In line with the recent growing interest in having transactive energy or TE (as shown in New York’s visionary discussions; lead by national labs and implemented by United States) other countries are joining in the conversation such as companies from Denmark (PowerMatcher) and Australia (Power Ledger.)
The similar and almost the same strategies are being driven by the fact that these companies came to a realization that there should be newer approaches on how to efficiently and reliably integrate the existing distribute energy resources (DERs.) In order for them to effectively adapt to several changing preferences across electricity consumers. With this in mind, TE is one of the best solution there is.
Last 2011, the GridWise® Architecture Council (GWAC) planned and conducted an initial workshop to discuss TE. This workshop brought together several researchers and practitionares across different companies such as: utilities, vendors, labs and academia. Ever since, TE has shown great growth in subject to the annual conferences which constitute several participants: the Smart Electric Power Alliance (SEPA) Transactive Energy working group, and the National Institute of Standards and Technology (NIST) Transactive Energy Challenges.
The GWAC body defined what TE is: a system composed of economic and control mechanisms that gives provision for the dynamic balance of supply and demand happening across the entire electrical infrastructure that utilizes the value as one of the key operational parameter.
However, the definition is neither a specification or a given standard. TE is an effective approach to what describes the economic and control tools for effectively managing all elements within a given grid. Whether if it is a single building or different series of interconnected, internationally located utilities. One of the key operational parameter (what we call as “value”) does not have to be entirely economic. This can serve as a personal or individual comfort or it can go as global as delivering sustainable energy that helps in the improvement of people’s lives.
With this in mind, the delivery of electricity is about having the right balance. According to the recent research done by Erich Gunther, the former GWAC chairman emeritus, one of the pesky law of physics requires generation, movement and utilization of electricity be balanced at all times. Like in governance, policy makers should show equality in historical precedent that follows existing investment as well as local views.
In terms of regional or bulk level. One of the wholesale markets shows the reliability and efficiency of this system by assigning a good financial value in addition to the balance of supply and demand. As well as measuring some of the financial cost for some of the unforeseen uncertainties that are inherent from both sides that brings power delivery. Some of these markets and reliability form structures that effectively integrates the intermittent technologies like the grid-scale renewables and storage. This maintains the availability, affordability, as well as the reliability.