By Terry Paddy, Managing Director, Cortexo Limited
What is OpenADR?
OpenADR is a recognised global standard that enables secure, automated communication for demand flexibility (DF). It connects electricity transmission, distribution, aggregation and consumers to coordinate energy use during peak demand periods.
By sending automated signals to adjust consumption, OpenADR supports grid stability, reduces operational costs, and unlocks the full potential of distributed energy resources (DERs), such as solar, battery storage, and EV chargers.
Benefits of OpenADR for Electricity Distribution
OpenADR offers clear, tangible benefits for utilities, aggregators, and energy users:
Automation: Reduces manual effort through real-time energy adjustments
OpenADR offers significant advantages for utilities, businesses, and energy consumers. One of the primary benefits is automated demand response, which reduces the need for manual intervention and enhances efficiency. By enabling automatic load adjustments, OpenADR ensures energy consumption aligns with grid stability needs.
Reliability: Helps prevent blackouts by shifting demand during peak periods
Another major benefit is grid reliability. By shifting or reducing demand during peak hours, OpenADR helps prevent power shortages and blackouts. This is especially important in regions with high energy demand or intermittent renewable energy generation.
OpenADR also plays a crucial role in integrating distributed energy resources, ensuring that energy generated from sources like solar panels or wind farms can be effectively managed and utilised in demand response programmes.
DER Integration: Ensures locally generated energy is used effectively
Additionally, OpenADR contributes to cost savings for both utilities and consumers. Businesses participating in demand response programmes can benefit from lower electricity rates and financial incentives.
Utilities, meanwhile, reduce the need for expensive infrastructure upgrades by better managing energy loads. By leveraging distributed energy resources, OpenADR enhances cost efficiency by reducing reliance on large-scale power plants and making better use of locally generated energy.
Cost Savings: Reduces reliance on infrastructure upgrades and enables participation in DR programmes
As a recognised smart grid standard, OpenADR also supports long-term cost reductions by improving operational efficiencies and grid-wide automation.
Scalability: Supports both small-scale users and complex utility networks
Aggregators further enhance these cost savings by optimising energy distribution across multiple users, allowing smaller participants to access the financial benefits of demand response programs.
With OpenADR, businesses can respond to price signals and reduce energy use when rates are high. For utilities, it means more efficient load management and less pressure on the grid.
World-leading Case Studies of OpenADR
1. Europe’s changing standards for EV charging
There’s growing momentum for OpenADR adoption, particularly in Germany and across Western Europe. It is fast becoming the most common standard for EV charging demand response applications (AMPECO, November 24).
2. United Kingdom returning value to customers
The New Hampshire Electric Coop launched a Transactive Energy Rate programme in January 2023 to help members reduce energy costs and encourage the adoption of Distributed Energy Resources. They were successful in this, returning energy to the grid and value to members (OpenADR Alliance, March 25).
Alongside this, the UK Energy Networks Association are assessing OpenADR 3.0 as a common dispatch mechanism for the UK (Open Networks, October 2024).
3. United States improvements to grid reliability
Utility Companies like Southern California Edison are adopting OpenADR to manage energy demand and improve grid reliability. Their demand response programs are being promoted to their customers to help them save on energy bills (SCE, March 25).
4. Japan’s electricity industry reforms
The country is undergoing significant reform to enhance grid reliability, manage energy demand, and support its energy transition goals.
Here are key ways Japan is integrating OpenADR into its dispatch systems: Demand Response Automation, Integration with Energy Management Systems, Dispatch for Grid Stability, Support for Renewable Energy Integration, Market Participation, Virtual Power Plants (Ministry of Economy, Trade and Industry, Japan, April 2021).
OpenADR Implementation – Steps & Best Practices
Step 1. Assess Demand Response Readiness
Before implementing OpenADR, energy providers must evaluate their current infrastructure. This includes assessing grid management systems, existing energy management technologies, and compliance requirements. Understanding a facility or utility’s needs is key to selecting the right OpenADR solution.
Step 2. Choose the Right OpenADR Version
Organisations must determine whether OpenADR 2.0a, OpenADR 2.0b or OpenADR 3.0 is better suited for their operations. Smaller facilities may opt for the simpler OpenADR 2.0a, while utilities managing complex energy networks likely need OpenADR 2.0b or OpenADR 3.0.
Step 3. Deploy Virtual End Nodes (VENs)
VENs can be integrated into energy management systems and devices that automatically respond to OpenADR signals. These could include HVAC systems, industrial processes, and lighting controls. The VEN might also act as a high-level coordinator (e.g. aggregators) of distributed energy resources, communicating through their protocols, like EV chargers talking OCPP.
Step 4. Integrate with Energy Management Systems (EMS)
For maximum efficiency, OpenADR should be integrated into existing Energy Management Systems (EMS). This allows businesses and utilities to monitor and optimise energy use based on real-time data.
Step 5. Monitor and Optimise
Once OpenADR is implemented, ongoing monitoring is crucial. Utilities and businesses should track performance metrics to ensure that demand response events are effective and adjust as needed.
OpenADR Certification & Compliance
To ensure seamless interoperability, all OpenADR-enabled devices and systems must obtain certification from the OpenADR Alliance. This certification guarantees that systems meet industry standards and are fully compatible with demand response programmes. Compliance with OpenADR standards is essential for ensuring reliability and avoiding implementation issues.
Cortexo has two OpenADR-certified products: Flexsplice Hub, a Virtual Top Node (VTN) and Flexsplice Edge, a Virtual End Node (VEN).
Conclusion
OpenADR isn’t just a protocol—it’s a proven way to build smarter, more resilient energy systems. Wherever you are in your energy journey, we’re here to help you take the next step.
For further details on partnering with Cortexo for demand flexibility projects, reach out to Terry Paddy at terry.paddy@cortexo.com or 021 359 868.
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