Transactive energy

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Transactive energy refers to the economic and control techniques used to manage the flow or exchange of energy within an existing electric power system in regards to economic and market based standard values of energy. [1] It is a concept that is used in an effort to improve the efficiency and reliability of the power system, pointing towards a more intelligent and interactive future for the energy industry. [2]

Contents

Transactive energy promotes a network environment for distributed energy nodes as opposed to the traditional hierarchical grid structure. The network structure allows for communication such that all levels of energy generation and consumption are able to interact with one another, a concept that is also known as interoperability. In transactive energy, interoperability refers to the ability of involved systems to connect and exchange energy information while maintaining workflow and utility constraints. [1] The network is exponentially more complex than traditional control of generating sources because the demand side of the grid offers millions points of control in contrast with an average 10 to 20 power plant points of control on the supply side. [3]

Europe-based Efforts

Energy Flexibility Platform and Interface (EF-Pi)

The goal of the Energy Flexibility Platform and Interface (EF-Pi) [4] approach is to decouple Smart Grid services from the customer appliances.

This opens up the markets and gives the customer freedom of choice in Smart Grid services. The End user should be able to combine it with all the connected appliances they already own in their house, without losing control and ownership.

The EF-Pi is an open-source software platform that runs on low-power hardware located at a convenient place in the building. The EF-Pi communicates directly with smart appliances inside the building. The EF-Pi has an easy to use interface, which the end user can use to configure and control their own appliances and get insight in how their appliances are functioning.

The core of the EF-Pi is the Energy Flexibility Interface (EFI). The EFI is a generic interface which appliance manufacturers can use to describe energy flexibility, and which Smart Grid service developers can use to describe how they want to use this flexibility. The EFI effectively provides a common language for both sides, facilitating interoperability between all Smart Grid services and smart appliances. [5]

United States-based Efforts

Pacific Northwest Demonstration Project

The Pacific Northwest Demonstration Project is a 5-year U.S. Department of Energy (DOE) funded research and development project created for the purpose of exploring transactive energy concepts at the regional scale that was completed in June 2015. [6] The project participants included 11 utilities, two universities, and multiple technology companies to span five Pacific Northwest states: Washington, Oregon, Idaho, Montana, and Wyoming. [6]

The project evaluated 55 different technologies that could help reduce energy use and power bills, including smart meters, advanced energy storage, and voltage controls. [7] It also tested and determined the potential benefits of transactive controls within a regional power grid. Transactive control is a technology developed by the Pacific Northwest National Laboratory (PNNL) that entails "automatic, electronic transactions between energy providers and users about whether or not to sell or buy power." [7] In order to test this, transactive signals were used that would exchange information about predicted price and availability of power in real-time. This information was updated every 5 minutes. When peak power demand was predicted, the transactive control was designed to reduce power use. The project confirmed that transactive control technology works and can help improve energy efficiency and reliability, as well as reduce energy cost and encourage renewable energy usage. [7]

Public involvement was determined as a key parameter for smart grid deployment. Participants of the project emphasized the importance of customer engagement when new technologies are being implemented. [8]

The results of the project defined the next steps for implementing and improving transactive energy technologies. Several of the project participants have decided to continue smart grid programs on their own, even though the demonstration project is now complete, and new projects have also arisen from the results of the demonstration. [7]

GridSMART Demonstration Project

The gridSMART® Demonstration Project was implemented by AEP Ohio from 2009 to 2013. The project tested various new technologies for smart grid implementation on a local level including smart meters, distribution automation, volt-var optimization, consumer programs, plug-in electric vehicles, and smart appliances. [9] AEP utilized Grid Command, a tool that was developed in partnership with Battelle in order to model much of the gridSMART circuit layout. [10] The next steps for the next phase of gridSMART were identified to be upgrading current technologies in order to better manage supply, reduce costs, and minimize the number of customers affected by outages. This has been proposed through the installation of smart meter technology, distribution automation circuit reconfiguration (DACR), and volt var optimization (VVO). [9]

