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
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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
Dmitri MendeleevElements are grouped according to their properties
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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
TE Characterization Groups• Principles
• Guiding Architectural Principles
• Attributes
• Layers
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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
The Periodic Table of TE
Principles LayersAttributesGuiding
Architectural
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
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
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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
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
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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
Layers of TE
Cyber-Physical
Infrastructure
Policy & Market
Design
Conceptual
Architecture
Guidelines
Business Models
& Value
Realization
4 Layers
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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
RC
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VD
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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
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SO
OA
ND
AC SS
ST
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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