Transactive System: Part I: Theoretical Underpinnings of Payoff Functions, Control Decisions, Information Privacy, and Solution Concepts

Abstract

The increased penetration of renewable energy has significantly changed the conditions and the operational timing of the electricity grid. More flexible, faster ramping resources are needed to compensate for the uncertainty and variability introduced by renewable energy. Distributed energy resources (DERs) such as distributed generators, energy storage, and controllable loads could help manage the power grid in terms of both economic efficiency and operational reliability. In order to realize the benefits of DERs, coordination and control approaches must be designed to enable seamless integration of DERs into the power grid. Transactive coordination and control is a new approach for DER integration, where individual resources are automated and engaged through market interaction. Transactive approaches use economic signals-prices or incentives-to engage DERs. These economic signals must reflect the true value of the DER contributions, so that they seamlessly and equitably compete for the opportunities that today are only available to grid-owned assets. Value signals must be communicated to the DERs in near-real time, the assets must be imbued with new forms of distributed intelligence and control to take advantage of the opportunities presented by these signals, and they must be capable of negotiating and transacting a range of market-driven energy services. The concepts of transactive energy systems are not new, but build upon evolutionary economic changes in financial and electric power markets. These concepts also recognize the different regional structures of wholesale power markets, electricity delivery markets, retail markets, and vertically integrated service provider markets. Although transactive energy systems are not revolutionary, they will be transformational in their ability to provide flexibility and operational efficiency.A main goal of this research is to establish useful foundation for analysis of transactive energy systems and to facilitate new transactive energy system design with demonstrable guarantees on stability and performance. Specifically, the goals are to (1) establish a theoretical basis for evaluating the performance of different transactive systems, (2) devise tools to address canonical problems that exemplify challenges and scenarios of transactive systems, and (3) provide guidelines for design of future transactive systems. This report, Part 1 of a two part series, advances the above-listed research objectives by reviewing existing transactive systems and identifying a theoretical foundation that integrates payoff functions, control decisions, information privacy, and mathematical solution concepts. v

Transactive Energy: State-of-the-Art in Control Strategies, Architectures, and Simulators

“…They also discussed business models for TE, covering models such as state-regulated, investor-owned, and electric distribution cooperative utilities. Generally, the contents of [8] will be Details about existing TE pilot projects can be found in [9], [10], [12], [14]. Specifically, authors in [9] provided a summary of the different pilot TE projects and then summarized a number of articles where transactive control techniques in power system operations have been used.…”

“…Specifically, authors in [9] provided a summary of the different pilot TE projects and then summarized a number of articles where transactive control techniques in power system operations have been used. In [10], different existing TE pilot projects were classified and discussed based on the different countries wherein such projects were conducted. In addition, the authors also focused on the role of microeconomics in the design and analysis of TE systems.…”

Distributed Energy Trading Management for Renewable Prosumers with HVAC and Energy Storage

“…Energy-intensive appliances consume a tremendous amount of energy and pose challenges to our electric power system, hindering the energy transition toward affordable cost and low emission [1]. Among the power consumption of modern city buildings, the heating, ventilation, and air-conditioning (HVAC) system occupies a major chunk in both residential and commercial sectors [2,3]. As an indispensable component of residential life, the HVAC system incurs a persistent and uncurtailable energy cost in the users' homes.…”

Sensitivity Analysis of Occupant Preferences on Energy Usage in Residential Buildings

“…The GridWise® Architecture Council defines transactive energy as, "a system of economic and control mechanisms that allows the dynamic balance of supply and demand across the entire electrical infrastructure using value as a key operational parameter" [4]. Transactive energy extends the concept of demand response to both the supply side and demand side, and aims to balance supply and demand in a real-time, autonomous, and decentralized manner.…”