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DOE OSTI2016

The View from the Top of the Mountain: Building a Community of Practice with the GridWise Transactive Energy Framework

The topic of “transactive energy” has received growing attention over the past eighteen months. It has been a part, for example, of the NY Reforming the Energy Vision discussions and the topic of activities such as the National Institute of Standards Transactive Energy Challenge. The growing discussion stems from the realization that new approaches are needed to efficiently and reliably integrate growing numbers of distributed energy resources. In anticipation of the applicability of transactive energy systems to emerging challenges in Grid integration, the GridWise® Architecture Council (GWAC) began to build a community of practice in the area of transactive energy systems. Starting with a workshop on the topic of “transactive energy” in May 2011, the Council brought together about a dozen interested researchers and practitioners from utilities, vendors, labs and academia to compare their approaches and experience in order to create common definitions and understanding within this topical area. This was followed in March 2012 with a second workshop during which about twice as many attendees continued the discussion. At this workshop the need for both a roadmap and a document documenting the foundations of transactive energy, common vocabulary and other definitional aspects was recognized. These two workshops led to the Council organizing the First International Conference and Workshop on Transactive Energy which took place May 23 – 24, 2013 in Portland, Oregon. The Council has continued this work with additional topical workshops, the Second International Conference and Workshop on Transactive Energy held in December 2014, and is currently organizing the Third International Conference and Workshop on Transactive Energy Systems to be held in May 2016. This article provides a summary of the Council’s work to build the community of practice through creation of a Transactive Energy Framework document and related activities. In addition to seeing transactive energy discussions on the agenda for many conferences there are also group activities relating to transactive energy being coordinated by both NIST and SGIP with which GWAC is also involved. The NIST work aims to develop and enhance modeling and simulation tools and integration into modeling and simulation platforms for Transactive Energy evaluation, as well as demonstrate how different transactive approaches may be used to improve reliability and efficiency of the electric grid. This will be accomplished through development of a set of scenarios that can serve as ongoing reference points for modeling and simulation. It is also an example of helping to develop a Transactive Energy community. The ongoing Transactive Energy Coordination Group formed by SGIP reviews the progress and directions of transactive energy activities in related parts of the SGIP and collaborating organizations such as GWAC. One of its activities is assembling a core set of transactive energy use cases as representative of the transactive energy interface requirements. This will enable assessment of interoperability requirements for transactive energy applications and an analysis of standards coverage, gaps, and future needs.

Tranasactive Energy↗

DOE OSTI2013

GridWise Transactive Energy Framework (DRAFT Version)

Over the past decade, the use of demand response and other flexible distributed resources for market efficiency and grid reliability has grown dramatically. Federal and state policy objectives point to an important role for customers’ loads, generation and storage in the management of an increasingly unpredictable power system. As we consider the need to substantially scale the use of flexible distributed energy resources, there has been growing attention to the need to address not only the economics, but also the control system implications to ensure grid reliability. This has led to a focus on an area of activity called “Transactive Energy.” Transactive Energy refers to the combination of economic and control techniques to improve grid reliability and efficiency. These techniques may also be used to optimize operations within a customer’s facility. The Department of Energy has supported the GridWise® Architecture Council (“the Council”) in developing a conceptual framework that can be used in developing architectures, and designing solutions related to transactive energy. The goal of this effort is to encourage and facilitate collaboration among the many stakeholders involved in the transformation of the power system and thereby advance the practical implementation of transactive energy.

GridWise↗

DOE OSTI2020

Modeling of Marginal Cost for PV Inverter Ancillary Services Considering Inverter Aging under Transactive Energy Framework

PV inverters can provide ancillary services while providing active power. Transactive energy system (TES) incentivizes PV inverter to provide ancillary services and compensates for the cost of additional power losses due to additional reactive power production. However, providing ancillary services can shorten the lifetime of the PV inverter since additional reactive power increases the thermal stress of the PV inverter. This paper theoretically derives the lifetime shortening effect of a PV inverter when providing ancillary services. Based on the lifetime estimation, an improved marginal cost curve for the PV inverter ancillary services is derived. The improved marginal cost quantitively describe the willingness of the PV inverter to provide ancillary services by the given active power production and the ambient temperature. The proposed model is validated by a simulation case study.