Testing included SMART Shift, a time-of-day rate plan that helps customers save money by load shifting and SMART Cooling, an air-conditioning technology that helps reduce peak demand in the summer. [11] During the project, eView was developed to assist customers in monitoring their electric use and costs as well as estimating current month usage to measure against their energy budget. [11] eView< is an in-home device that communicates with the smart meter through wireless technology and informs the consumer of the price of electricity and how much was being used. [12]

The project helped AEP Ohio in determining what methods and solutions would best help the company move forward in the growing industry. It was emphasized that customer experience and feedback is a very valuable and effective method of learning how to deliver electricity efficiently to customers. [11]

NIST Transactive Energy Challenge

The NIST Transactive Energy (TE) Challenge was designed to bring together researchers, companies, utilities and other grid stakeholders in order to explore the modeling and simulation platforms of TE, and the techniques that may be used to apply TE to real grid problems. [13] This challenge is intended to encourage and promote the development of modeling and simulation tools for transactive energy, as well as the development of a transactive energy community in which organizations and individuals can work together to share data and knowledge in order to cooperatively advance transactive energy. [13] It will demonstrate various transactive energy approaches and how it may improve the reliability and efficiency of the electric grid. [13]

Various teams were formed to explore different pathways for TE: [14]

The NIST TE Challenge is expected to be completed in September 2016. [13]

Standards

There are no current global standards to facilitate transactive energy. In the United States, the IEEE has a working group called P825 — Meshing Smart Grid Interoperability Standards to Enable Transactive Energy Networks to develop transactive energy guidelines.

Related Research Articles

Distributed generation, also distributed energy, on-site generation (OSG), or district/decentralized energy, is electrical generation and storage performed by a variety of small, grid-connected or distribution system-connected devices referred to as distributed energy resources (DER).

Energy demand management, also known as demand-side management (DSM) or demand-side response (DSR), is the modification of consumer demand for energy through various methods such as financial incentives and behavioral change through education.

<span class="mw-page-title-main">Vehicle-to-grid</span> Vehicle charging system that allows discharge and storage of electricity

Vehicle-to-grid (V2G), also known as Vehicle-to-home (V2H), describes a system in which plug-in electric vehicles (PEV) sell demand response services to the grid. Demand services are either delivering electricity or by reducing their charging rate. Demand services reduce pressure on the grid, which might otherwise experience disruption from load variations. Vehicle-to-load (V2L) is related, but the AC phase is not sychronised with the grid, so the power is only available to an "off grid" load.

<span class="mw-page-title-main">Demand response</span> Techniques used to prevent power networks from being overwhelmed

Demand response is a change in the power consumption of an electric utility customer to better match the demand for power with the supply. Until the 21st century decrease in the cost of pumped storage and batteries electric energy could not be easily stored, so utilities have traditionally matched demand and supply by throttling the production rate of their power plants, taking generating units on or off line, or importing power from other utilities. There are limits to what can be achieved on the supply side, because some generating units can take a long time to come up to full power, some units may be very expensive to operate, and demand can at times be greater than the capacity of all the available power plants put together. Demand response, a type of energy demand management, seeks to adjust in real-time the demand for power instead of adjusting the supply.

A microgrid is a local electrical grid with defined electrical boundaries, acting as a single and controllable entity. It is able to operate in grid-connected and in island mode. A 'Stand-alone microgrid' or 'isolated microgrid' only operates off-the-grid and cannot be connected to a wider electric power system.

Electrical devices are considered grid friendly if they operate in a manner that supports electrical grid reliability through demand response. Basic grid-friendly devices may incorporate features that work to offset short-term undesirable changes in line frequency or voltage; more sophisticated devices may alter their operating profile based on the current market price for electricity, reducing load when prices are at a peak. Grid-friendly devices can include major appliances found in homes, commercial building systems such as HVAC, and many industrial systems.

<span class="mw-page-title-main">Smart meter</span> Online recorder of utility usage

A smart meter is an electronic device that records information—such as consumption of electric energy, voltage levels, current, and power factor—and communicates the information to the consumer and electricity suppliers. Such an advanced metering infrastructure (AMI) differs from automatic meter reading (AMR) in that it enables two-way communication between the meter and the supplier.

