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May 17-19, 2016 Portland, Oregon GridWise ® Architecture Council

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May 17-19, 2016

Portland, Oregon

GridWise® Architecture Council

December 10-11, 2014

Portland, Oregon

GridWise® Architecture Council

The Chemistry of

Transactive Energy

Systems

an unconventional look at the

transactive energy framework

Tom Sloan

Kansas House of Representatives

GridWise Architecture Council Member

32016

Harnessing Flexibility in an Evolving Electric Power SystemT R A N S A C T I V E E N E R G Y S Y S T E M S

Portland, OR

Dmitri MendeleevElements are grouped according to their properties

42016

Harnessing Flexibility in an Evolving Electric Power SystemT R A N S A C T I V E E N E R G Y S Y S T E M S

Portland, OR

TE Characterization Groups• Principles

• Guiding Architectural Principles

• Attributes

• Layers

52016

Harnessing Flexibility in an Evolving Electric Power SystemT R A N S A C T I V E E N E R G Y S Y S T E M S

Portland, OR

The Periodic Table of TE

Principles LayersAttributesGuiding

Architectural

Principles

62016

Harnessing Flexibility in an Evolving Electric Power SystemT R A N S A C T I V E E N E R G Y S Y S T E M S

Portland, OR

Principles of TE

Transactive energy

systems should

maintain system

reliability and control

while enabling optimal

integration of

renewable and

distributed energy

resource

Transactive energy

systems should be

observable and

auditable at interfaces

Transactive energy

systems implement

some form of highly

coordinated self-

optimization

Transactive energy

systems should be

scalable, adaptable,

and extensible across

a number of devices,

participants, and

geographic extent

Transactive energy

systems should

provide for non-

discriminatory

participation by

qualified participants

Transacting parties

are accountable for

standards of

performance

6 Principles

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Harnessing Flexibility in an Evolving Electric Power SystemT R A N S A C T I V E E N E R G Y S Y S T E M S

Portland, OR

Guiding Architectural Principles of

TE

The ability of the

transactive energy

system to operate should

not be limited to any

specific type of

communications network

or specific technology

Strong consideration

should be given to the

inherent structure of the

energy systems under

consideration

To the extent possible,

the architecture should

be adaptable to changes

in underlying energy

systems, in terms of

structure, capabilities,

business models, and

innovation in value

creation and realization

The architecture should

be agnostic to the

general physical layer :

specific sensors and

controls, energy types,

etc., should not be

specified nor eliminated

by the architecture

The architecture should

accommodate open

international standards,

and must not restrict

implementations to

proprietary interfaces,

algorithms,

communication

protocols, or application

message formats

Self-similarity or an

approximation may be

evident in the relevant

structures and should be

considered as a means

to obtain scalability and

organizational regularity

Layering for optimization

decomposition may be

considered as a

mathematical foundation

for structure of the

control and coordination

portions of the

architecture

The architecture should

include plans for

convergence of network

types over time: physical

networks (energy system

infrastructures),

information and

communication networks,

financial networks, and

social networks

8 Guiding

Architectural

Principles

82016

Harnessing Flexibility in an Evolving Electric Power SystemT R A N S A C T I V E E N E R G Y S Y S T E M S

Portland, OR

Attributes of TE

Transacting

parties

Extent

Architecture

Transaction

Interoperability

Temporal

variability

Transacted

Commodities

Value

discovery

mechanism

Assuring

stability

Alignment of

objectives

Assignment of

value

11 Attributes

92016

Harnessing Flexibility in an Evolving Electric Power SystemT R A N S A C T I V E E N E R G Y S Y S T E M S

Portland, OR

Layers of TE

Cyber-Physical

Infrastructure

Policy & Market

Design

Conceptual

Architecture

Guidelines

Business Models

& Value

Realization

4 Layers

102016

Harnessing Flexibility in an Evolving Electric Power SystemT R A N S A C T I V E E N E R G Y S Y S T E M S

Portland, OR

RC

XT

SO

OA

ND

AC SS

ST

OS

CH

AG

LA NL

CN TP

EX

AR

TX

IO

TV

TC

VD

AS

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AV

CP

PM

CA

VR

Principles LayersAttributesGuiding

Architectural

Principles

What's your

challenge?

How do you

want to solve it?

How do you

want it to work?

Did you get it

right?

1234

112016

Harnessing Flexibility in an Evolving Electric Power SystemT R A N S A C T I V E E N E R G Y S Y S T E M S

Portland, OR

RC

XT

SO

OA

ND

AC SS

ST

OS

CH

AG

LA NL

CN TP

EX

AR

TX

IO

TV

TC

VD

AS

AO

AV

CP

PM

CA

VR

Innovative business leaders anticipate and/or

create market and customer opportunities by

creating and sharing new value streams with

customers, aided by new and innovative market

designs and regulatory policies

The stability of grid control and economic

mechanisms is required. The operationalization of

grid stability will ultimately be dependent on the

economic incentives provided the TES participants

to value system stability over individual short-term

participant benefit.

The architecture should include plans for

convergence of network types over time:

physical networks (energy system

infrastructures), information and

communication networks, financial

networks, and social networks.

TESs should maintain system

reliability and control while enabling

optimal integration of renewable and

DERs

Microgrid Example

122016

Harnessing Flexibility in an Evolving Electric Power SystemT R A N S A C T I V E E N E R G Y S Y S T E M S

Portland, OR

Thank You