandingRun without the gridGrid-forming inverters

Sources

Sources and scope

Scope
Software-Defined Energy
Sources
ElectronsX framework
Updated
October 2026