Software-Defined Energy Overview
Software-Defined Energy (SDE) treats energy systems as programmable, data-driven platforms. Grid connections, microgrids, battery energy storage systems (BESS), distributed energy resources (DER), and controllable loads are coordinated via software, telemetry, and optimization, rather than static one-time settings and manual dispatch.
This page positions SDE within the broader Software-Defined Systems (SDS) framework and explains how SDE relates to fleets, depots, industrial sites, and upstream grids and markets.
What Makes Energy “Software-Defined”
| Aspect | Conventional Energy Systems | Software-Defined Energy |
|---|---|---|
| Dispatch and control | Manual or fixed schedules, limited feedback | Automated, data-driven dispatch with continuous feedback |
| Integration with loads | Loads treated as mostly inflexible | Flexible loads coordinated with DER and storage |
| Visibility | Coarse metering and periodic reports | High-resolution telemetry and analytics |
| Adaptation | Slow response to tariffs, weather, and fleet changes | Dynamic response to price signals, forecasts, and operational needs |
| Coordination scope | Single site or isolated assets | Coordinated portfolios of sites, DER, and flexible loads |
SDE Within the SDS Framework
SDE is the energy expression of SDS, applying SDS building blocks to power systems from the feeder level up to distributed portfolios of sites.
| SDS Building Block | SDE Expression | Examples |
|---|---|---|
| Sensors and IoT layer | Power and energy measurements, status signals | Meters, CTs, PTs, breaker status, ESS telemetry, inverter data |
| Central compute | Energy management system (EMS) and microgrid controller | On-site EMS, portfolio controller, DERMS-like platforms |
| Networks and TSN | Reliable OT and IT communications for energy assets | Substation LANs, plant networks, secure WAN links to cloud |
| Data pipelines and telemetry | Time-aligned energy and status data flows | Power flows, state-of-charge (SOC), voltages, currents, prices |
| OTA and configuration updates | Remote updates for controllers, inverters, and BESS | Firmware, setpoints, protection parameters, tariff tables |
| Continuous learning loop | Using historical and live data to refine policies | Improved forecasting, dispatch policies, and contingency strategies |
| Digital twins | Microgrid, feeder, and portfolio models | Power flow studies, what-if analysis, outage and islanding scenarios |
| Cyber-physical security | Protection of energy controls and assets | Secure relays, gateways, segmentation, anomaly detection |
What SDE Covers
Software-Defined Energy spans the assets that generate, store, move, and consume electrical energy.
| Asset Class | Scope | Examples |
|---|---|---|
| Grid interface | Connections to utility and upstream networks | Feeders, transformers, switchgear, protection relays |
| Onsite generation | Local generation assets | PV arrays, wind, CHP units, backup generators |
| Energy storage | Short- and long-duration storage | BESS, thermal storage, flywheels where applicable |
| Controlled loads | Loads that can be shifted or shaped | EV charging, process loads, HVAC, pumps, industrial equipment |
| Controllers and markets | Decision and coordination layers | EMS, microgrid controllers, portfolio optimizers, market interfaces |
Relationship Between SDE, SDI, and SDV
SDE provides the energy backbone for SDI sites and SDV fleets. All three domains must be aligned for cost, reliability, and autonomy.
| Relationship | Description | Example |
|---|---|---|
| SDE–SDI | Coordinate microgrid and site-level controls | Align ESS dispatch and site loads with depot operations |
| SDE–SDV | Treat EV charging as a flexible energy resource | Shift charging windows based on price and grid constraints |
| SDE–SDR/SDIO | Manage energy use of robotics and industrial loads | Schedule high-energy production batches outside peak price windows |
Key SDE Capabilities
| Capability | Description | Why It Matters |
|---|---|---|
| Forecasting | Predict load, generation, and prices | Enables proactive dispatch and better use of DER and storage |
| Optimal dispatch | Decide when to draw from grid, DER, or storage | Reduces cost, supports resilience, and respects constraints |
| Tariff and market awareness | Incorporate tariffs and market products | Aligns operations with TOU pricing, demand charges, and incentives |
| Constraint management | Respect thermal, protection, and regulatory limits | Ensures safe operation of feeders, transformers, and protection devices |
| Resilience and islanding | Maintain critical services during grid events | Supports controlled islanding, black-start, and load shedding |
SDE Lifecycle View
SDE emphasizes that energy systems evolve with changing fleets, loads, tariffs, and regulatory environments.
| Lifecycle Stage | SDE Activities | Operational Implications |
|---|---|---|
| Planning and design | Assess loads, DER options, and capacity constraints | Right-size feeders, transformers, DER, and ESS |
| Installation and commissioning | Integrate assets into EMS and protection schemes | Ensures stability, safety, and correct control boundaries |
| Steady-state operation | Run day-ahead and real-time optimization | Balances cost, reliability, and performance |
| Adaptation and scaling | Add DER, storage, or loads, and update policies | Supports fleet growth and plant expansions |
| End-of-life and repowering | Retire or repower assets, update models | Maintains portfolio performance as components age |
SDE and Energy / Operations Stakeholders
For energy and operations leaders, SDE is about making energy a controllable lever for cost, resilience, and autonomy.
| Stakeholder Concern | Relevant SDE Property | Questions to Ask Vendors |
|---|---|---|
| Energy cost and volatility | Forecasting, optimization, and tariff handling | How do you model tariffs, demand charges, and incentives? |
| Reliability and resilience | Microgrid and islanding capabilities | How do you handle outages, black-start, and critical loads? |
| Fleet and site integration | APIs and control interfaces to SDI and SDV | How do you coordinate charging and site loads with energy constraints? |
| Scalability | Ability to support multiple sites and assets | How does the platform handle portfolio growth? |
| Compliance and safety | Adherence to protection, interconnection, and safety standards | How are protection settings and interconnection limits enforced? |
Design Questions for SDE Platforms
When designing or evaluating SDE platforms, the following questions frame architecture, scope, and roadmap.
| Question | Architectural Impact |
|---|---|
| What is the geographic and asset scope of coordination? | Determines hierarchy of controllers and communication patterns |
| What forecasting horizons and resolutions are needed? | Drives data requirements and algorithm selection |
| Which loads can be flexible, and how? | Shapes control strategies and integration with SDI and SDV |
| What reliability and resilience objectives are mandatory? | Impacts DER sizing, ESS capacity, and control logic for contingencies |
| How will the platform evolve with regulations and markets? | Requires modular rule-handling, configuration, and compliance support |
Software-Defined Energy provides the programmable energy backbone for modern fleets, depots, factories, and campuses. It turns power systems from static infrastructure into dynamic assets that support cost control, resilience, and higher levels of autonomy across the entire SDS stack.