This paper reviews the state of the art of research and industry practice on demand response and the new methodology of transactive energy. Demand response programs incentivize consumers to align their demand with power supply conditions, enhancing power system reliability and economic operation. The design of demand response programs, performance of pilot projects and programs, consumer behaviors, and barriers are discussed. Transactive energy is a variant and a generalized form of demand response in that it manages both the supply and demand sides. It is intended for a changing environment with an increasing number of distributed resources and intelligent devices. It utilizes the flexibility of various generation/load resources to maintain a dynamic balance of supply and demand. These distributed resources are controlled by their owners. However, the design of transaction mechanisms should align the individual behaviors with the interests of the entire system. Transactive energy features real-time, autonomous, and decentralized decision making. The transition from demand response to transactive energy is also discussed.

SUMMARYRecent large-scale blackouts in North America, Europe, and other countries raised great concerns over the reliability of our electric energy infrastructure and the economic impacts of blackouts. These blackouts were caused by a cascading sequence of events involving line outages, overloading of other lines, malfunctions of protection systems, power oscillations and voltage problems, and system separation and collapse. In this paper, common characteristics of blackouts are identified by analyzing the cascaded events of the blackouts. It is important to take appropriate control actions to alleviate overload and emergency conditions in a power system in order to avoid catastrophic power outages. This paper discusses available control procedures and emergency control systems needed to help prevent catastrophic outages. Economic losses from these blackouts in the U.S., Europe, and other countries were significant. An evaluation of the economic costs of blackouts can be used to estimate the benefits of emergency control systems that can be installed to prevent blackouts. This paper provides an overview of the assessment methods and procedures for evaluation of the economic costs of blackouts. This paper also describes the generic procedure of an event study to measure the economic impact of blackouts on the values of the firms in financial markets.

Abstract:The increasing importance of system reliability and resilience is changing the way distribution systems are planned and operated. To achieve a distribution system self-healing against power outages, emerging technologies and devices, such as remote-controlled switches (RCSs) and smart meters, are being deployed. The higher level of automation is transforming traditional distribution systems into the smart distribution systems (SDSs) of the future. The availability of data and remote control capability in SDSs provides distribution operators with an opportunity to optimize system operation and control. In this paper, the development of SDSs and resulting benefits of enhanced system capabilities are discussed. A comprehensive survey is conducted on the state-of-the-art applications of RCSs and smart meters in SDSs. Specifically, a new method, called Temporal Causal Diagram (TCD), is used to incorporate outage notifications from smart meters for enhanced outage management. To fully utilize the fast operation of RCSs, the spanning tree search algorithm is used to develop service restoration strategies. Optimal placement of RCSs and the resulting enhancement of system reliability are discussed. Distribution system resilience with respect to extreme events is presented. Test cases are used to demonstrate the benefit of SDSs. Active management of distributed generators (DGs) is introduced. Future research in a smart distribution environment is proposed.