Transactive Energy Explained for Manufacturers

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By definition, transactive energy or TE is a growing energy source as evidenced by New York’s top vision discussions and also in Denmark and Australia. 

Transactive Energy is one part of the big solution to come up with new approaches to integrate distributed energy resources to adapt to varying changes and preferences of electricity consumers. Engineers should come up with more efficient and reliable ways. 

Because of these developments, the GridWise® Architecture Council (GWAC) conducted a workshop about transactive energy that brought together different practitioners from academia, vendors, labs, and utilities. Ever since then, the transactive energy became a very powerful subject across annual conferences.  

The GWAC board members gave transactive energy its formal definition. It is the overall system of economic and control mechanisms, which allows a very good balance of supply and demand for electricity across the electrical infrastructure. This serves as one of the fundamental operational parameters. 

However, this is not to be reckoned as a specification or a standard. Transactive energy should be perceived as a good way to give definition to economic and control tools in managing the elements in a grid. Whether it can come to a form of a single building, or a series of interconnected, international utilities. One of its key operational parameters should not be economic. It can go down to its micro-level such as giving comfort to individual consumers or it can go as wide as delivering sustainable energy that can help improve people’s lives. 

In delivering electricity, it is always about having the right balance. According to the GWAC, physics require the equilibrium between generation and movement of electricity. In a similary way, the policymakers are required to balance the historical precedent, local views, and existing investments in a certain country. The consumers also need to have a good balance between the needs and desires together with the price, availability, and usability of electricity and other devices. In essence, the manufacturers need to have balanced goals for their organizations amidst some existing limitations. 

In some of the bulk or regional level, the electricity companies make sure that the efficiency and reliability of the electricity bring financial value. This is done by balancing the supply and demand as well as calculating the cost of some uncertainties. The market and the reliable structures make the integration of this technology like grid-scale renewables and storage. While doing this, they also target to maintain the availability, affordability, and reliability of the electricity being distributed. To make sure reliability to deliver electricity to customers, includes protection of their equipments, therefore, cabinets that protect all equipments are extremely important. NEMA 4X rack server cabinets are usually come to the picture which will protect equipments from heavy direct water in outdoor and indoor environment.

While in the microgrid, local, or building level, assessment should be done from the historical paradigm that is being needed or occurring. Together with the enhanced performance and with the declining cost of electricity coming from smaller-scale renewable energy sources, the lawmakers are making a way to have an efficient use and acquisition of this type of energy sources. Together with the increasing demand for electricity, the government is more keen to make the availability of these energy sources become cost-efficient. As these technologies became more and more efficient and cost-efficient, the should be a robust response in the maintenance and enhancement of safety, reliability, and distribution resilience of these energy systems.