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Overview of the Reference Guide: Services and Use Cases, Transactive Networks and Nodes, and Information Model
ROB PRATT, MGR. DISTRIBUTION & DEMAND RESPONSE BUSINESS LINE
Energy and Environment Directorate Richland, WA
May 19, 2014 1
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Purpose of the Reference Guide
The purpose of the Reference Guide is to describe the nature and characteristics of a transaction-based energy ecosystem.
Illustrate what we mean by a transaction-based energy network
Define a common basis for buildings, systems, & devices to interact with each other, the electric power grid, and 3rd-party providers of energy & various consumer services
Explain why are transactions central to this? Provide incentives that motivate behavior, provide ROI for bldg. comms. & controls Make tradeoffs of energy costs, comfort, & QoS* systematic, and co-optimize them Spur innovation in products & services, realize untapped energy efficiency opportunities Coordinate networks of assets that cross enterprise boundaries to achieve “control” Support plug-and-play integration of new assets & devices into bldg. and grid systems
2 http://www.pnnl.gov/main/publications/external/technical_reports/PNNL-23302_draft.pdf
Download the Reference Guide at:
* Quality of Service
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3
Peak G & T
Capacity Energy Cost
Savings
Carbon / RPS Credits
Distribution Voltage Mgmt.
re. Solar PV
Strategy: Support End-User & Grid-Related Services by Making Buildings Smarter
Equipment
Installation
Network & Comms.
ROI
Customer Incentives
M & V
Equipment & Materials
Installation
Network & Comms.
M & V
Wholesale / Production
Cost Savings Ancillary Services
Distribution Capacity
Energy Market/Grid Services (Utility or 3rd-Party Perspective)
End-User Services (Bldg. Owner Perspective)
Benefits Costs
$ Reduced
O&M
Increased Comfort
Benefits Costs
Add New Benefits
Add New Benefits
Add New Value Streams
Share Common
Invest- ments
Improve perfor-mance
Improve perfor-mance
3rd Party Investment
ROI
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What’s in the Reference Guide?
The Reference Guide describes the key functionality of a transaction-based energy network for buildings. To do this it:
Defines the types of exchangeable products, rights, & services involved
Categorizes types of transactions based on who is driving the exchange
Provides a set of use cases that illustrate the range of transactions such networks must support
Describes several prototypical transactive networks: within buildings among buildings and among devices & 3rd-parties across buildings with the power grid
Defines functionality of a general transactional node in such networks
Outlines a proposed information model for machine readable & executable transactions
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What Do We Mean By Transaction?
Transactional Energy Ecosystem: Construct integrating concepts of transactional energy & transactional control with a settlement (market) platform.
Transaction: Negotiated exchange of products, services & rights within structured or unstructured markets that enables allocation of value among all parties involved (e.g., settlement).
Transaction-based energy: Combination of information, data & energy infrastructure to enable energy-based transactions.
Transaction-based energy services: Services that generate pareto-optimal outcomes for energy providers & customers that balance all parties’ energy needs against available resources.
Transaction-based control: Means of executing transactions to accomplish automatic control of building equipment & other energy systems in response to data and value streams.
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Exchangeable Products, Services & Rights
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A transaction may involve delivery of:
a physical product, such as energy or electric power
a physical service, such as a building retrofit or operations & maintenance
information, such as diagnostics, advice, a control strategy, a software application
a right, such as a limit on the use of a share of capacity, or throughput on a delivery system (e.g., a bldg. system, the grid)
a financial product, such as a futures contract (advance purchase of energy)
Are there other important types of exchangeable products, services, and rights?
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Four Categories of Transactions
Distinguished by primary motivation (value derived) for the transaction
1. End-User Services – purchased by end users to balance and co-optimize their overall energy costs, comfort & convenience
2. Energy Market Services – the power grid offers to customers that reflect everyday costs of production & delivery
3. Grid Services – purchased or incentivized by the power grid that are required for its reliable operation
4. Societal Services – have a value agreed upon & acknowledged by society, monetized by a governing entity, with benefits provided to all involved or affected parties
Are there other important categories of transactions? 7
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Use Cases (1)
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End-User Services 3rd-party energy provider Efficiency shared savings Tenant contracts with building owner for energy* Transactive control for large commercial building HVAC systems* Diagnostics & automated commissioning* Data centers trade jobs Microgrid coordination* Trading positions in EV charging queue
Societal Services Emergency power rationing Efficiency incentive payment Air-shed management
We would like to describe even more end-user services.
Do you have any to offer?
* discussed in next presentation
+ ▬
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Use Cases (2)
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Grid Services Interruptible service or direct load control* Transactive retail energy market Trading allocated capacity rights Ancillary services via aggregator Transactive acquisition of ancillary services Rate dependent priority for cold load pickup
Energy Market Services Dynamic rate* Optimize EV charging for dynamic rate End-use differentiated dynamic rates Transactive energy market exchange Trading efficiency to relieve congestion Differentiated reliability service
Are you aware of other important use cases?
Where can we find descriptions of them?
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A Generic Transactive Node
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Generic Transactive Node Bid for services needed, evaluate & accept offers from supplier(s) Value offers for services rendered, evaluate & accept bids from buyers Implement local control of assets at the node accordingly Deliver products, rights, or service required by transaction Deliver data, measurements & verification as required by transaction Execute financial settlement as required by transaction Local
Control
Local Data
Buying
Selling
Delivery
Measurem
ent &
Verification
Offers Bids
Settlement
Delivery
Measurem
ent &
Verification
Offers Bids
Settlement
Remote Data
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A Generic Transactive Node
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Generic Transactive Node Bid for services needed, evaluate & accept offers from supplier(s) Value offers for services rendered, evaluate & accept bids from buyers Implement local control of assets at the node accordingly Deliver products, rights, or service required by transaction Deliver data, measurements & verification as required by transaction Execute financial settlement as required by transaction Local
Control
Local Data
Buying
Selling
Delivery
Measurem
ent &
Verification
Offers Bids
Settlement
Delivery
Measurem
ent &
Verification
Offers Bids
Settlement
Remote Data
Is this a sufficient definition of a generic node?
Will it serve all uses cases?
What is missing that is important?
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Information Model for Transactions
An information model must be developed to support machine-readable and executable transactions. Key elements describing a transaction include:
Exchangeable product, service, right, or financial product* Quantity & quality Time, place, & means of delivery Price, incentive, or value
Transacting parties unambiguously identified Monitoring/regulating entity (if any) Process for agreeing to a transaction
Negotiation, auction, etc.
Terms and conditions Measurements/data required & means of verifying/validating deliverable(s) Financial settlements & means of payment Financial penalties Default terms & conditions Repudiation Acknowledgement
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* may be a time-series
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Information Model for Transactions
An information model must be developed to support machine-readable and executable transactions. Key elements describing a transaction include:
Exchangeable product, service, right, or financial product* Quantity & quality Time, place, & means of delivery Price, incentive, or value
Transacting parties unambiguously identified Monitoring/regulating entity (if any) Process for agreeing to a transaction
Negotiation, auction, etc.
Terms and conditions Measurements/data required & means of verifying/validating deliverable(s) Financial settlements & means of payment Financial penalties Default terms & conditions Repudiation Acknowledgement
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* may be a time-series
Is this necessary?
Is it always required?
Are there other elements that are important?