SGIP analyses transactive energy landscape

The Smart Grid Interoperability Panel (SGIP) issued a whitepaper highlighting the development, characteristics and benefits of transactive energy systems.

Transactive Energy (TE) is an energy distribution system which allows energy sourced from multiple distributed energy resources (DERs) to be integrated with the grid system through the use innovative smart grid and smart energy technologies.

According to the SGIP, the objectives of a TE system is to integrate DERs on grid networks to meet grid/customer demands and at the same time, ensure the coordination of integrated resources to improve system efficiency.

The Pacific North-West National Laboratory defines a TE system as a method for monetising values and incentivizing grid assets to respond.

TE systems can be centralised or distributed, involves transacting parties using automated applications, interacts across multiple time scales and negotiates objectives across multiple parties to balance the whole system while maintaining the stability of the grid.

The paper Transactive Energy Application Landscape Scenarios defines TE and discusses the process of integrating the energy sourced from DERs with grid networks.

The paper helps stakeholders in the energy and clean energy sectors to understand the function and importance of the TE business model to the energy sector.

SGIP also highlights stakeholders in different smart grid landscapes including aggregators, generators, customer facilities and regional transmission and distribution networks operators, and their roles and participation in development and operation of TE systems.

According to the SGIP, the paper aims to help:

  • Identify a core set of scenarios to act as a common foundation for identifying areas where standard interfaces between interacting parties can be defined
  • Identify gaps in existing TE standards and practices
  • Help identify opportunities for exploration of new standards and practices to advance grid-DER interoperability
  • Helps stakeholders identify TE systems by analysing their characteristics

The paper provides an analysis of TE scenarios including:

  • Peak Heat Day and Energy Supply whereby the grid system is severely strained in capacity and requires additional load shedding/shifting or storage resources.
  • Wind Energy Balancing Reserves: DERs are engaged based on economics and location to balance wind resources.
  • High-penetration of photovoltaics and Voltage Control: High penetration of rooftop solar PV causes swings in voltage on distribution grid
  • Electric Vehicles on the Neighborhood transformer: TE is used to manage over-loading at a specific transformer which serves several homes that each have fast charging EVs.
  • Islanded Microgrid Energy Balancing: A microgrid controller manages local resources and loads to maintain power quality in islanded mode.
  • System Constraint Resulting in Sudden Loss of Supply: A sudden transmission system constraint results in emergency load reductions. {CAISO boosts DER integration with formation of new division]


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Nicholas Nhede is an experienced energy sector writer based in Clarion Event's Cape Town office. He has been writing for Smart Energy International’s print and online media platforms since 2015, on topics including metering, smart grids, renewable energy, the Internet of Things, distributed energy resources and smart cities. Originally from Zimbabwe, Nicholas holds a diploma in Journalism and Communication Studies. Nicholas has a passion for how technology can be used to accelerate the energy transition and combat climate change.