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Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.

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At least 19 records

Equity in Transactive Energy Systems

Transactive energy (TE) research primarily focuses on efficient and reliable operation of the electricity grid by using economic or market-based constructs to incorporate significant amounts of responsive, demand-side assets. This research examines the literature to evaluate if the design of TE demonstrations incorporates microeconomic principles of equity and fairness. We also consider the extent to which the design and implementation of TE affects energy inequities, and how these inequities could be addressed in future research with specific equity valuation metrics. The design of TE systems can impact energy equity across several dimensions and we provide recommendations for incorporating microeconomic principles of equity and fairness in TE system architecture as well as metrics for improving equitable outcomes in TE system design, implementation, and performance.

Energy, Transactive Energy, Economics↗

On Anomaly Detection for Transactive Energy Systems with Competitive Market

Two anomaly-detection criteria are proposed for transactive energy systems with competitive markets. Participants of transactive energy systems seek an optimal power allocation through hybrid economic-control methods to facilitate the integration of various types of distributed energy resources to power distribution systems. In transactive energy systems, every participant is assumed to be a rational entity, and consumers have diminishing marginal utility and suppliers have increasing marginal cost. With the first proposed anomaly-detection criterion, the monotonicity of marginal cost and marginal utility are examined. The impact of line flow constraints is also taken into consideration. Then, the second anomaly-detection criterion is proposed for TESs with marginal cost and marginal utility which change faster than a certain rate. The second criterion is more accurate than the first one for TES with marginal cost and marginal utility which change faster than a certain rate, but it requires the knowledge of that rate. Neither criteria requires more data than those necessary to find the optimal power allocation and the market-clear price in a transactive energy system. Therefore, the proposed criteria do not disclose any more data than necessary. As the monotonicity of marginal cost and marginal utility in a TES with competitive markets results in convex objective functions in an optimization problem and strongly convex ones when marginal cost and marginal utility changes faster than a certain rate, the two detection criteria are also applicable to anomaly detection of general convex optimization problems. Simulations are carried out to show the efficacy of the proposed criteria to detect anomalies caused by cyberattacks.

Wang, Peng↗

Blockchains for Transactive Energy Systems: Opportunities, Challenges, and Approaches

The emergence of blockchains and smart contracts has renewed interest in electrical cyberphysical systems, especially transactive energy systems. Here, to address the associated challenges, we present TRANSAX, a blockchain-based transactive energy system that provides an efficient, safe, and privacy-preserving market built on smart contracts.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Privacy-Preserving Transactive Energy System

In this paper, the privacy issue of recently proposed transactive energy systems for electric power systems is studied for the first time. It is identified that the private information of individual market participants is subject to the risk of leakage during their market-based interaction. In order to protect their privacy, a homomorphic encryption-based approach is developed to achieve the privacy preservation with the Paillier encryption scheme. The proposed privacy-perserving design is then demonstrated on a transactive energy system that coordinates and controls residential air conditioners to manage the feeder congestion. The simulation results confirm the effectiveness of the proposed design in protecting the privacy of individual market participants without affecting the overall system performance. Future work on the proposed design is also suggested.

Lu, Yang↗

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↗

Transactive Energy System Deployment Over Insecure Communication Links

Here, in this paper, the privacy and security issues associated with the transactive energy system (TES) deployment over insecure communication links are addressed. In particular, it is ensured that 1) individual agents’ bidding information is kept private throughout hierarchical market-based interactions; and 2) any extraneous data injection attack can be quickly and easily detected. An implementation framework is proposed to enable the cryptography-based enhancement of privacy and security for the deployment of any general hierarchical systems including TESs. Under the proposed framework, a unified cryptography-based approach is developed to achieve both privacy and security simultaneously. Specifically, privacy preservation is realized by an enhanced Paillier encryption scheme, where a block design is proposed to significantly improve computational efficiency. Attack detection is further achieved by an enhanced Paillier digital signature scheme, where a stamp-concatenation mechanism is proposed to enable detection of data replace and reorder attacks. Simulation results verify the effectiveness of the proposed cyber-resilient design for transactive energy systems. Note to Practitioners—This paper is motivated by addressing the issues of cyber resiliency for practically deploying transactive energy system (TES) but it is also applicable to the problem of enhancing the privacy and security for any general hierarchical control systems. TES is an emerging control approach that engages energy suppliers and customers through market operations and uses the price to optimally allocate energy resources. While it has been shown to be promising for power system applications, the underlying market-based interactions raise significant concerns of privacy (data leakage) and security (data tampering). However, existing TES works only focus on the coordination mechanism instead of privacy and security issues. This paper proposes a new cryptography-based TES design for practical deployment. Specifically, to protect privacy, individual supply and demand amounts to be exchanged are all encrypted in a particular way such that the original amounts cannot be inferred from the encrypted amounts, while the desired computation for setting the market clearing price can be carried out over the encrypted amounts, thus generating an encrypted result which, when decrypted, matches that of the same computation over the original amounts. To achieve security, for each exchanged data, its sender generates a particular digital signature which is exchanged together with the data. This enables the receiver to automatically detect the integrity by checking whether a mathematical relationship holds for the pair of data and signature. In our future research, we will investigate more challenging scenarios where some suppliers and customers themselves could be corrupted and purposely submit distorted amounts.