Liu, Yunting↗

DOE OSTI2013

Creating a Transactive Energy Framework: Improving Reliability and Efficiency

The use of demand response and other flexible distributed resources over the past decade for market efficiency and grid reliability has grown dramatically. Federal and state policy objectives point to an important role for customer loads, generation and storage in the management of an increasingly unpredictable power system. As we consider the need to substantially scale the use of flexible distributed energy resources, there has been growing attention to the need to address not only the economics, but also the control system implications to ensure grid reliability. This has led to a focus on an area of activity called “Transactive Energy.” Transactive Energy refers to the combination of economic and control techniques that improve grid reliability and efficiency. These techniques may also be used to optimize operations within a customer’s facility. The Department of Energy has supported the GridWise® Architecture Council (“the Council”) to develop a framework to provide opportunity for collaboration among the many stakeholders involved in the transformation of the power system.

GWAC↗

DOE OSTI2019

GridWise Transactive Energy Framework (V.1.1)

Over the past two decades, the use of demand response and other flexible distributed resources for electricity market efficiency and grid reliability has grown dramatically. Federal and state policy objectives point to an important role for customers’ loads, generation, and storage in the management of an increasingly unpredictable power system. As we consider the need to substantially scale the use of flexible distributed energy resources, growing attention has been devoted to the need to address not only the economics of the electricity grid, but also the control system implications, to address grid reliability. This has led to a focus on an area of activity called “Transactive Energy.” Transactive energy (TE) refers to the use of a combination of economic and control techniques to improve grid reliability and efficiency. These techniques may also be used to optimize operations within a customer’s facility. The U.S. Department of Energy has supported the GridWise ® Architecture Council (“the Council”) in developing a conceptual framework for developing architectures and designing solutions related to TE. The goal of this effort is to encourage and facilitate collaboration among the many stakeholders involved in the transformation of the power system and thereby advance the practical implementation of TE.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2014

Transaction-Based Building Controls Framework, Volume 1: Reference Guide

This document proposes a framework concept to achieve the objectives of raising buildings’ efficiency and energy savings potential benefitting building owners and operators. We call it a transaction-based framework, wherein mutually-beneficial and cost-effective market-based transactions can be enabled between multiple players across different domains. Transaction-based building controls are one part of the transactional energy framework. While these controls realize benefits by enabling automatic, market-based intra-building efficiency optimizations, the transactional energy framework provides similar benefits using the same market -based structure, yet on a larger scale and beyond just buildings, to the society at large.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

DSO+T: Transactive Energy Coordination Framework (DSO+T Study: Volume 3)

This report describes a transactive energy coordination scheme designed to integrate into existing day-ahead and real-time wholesale energy markets. This scheme was evaluated in the Distribution System Operator with Transactive (DSO+T) study to assess the engineering and economic performance of the transactive energy coordination of a large-scale deployment of distributed energy resources (DER). Transactive agents were developed for a range of DERs (heating, ventilation, and air conditioning units, water heaters, batteries, and electric vehicles) that optimize flexibility over a 48-hour horizon and adjust their strategy in response to changes in real-time prices. A transactive energy coordination scheme, executed by a DSO retail market operator, aggregates these DER bids from participating customers and clears them against a DSO supply curve using a double auction market mechanism. The process of constructing the price-quantity DSO supply curve includes distribution-level transportation constraints (for example, substation congestion limits) and forecast locational marginal price of the DSO’s connected transmission node. The resulting day-ahead and real-time quantities are then bid into a competitive wholesale market operated by an independent system operator. This report also details additional capabilities for proper marketplace simulation such as wholesale price, weather, and load forecasting. The report concludes with a discussion of lessons learned and key design features required to ensure successful operation.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2019

Enhancing Distribution System Resiliency through a Novel Transactive Energy Systems Framework

Restoration of end-use loads during bulk transmission system outages is a key challenge for electric utilities. During those outages, utilities often do not have enough resources to fully restore the end-use loads. Additionally, not all available switching options are feasible due to voltage and load limits. Incentivizing non-utility flexible assets to provide their flexibility during resiliency events is a potential solution to improve resiliency. This paper presents a new transactive energy system framework (TESF) to incentivize distributed energy resources (DERs) to provide reactive power for supporting the self-healing functions of distribution management system (DMS). TESF engages non-utility DERs during resiliency events by incentivizing them through transactive signals computed using marginal cost of producing reactive power and marginal benefit of additional switching operations. TESF calculates additional switching options, which DMS then leverages to identify new optimal switching plans to restore additional loads. Test system consisting of multiple IEEE-13 node distribution feeders is used to demonstrate the performance of the proposed method. For the given system configuration and use-case, TESF results in 24.82 % additional load restoration and one additional switching operation.

