- Combined technologies bring grid-aware optimization to distributed energy resources, helping utilities expand capacity affordably
- Acquisition gives utilities tools to identify and value distributed resources, making it easier to justify investment decisions
- Electron expanding U.S. operations with Rhythmos technology after capturing the majority market share in U.K. flexibility markets
As electric vehicles (EVs), battery storage systems, and rooftop solar increase across distribution networks, utilities struggle to identify where these resources are located, quantify their grid impact, and reliably deploy them to defer costly infrastructure upgrades. To address this challenge, Electron, a leader in energy flexibility marketplaces, has entered into an agreement to acquire Rhythmos.io (“Rhythmos”), a pioneer in distributed energy resource (DER) detection and grid impact analytics. The acquisition combines Rhythmos’ advanced DER visibility technology with Electron’s flexibility marketplace capabilities to help utilities expand grid capacity affordably while managing growing electrification demand, potentially saving customers billions by deferring or eliminating the need for infrastructure investments.
The combined company will offer value orchestration technologies designed to bridge the gap between visibility and deployment. This will enable utilities to identify and measure the impact of distributed energy resources, such as EVs and batteries, on specific transformers and substations across their networks. This visibility allows utilities to deploy resources through competitive markets at both local distribution and system-wide levels, maximizing value for utilities and DER providers. The value orchestration technologies also provide regulatory-grade data that utilities can use to justify infrastructure decisions to regulators, proving when flexibility is more cost-effective than building new grid assets, or when traditional infrastructure investment is necessary.
“DERs have the potential to unlock significant system-wide savings by optimizing both energy use and grid infrastructure, and our experience running flexibility markets internationally shows these benefits are real and scalable,” said Jo-Jo Hubbard, CEO of Electron. “The challenge isn’t on the supply side—virtual power plants have already aggregated gigawatts of flexibility. The challenge lies on the buy side: utilities need better visibility, valuation tools, and market capabilities to build defensible business cases for relying on DERs at scale. With Rhythmos, we’re bridging that gap by bringing grid awareness to flexibility markets, which helps both utilities deploy resources more strategically and DER providers capture more value.”
Research shows that grid-aware optimization of DERs can unlock 10-30% in system-wide savings, with potential annual savings exceeding $10 billion across the U.S. utility sector. A study commissioned by Rhythmos found that utilities could save between $7 and $9 billion in transformer upgrade costs alone through optimized management of EV charging at the distribution grid level. This precision targeting allows utilities to defer specific infrastructure investments while avoiding unnecessary expenses that would otherwise be passed on to electricity customers through rate increases.
“For the first time, utilities can cost-effectively see precisely where distributed resources exist and how they affect the grid—right down to the service transformer using data they already have,” said Ken Munson, CEO of Rhythmos. “By pairing Rhythmos’ grid-edge visibility with Electron’s flexibility marketplace, utilities gain the situational awareness needed to make smarter, data-driven investment decisions. They can now demonstrate, with evidence, when local flexibility is more cost-effective than building new infrastructure—maintaining reliability while keeping power affordable for customers. Ultimately, we’re helping every distributed asset become more valuable by making the grid itself more intelligent.”
The value orchestration technologies are designed to work with, rather than replace, existing virtual power plant (VPP) platforms, demand response management systems (DERMS), and aggregation providers. By incorporating grid-aware price signals and coordinating how and when these resources are activated, the capabilities aim to increase the value captured by DER providers, while also providing utilities with the necessary visibility and control to fulfill regulatory requirements for infrastructure investment decisions.
Electron currently serves more than half of the distribution system operators in the United Kingdom and is expanding its operations in the U.S. market. Rhythmos has worked with major utilities, including several major investor and publicly owned utilities across the U.S., and has received grants from a state agency to pilot its DER detection and optimization technology.
The transaction terms were not disclosed. The acquisition is expected to close next month, subject to customary conditions.