97 MATHEMATICS AND COMPUTING↗

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↗

Transactive energy systems for distributed blackstart and service recovery

Abstract Current transactive controls use marginal benefits and marginal costs to achieve an economic market efficiency during normal grid operations. However, the transactive mechanisms designed for normal economic operations cannot be applied directly for the contingencies because the grid operations during contingencies are often dictated by technical needs rather than purely economic criteria. For instance, one of the key technical requirements for the blackstart is to have at least one blackstart capable resource cleared which cannot be ensured by the transactive mechanism designed for normal economic operations because they work primarily based on the marginal benefit and marginal cost of the participants. This article presents one of the first attempts to develop a transactive mechanism to be used during grid contingencies. A distributed blackstart and service recovery is used as an example contingency to evaluate the performance of the proposed transactive mechanism. The performance of the proposed transactive mechanism is demonstrated for various use cases using a modified IEEE‐123 node test system. The simulation results demonstrated the proof of concept of applying a transactive mechanism to enable distributed blackstart and service recovery by engaging the mix of blackstart capable and non‐capable distributed energy resources.

24 POWER TRANSMISSION AND DISTRIBUTION↗

The Role of Blockchains in Multi-Stakeholder Transactive Energy Systems

Power grids are undergoing major changes due to rapid growth in renewable energy and improvements in battery technology. Prompted by the increasing complexity of power systems, decentralized solutions are emerging that arrange local communities into transactive microgrids. This paper addresses the problem of implementing transactive energy mechanisms in a distributed setting, providing both privacy and safety. Specifically, we design and implement an automated auction and matching system that ensures safety (e.g., satisfaction of line capacity constraints), preserves privacy, and promotes local trade and market efficiency for transactive energy systems. This design problem is challenging because safety, market efficiency, and privacy are competing objectives. We implement our solution as a decentralized trading platform built on blockchain technology and smart contracts. To demonstrate the viability of our platform, we analyze the results of experiments with dozens of embedded devices and energy production and consumption profiles using an actual dataset from the transactive energy domain.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Capacity Markets for Transactive Energy Systems

Capacity markets provide important incentives for resource adequacy in electricity markets and may become more important for providing sufficient revenue and generation capacity with changes to energy market prices driven by increasing levels of zero marginal cost resources. However, current capacity market designs also have important shortfalls that may limit the benefits they can provide to the future grid. Current capacity markets are primarily designed for participation from conventional thermal generators, but markets are evolving with increasing levels of variable renewable energy resources. However, further reforms may be necessary to enable more participation from DERs and demand-side resources. To understand the benefits and shortfalls of current capacity market design, we review the historical reasons electricity markets have needed capacity markets or capacity payments for resource adequacy, and how current capacity market designs may create challenges for incorporating increasing levels of DERs and demand-side resources. We then consider how transactive systems, which allow the coordination of bids and offers for DERs and demand-side resources through a market interaction approach, administered by a Distribution System Operator (DSO), can address traditional resource adequacy problems due to inelastic consumer demand. We also consider the need for a DSO-level capacity market in helping to meet resource adequacy, reliability, and other electricity market objectives. We find that because the missing money in electricity markets is largely driven by incentives to meet resource adequacy goals, and the bulk grid would always supply power to the DSO, that resource adequacy is unlikely to be a determining factor in the need for a DSO-level capacity market. Many current reliability problems could also be addressed by the incorporation of more flexible demand enabled with transactive energy systems. However, other DSO objectives, including resilience, reactive power, voltage control, environmental policies, and energy equity could lead to specific challenges that could be aided by a DSO-level capacity market. We consider the possibility of a DSO-level capacity market in addressing these challenges as well as its potential role in coordinating with the Independent System Operator (ISO) who operates the wholesale market. We conclude with suggestions for future research, including the need to develop analytical models of DSO-level capacity market designs to address these potential objectives and examine their implications for DSOs and consumers.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Communication System Modeling in Transactive Systems

Transactive energy systems almost always rely on communication systems for proper operation but most analysis of transactive systems do not model the communication system. Often these analysis are performed by those without a communication system modeling or simulation background and the difficulty of implementing such models in the analysis environment is prohibitive. Without this model, an understanding of the communication system requirements to successfully implement a transactive energy system can not be comprehended. This report details a capability of auto-generating communication system models from an electrical distribution system model, discusses the need for such models, discusses the method by which these models were developed in this project, and demonstrates the impact on the performance of a load management system when using such models. This capability has been incorporated into Pacific Northwest National Laboratory’s (PNNL) Transactive Energy Simulation Platform (TESP).