Distribution system, reconfiguration, resiliency, ↗

DOE OSTI2025

Digital Real-Time Simulation and Power Quality Analysis of a Hydrogen-Generating Nuclear-Renewable Integrated Energy System

This paper investigates the challenges and solutions associated with integrating a hydrogen-generating nuclear-renewable integrated energy system (NR-IES) under a transactive energy framework. The proposed system directs excess nuclear power to hydrogen production during periods of low grid demand while utilizing renewables to maintain grid stability. Using digital real-time simulation (DRTS) in the Typhoon HIL 404 model, the dynamic interactions between nuclear power plants, electrolyzers, and power grids are analyzed to mitigate issues such as harmonic distortion, power quality degradation, and low power factor caused by large non-linear loads. A three-phase power conversion system is modeled using the Typhoon HIL 404 model and includes a generator, a variable load, an electrolyzer, and power filters. Active harmonic filters (AHFs) and hybrid active power filters (HAPFs) are implemented to address harmonic mitigation and reactive power compensation. The results reveal that the HAPF topology effectively balances cost efficiency and performance and significantly reduces active filter current requirements compared to AHF-only systems. During maximum electrolyzer operation at 4 MW, the grid frequency dropped below 59.3 Hz without filtering; however, the implementation of power filters successfully restored the frequency to 59.9 Hz, demonstrating its effectiveness in maintaining grid stability. Future work will focus on integrating a deep reinforcement learning (DRL) framework with real-time simulation and optimizing real-time power dispatch, thus enabling a scalable, efficient NR-IES for sustainable energy markets.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

DOE OSTI2021

Blockchain Smart Contract Reference Framework and Program Logic Architecture for Transactive Energy Systems

This paper proposes a reference framework for a transactive energy market based on blockchain. The framework was designed based on the engineering requirements of a distribution-scale market; including participant needs, expected market transactions, and the cybersecurity constructs required to support a fair, secure and efficient market operation. It leverages the existing blockchain primitives to provide clear value propositions to the transactive market, including identity management (access control), data security (integrity), resiliency (decentralization, scalability and performance). The validity of the proposed framework is demonstrated using a real-time 5-min double-auction market. The results highlight its benefits while providing strong validation of applicability to blockchain within transactive energy systems.

Gourisetti, Sri Nikhil Gupta↗

DOE OSTI2021

Co-simulation of transactive energy markets: A framework for market testing and evaluation

The proliferation of distributed energy resources (DER)—and the ability to intelligently control these assets—is re-defining the electrical distribution system. As the number of controllable devices rapidly expands, grid operators must determine how to incorporate these assets while delivering reliable, equitable, and affordable electricity. One possible approach is to establish distribution-level electricity markets and allow devices/aggregations of devices to participate in price establishment. While this approach purports some of the same benefits as the highly successful wholesale electricity markets (i.e., open competition, efficient price discovery, reduced communication overhead), this needs to be researched and quantified via an analysis platform that models distribution-level markets at the appropriate fidelity. Specifically, the simultaneous evaluation of market performance, DER performance, DER bidding approaches, and distribution feeder power quality requires modeling that spans multiple technical areas. Co-simulation has emerged as a powerful tool in addressing this type of problem, where outputs depend on a range of underlying areas of expertise and associated models. In this paper we describe a solution, as implemented in the HELICS co-simulation platform, where we include (1) high fidelity house models, (2) intelligent bidding agents, (3) a modular market integration/design, and (4) a distribution feeder model. We then present a case study where we test two different market designs: (1) a pseudo-wholesale double-blind auction, and (2) an asynchronous matching market. In this work, the markets are run under two DER penetration levels and economic results are compared to full retail net energy metering and avoided cost net metering scenarios that bookend current approaches to remuneration of DER participation. We show the potential for transactive markets to provide increased value for most customers relative to net metering (and all customers relative to avoided cost scenarios) while decreasing costs for the utility.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2016

Architectural Basis for Highly Distributed Transactive Power Grids: Frameworks, Networks, and Grid Codes

This paper provides an architectural framework for highly distributed Transactive Energy grids. This framework guides the engineering of transactive distribution systems, informs the necessary interoperability standards, and fills in the gap in the ability of electric distribution utilities to write the Grid Codes that define how prosumer and third party devices plug into such a grid. With this architecture, a major hurdle to Transactive Grid deployment is resolved.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2016

Advanced Networking Paradigms for High-DER Distribution Grids (V.3.0)

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2021

Optimal Transactive Energy Trading of Electric Vehicle Charging Stations With On-Site PV Generation in Constrained Power Distribution Networks

