Transactive Energy Applications of eIoTThe previous chapters have situated the development of eIoT within an ongoing transformation of the electric power grid. In response to several energy-management change drivers, the grid periphery will be activated with an eIoT composed of network-enabled physical devices, heterogeneous communication networks, and distributed control and decision-making algorithms that are organized by welldesigned architectures and standards. When these factors are implemented together properly, they form an eIoT control loop that effectively manages the technical and economic performance of the grid. This control loop is most consonant with an emerging concept of transactive energy (TE).
Definition 4.1 (Transactive Energy [607])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.TE is commonly viewed as a collection of techniques to manage the exchange of energy in business transactions [47]. A utility, or any other private jurisdiction can implement TE between its various customers in industrial, commercial, and residential environments to manage DER technologies. TE applications incorporate the new eIoT-based activities for utilities, and industrial, commercial, and residential consumers. The result is better management of resources, successful integration of renewable energy, and increased efficiency in grid operations [47]. In many ways, TE is seen as an effective way to manage the technical and economic performance of various grid operations at all levels of control-commercial, industrial, or residential. As such, eIoT technologies directly support the implementation of TE applications.This chapter discusses how aspects of the eIoT control loop from Chap. 3 are reflected in various TE applications across different layers of the electricity value chain:• Section 4.1 discusses the role of TE in future grid applications and highlights some of the proposed TE frameworks. • Section 4.2 presents a few motivational use cases for TE frameworks.