24 POWER TRANSMISSION AND DISTRIBUTION↗

Data-Driven Approach to Transactive Energy Systems with Commercial Buildings

A microgrid with solar, storage, and responsive load resources has been implemented and tested on an urban academic campus. Through modeling and simulation, a consensus transactive energy mechanism has been implemented, with each resource participating as a virtual battery. Most owners of large buildings don't have the information and expertise to develop and validate suitable models of their buildings using available tools. To mitigate this adoption barrier, a data-driven building model has been implemented and validated. It uses 5-minute weather data, 3-second revenue meter data, energy audit information, and a load reduction test conducted by the building owner.

Buildings, data-driven modeling, deep learning, en↗

Dataset for: Price Controls for Scarcity Events in Real-Time and Transactive Energy Systems

Real time pricing (RTP) is often promoted as a mechanism to improve the economic efficiency of the electricity system. However, many regulators have been hesitant to adopt RTP due to concerns about exposing customers to extreme price swings. To balance these concerns, this paper proposes a methodology for establishing price controls, based on the supply of demand-side flexibility in the system. As an illustrative example, we measure price responsiveness using an agent-based simulation model that is representative of the ERCOT market. The model is composed of a distribution feeder that has 250 customers with active agents controlling their HVAC systems in response to the historical ERCOT RTP with an artificially added high-price event. These agents are subjected to increasing electricity prices during the event, which we then use to create a supply curve for demand-side resources in our modeled scarcity event. We set potential price caps at points on the supply curve where customers’ have exhausted their flexible capacity. Using historical prices, we examine the systemic costs of these price caps, and present regulatory options for recouping them. Utilities and regulators interested in limiting consumer risk from dynamic pricing can utilize these methods to develop rate structures and encourage conservation. The attached data upload allows for the duplication or modification of the analysis performed in this study.

Kerby, Jessica R↗

Swing Contract-Based Valuation for Distributed Energy Resources in Transactive Energy Systems: A Reinforcement Learning Approach

With the proliferation of distributed energy resources (DERs) and power grids with high fractions of renewable energy, market constructs are evolving to allow DERs to participate in multiple possible markets, at different levels of grid hierarchy. The effective participation of DERs in market environments is aided by swing contract-based pricing mechanisms, whereby DERs have a two-part compensation structure – one for their reservation/commitment and another for performancedriven ex-post payment for their actual mobilization during dispatch. In this paper, we propose a reinforcement learningbased (Q-learning) approach that allows a rational DER agent to select the market it wants to participate in within a composite market environment where individual markets are coordinated by possibly different actors. The proposed Q-learning framework aids DERs in their self-valuation by implicitly maximizing their own payoff through market participation, assuming a swing contract-based compensation structure. We complement our work through simulation-based investigations where factors affecting the DER decision making process, such as parametric uncertainties in market (and grid) environments, are studied.

Naqvi, Syed Ahsan Raza↗

Visual Modeling for Complex System Valuation: Implementation Guidance

Within the Transactive Systems Program (TSP) at Pacific Northwest National Laboratory (PNNL) the need to incorporate a valuation analysis design early within the research process of transactive energy systems led to development of a valuation methodology. This methodology allows the modeling of economic exchanges within a complex system and supports the evaluation of individual stakeholder economic outcomes in addition to systemwide costs and benefits. The use of visual modeling practices enables the research team to reach common understanding and agreement on the analysis design within the complex system. While this methodology was developed for the valuation of transactive energy systems, it can be applied to any complex system where a granular economic analysis is desired. It allows for the inclusion of equity analyses and ties individual activities and microeconomic outcomes with the systemwide macroeconomic impacts. This document serves as implementation guidance for analysts planning to deploy the methodology within a research study. The appendixes provide specific guidance on how this methodology is deployed within the TSP at PNNL for analysts seeking guidance for deployment within that context.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Transactive Campus Energy Systems: An R&D Testbed for Renewalables Integration, Efficiency, and Grid Services - CRADA 356 (Abstract)

Under this Cooperative Research and Development Agreement (CRADA), the project team consisting of Pacific Northwest National Laboratory (PNNL), acting on behalf of the U.S. Department of Energy, and the University of Washington (UW) and Washington State University (WSU), acting under the purview of the State of Washington’s Department of Commerce (the “industrial” partner), will connect the PNNL, UW, and WSU campuses to form a multi-campus test bed for transaction-based energy management – transactive – solutions (see sidebar). Building on the foundational transactive system established by the Pacific Northwest Smart Grid Demonstration (PNWSGD), it is proposing to construct the test bed as both a regional flexibility resource and as a platform for R&D on buildings/grid integration and information-based energy efficiency.

24 POWER TRANSMISSION AND DISTRIBUTION↗