This paper presents a two-level transactive energy market framework, that enables energy trading among electric vehicle charging stations (EVCSs). At the lower level, the discharging capability of EVs and on-site PV generation are leveraged by individual EVCS for participating in the transactive trading with their peers. Once the lower-level trading is completed, EVCSs trade energy at the upper level through the power grid network managed by the distribution system operator (DSO). The upper-level market is cleared while satisfying the power distribution network constraints. A cooperative game-based model is proposed to model the energy trading among EVCSs. To this end, the asymmetric Nash bargaining method is applied to allocate the grand coalition's payoff to each EVCS at the upper-level market, while a weighted proportional allocation method is used to allocate individual EVCS's payoff to its respective EVs at the lower-level market. In this work, the upper-level market formulation is further decomposed into two subproblems representing an energy scheduling and trading subproblem which maximizes EVCS payoffs, and a bargaining subproblem which allocates EVCS payoffs. The effectiveness of the proposed framework for incentivizing transactive trades among EVs and EVCSs is validated in case studies.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2020

Transactive Energy Systems: The Market-based Coordination of Distributed Energy Resources

This paper synthesizes a unifying framework that captures a large class of transactive energy systems studied in the literature. The framework consists of four key elements: agent preferences, control decisions, information structure, and solution concept. Among them, agent preference specifies the preferred outcome by each agent and models the conflict of interest in decision making. Control decision specifies the set of decisions for each agent to maximize its payoff. Information structure describes the information available to each agent before it makes a decision. Solution concept encodes the rationality assumptions of each agent in the system. These elements are important in identifying and distinguishing different transactive energy systems. In this paper, we use them to analyze a number of important ones, including the competitive equilibrium, Stackelberg game, reverse Stackelberg game, and mechanism design. Each class of these problems is formulated as a special case of the proposed transactive energy systems. Their connections and differences are discussed. Available tools and results for each category of problems are surveyed.

Li, Sen↗

DOE OSTI2019

Stability of Transactive Energy Market-Based Power Distribution System Under Data Integrity Attack

Future smart power distribution system with multiple active consumers and aggregators exchanging real-time electricity pricing and electricity consumption information over a communication network is prone to cyberattack. The goal of this paper is to understand the impact of attacks on pricing/load signals on the physical grid within a transactive energy market framework. First, this paper models the interaction between real-time electricity price and total energy demand in the form of a discrete time nonlinear autonomous dynamical system. Second, equilibrium electricity price and energy demand associated with this coupled dynamical system is derived and conditions for bounded input bounded output (BIBO) stability are identified. Third, a BIBO stable algorithm to design real-time electricity pricing scheme from a techno-economic perspective is developed. Finally, the impact of various levels of false data injection (FDI) attack on price of electricity, demand, and distribution system voltage is investigated. The proposed model is analyzed using simulations on the IEEE 69-bus test system and the impact of FDI attack on both electricity price/demand and distribution grid voltage is quantified. In conclusion, this paper shows that impact of FDI attack on electricity prices is more severe than an attack on electricity demand.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2018

Resilience Metric Formulation Considering Transactive Systems

To help understand the effects of risk and uncertainty on power system operation, particularly during deleterious events, a model for resilience that defines four specific phases of resilience and associated activity was adopted, refined, and contextualized. Given this model, a comparison is made to the well-established field in power systems of reliability and an integrated framework is developed. The role of transactive energy systems in resilience activity is discussed and the strong alignment between properties of transactive energy systems and resilient systems is made. Finally, a scenario-based framework for risk metrics is proposed; the proposed framework allows for the direct comparison in performance between existing (business-as-usual) and transactive energy systems in improving resilience.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2020

Framework for Large-scale Implementation of Wholesale-Retail Transactive Control Mechanism

Transactive energy is a control technique that uses market mechanisms to achieve desired control objectives. Several simulation studies and field demonstrations were carried out in recent years, but all focused on small scale systems and purpose-built simplified models which are not always capable of pointing out all the advantages and shortcomings of transac- tive energy methods. This work describes a co-simulation framework built on a hierarchical control architecture that allows for conducting studies of the impacts of a very large-scale deployment of transactive energy. The hierarchical transactive control architecture adopted in this work helps with alleviating computation and communication burden to facilitate a more effective large scale real-time market operation among device level resources and the system level operators. The co-simulation framework is evaluated an integrated power sys- tem model of unprecedented scale composed of the Western Electricity Coordination Council (WECC) transmission system with tens of thousands of distribution systems deployed with flexible device-level distributed energy resources (DERs) using off-the-shelf simulators.

Transactive energy, market-based controls, DER int↗