Dynamic Demand is the name of a semi-passive technology to support demand response by adjusting the load demand on an electrical power grid. It is also the name of an independent not-for-profit organization in the UK supported by a charitable grant from the Esmée Fairbairn Foundation, dedicated to promoting this technology. The concept is that by monitoring the frequency of the power grid, as well as their own controls, intermittent domestic and industrial loads switch themselves on/off at optimal moments to balance the overall grid load with generation, reducing critical power mismatches. As this switching would only advance or delay the appliance operating cycle by a few seconds, it would be unnoticeable to the end user. This is the foundation of dynamic demand control. In the United States, in 1982, a (now-lapsed) patent for this idea was issued to power systems engineer Fred Schweppe. Other patents have been issued based on this idea.

<span class="mw-page-title-main">Smart grid</span> Type of electrical grid

A smart grid is an electrical grid which includes a variety of operation and energy measures including:

<span class="mw-page-title-main">Electrical grid</span> Interconnected network for delivering electricity from suppliers to consumers

An electrical grid is an interconnected network for electricity delivery from producers to consumers. Electrical grids vary in size and can cover whole countries or continents. It consists of:

IEEE 2030 was a project of the standards association of the Institute of Electrical and Electronics Engineers (IEEE) that developed a "Guide for Smart Grid Interoperability of Energy Technology and Information Technology Operation with the Electric Power System (EPS), and End-Use Applications and Loads".

The smart grids in South Korea constitute a platform that is re-imagining electricity grids, equipping it with technology that allows more capability, particularly in addressing the demands of the 21st century and the future. This process follows a modular approach to grid construction and focuses on the development of the IT-enabling of its electric power generation system. The country views the smart grids, along with the so-called "new energy industries", as an emergent pillar of the Korean economy.

The OpenHAN standards for home networks was promoted by groups such as openAMI and UtilityAMI. Both efforts aim to standardize powerline networking interoperation from a utility point of view and ensure reliable communications co-extant with AC power outlets. Both utilities and vendors of home control have promoted such standards aggressively. The openHAN label usually denotes standards favored by the utilities, not other service providers. It should be distinguished from the openADR standards that were promoted to ensure open access to customer electricity use data by all service providers.

Open Automated Demand Response (OpenADR) is a research and standards development effort for energy management led by North American research labs and companies. The typical use is to send information and signals to cause electrical power-using devices to be turned off during periods of high demand.

The term Smart Grid describes a next-generation electric power system, that is classified by the increased use of communication and information technology in the generation, delivery, and consumption of electrical energy. For individual consumers, smart grid technology offers more control over electricity consumption. Typically, the goal is overall greater energy efficiency.

GridLAB-D is an open-source simulation and analysis tool that models emerging smart grid energy technologies. It couples power flow calculations with distribution automation models, building energy use and appliance demand models, and market models. It is used primarily to estimate the benefits and impacts of smart grid technology.

<span class="mw-page-title-main">IEEE Smart Grid</span>

IEEE Smart Grid is an initiative launched by IEEE to help provide expertise and guidance for individuals and organizations involved in the modernization and optimization of the power grid, better known as the "smart grid". IEEE Smart Grid encompasses an array of activities, including development of new smart grid-related standards, best practices, publications, and conferences and educational opportunities.

The UCLA Smart Grid Energy Research Center (SMERC), located on the University of California Los Angeles (UCLA) campus, is an organization focused on developing the next generation of technologies and innovation for SmartGrid. Partnerships with government, technology providers, DOE research labs and universities, utilities, policymakers, and electric vehicle and appliance manufacturers provide SMERC with diverse capabilities and exceptional, mature leadership.

Smart Grid Interoperability Panel or SGIP is an organization that defines requirements for a smarter electric grid by driving interoperability, the use of standard, and collaborating across organizations to address gaps and issue hindering the deployment of smart grid technologies.

In electric power distribution, a fractalgrid is a system-of-systems architecture of distributed energy resources or DERs. In a fractalgrid topology, multiple microgrids are strategically arranged to follow a fractal or recursive pattern. Fractals, or self-similar patterns, can be seen in nature. Clouds, river networks, and lightning bolts are a few examples of natural phenomena that display fractal features. In a fractalgrid, a microgrid may be composed of smaller microgrids or “fractal units”. In such a configuration, the network becomes one of simplified power flows and communications through distributed substations.

References

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