Automation Workflow for Distribution Utility Non-Wires Alternative Procurement

By automating the identification of grid constraints and the procurement of DER services, utilities can address localized overloads with targeted, temporary capacity rather than building new substations or lines. This shifts the financial model from large, upfront CapEx (often $5M-$50M+) to a predictable, performance-based OpEx stream paid only for services rendered, improving capital efficiency and ratepayer impact.

Manual processes for identifying a constraint, running an RFP, negotiating contracts, and manually dispatching resources can take 12-18 months. An automated workflow ingests real-time SCADA/ADMS data, triggers a reverse auction via integrated DERMS platforms, executes standardized contracts, and autonomously dispatches assets when a constraint is predicted—collapsing the operational timeline and allowing the utility to respond to grid needs dynamically.

The automated marketplace creates a new, reliable revenue stream for third-party battery, solar, and flexible load owners by connecting them to grid service opportunities. Automated settlement and performance verification ensure timely, accurate payments based on telemetry, increasing participation and building a more robust portfolio of non-wires alternatives for the utility. This turns distributed assets into a liquid, dispatchable grid resource.

Manual processes introduce risk of missed dispatch, contract non-compliance, and audit failures. A custom workflow embeds approval gates for contract awards, real-time performance scoring against telemetry, and automated reporting for regulators. Every dispatch decision, payment calculation, and constraint event is logged with a full audit trail, strengthening the utility's position in rate cases and compliance reviews.

A one-off, manual procurement model does not scale. An automated, agent-based architecture (using frameworks like LangGraph or CrewAI) can manage a growing portfolio of thousands of DERs across multiple service territories. The system handles registration, qualification, bidding, and dispatch through standardized APIs, allowing the utility's non-wires program to grow without linearly increasing administrative staff.

Instead of reacting to a thermal overload alarm, the workflow uses forecasting models to predict constraints hours or days ahead. It then proactively procures and schedules DER dispatch, maintaining grid reliability within normal operating bands. This predictive optimization reduces wear on traditional equipment, minimizes customer voltage issues, and creates a more resilient, self-healing grid edge.

An ML agent analyzes historical SCADA data, weather forecasts, and load growth projections to predict future grid constraints (e.g., transformer overloads) 6-18 months out. It then autonomously triggers a reverse auction, issuing a request for proposals (RFP) to a pre-qualified pool of DER aggregators and asset owners. The agent evaluates bids based on cost, location, performance history, and resource type to shortlist the most viable non-wires solutions.

A centralized registry agent ingests telemetry and performance data from the utility's Distributed Energy Resource Management System (DERMS) and third-party aggregator platforms. It maintains a real-time inventory of enrolled assets—including solar-plus-storage systems, EV fleets, and flexible industrial loads—with their precise location, capacity, availability windows, and communication protocols (e.g., IEEE 2030.5, OpenADR). This system is the single source of truth for dispatch eligibility.

Upon auction award, a document agent generates the master services agreement and site-specific annexes using pre-approved legal clauses. It routes drafts for e-signature via integrated DocuSign or Adobe Sign APIs. A parallel compliance agent continuously monitors enrolled assets against contract terms (e.g., minimum availability, performance guarantees), automatically issuing cure notices or calculating liquidated damages for underperformance, with exceptions flagged for human legal review.

When a predicted constraint becomes imminent (e.g., within 24 hours), a dispatch agent receives a signal from the utility's ADMS/OMS. It runs a real-time optimization to select the lowest-cost combination of DERs to relieve the constraint, respecting asset states and contractual limits. The agent then issues secure dispatch instructions via DERMS APIs, while a coordination agent provides a real-time operational view to the utility's distribution system operator for situational awareness and manual override capability.

Post-event, a settlement agent ingests verified telemetry from meters and the DERMS, applies the complex payment formula from the contract (e.g., capacity reservation + performance payment), and generates an invoice. It cross-references this with the utility's internal financial system for approval and payment initiation. A separate analytics agent scores each asset's performance, updating its reliability rating in the registry for future auction weighting and identifying assets for corrective maintenance.

A centralized dashboard built on Grafana or similar provides real-time visibility into the entire workflow: constraint forecasts, active contracts, asset availability, dispatch events in progress, and settlement status. It includes pre-configured alerts for system failures, performance degradation, or market rule changes. All agent decisions, dispatches, and overrides are logged to an immutable audit trail (e.g., in DataDog or Splunk) to satisfy internal governance and regulatory requirements for non-wires program reporting.

This team defines the grid constraint (e.g., transformer overload, voltage violation) that triggers the NWA program. They provide the technical specifications for the required DER service (location, capacity, duration, performance). The automation workflow must ingest their constraint models and integrate with Distribution System State Estimation (DSSE) tools to validate that dispatched DERs are providing the intended relief, closing the operational feedback loop.

Responsible for running the automated auction or RFP process to solicit DER providers. The workflow must include agents for bid solicitation, evaluation (based on cost, reliability, location), and contract generation. Integration with customer CRM and DERMS is required for provider onboarding. Post-procurement, this team oversees the settlement and performance verification, requiring automated ingestion of telemetry and calculation of payments against market rules.

The ultimate users of the dispatched DERs. The control room needs real-time visibility into DER availability, state-of-charge, and active dispatch status within their ADMS/SCADA environment. The automation architecture must provide secure, low-latency control signals (e.g., using IEEE 2030.5 or OpenADR) and include mandatory human-in-the-loop approval gates before any automated dispatch affecting grid stability is executed, especially during emergency conditions.

Ensures the entire workflow adheres to state PUC regulations, tariff structures, and market rules. They define the governance controls for the AI agents, including audit trails for all procurement decisions and dispatch commands. The system must generate automated reports for regulatory filings (e.g., FERC, NERC) and support explainability queries to justify why specific DERs were selected or dispatched, mitigating compliance and litigation risk.

Owns the integration architecture between the new orchestration layer (built with frameworks like LangGraph or CrewAI) and legacy utility systems (SAP, Oracle, OSIsoft PI, SCADA). They enforce zero-trust security models for API connections to third-party DER aggregators and implement anomaly detection workflows to monitor for cyber threats in the OT data flows. Their sign-off is required on all data pipelines and control interfaces.

Focuses on the revenue assurance and cost avoidance ROI. The workflow must automate the meter data validation, performance scoring, and payment calculation to eliminate manual reconciliation. Integration with ERP and billing systems is critical for issuing payments to DER providers and capitalizing the avoided grid upgrade costs. This team relies on the system's automated reporting to track the NWA program's financial performance against the traditional CapEx alternative.