transactive energy webinar

Accelerating Grid Modernization

More information available on

SGIP.org and GridWiseAC.org

Transactive Energy:

A Moderated Discussion

July 24, 2014




INTRODUCTION

Steve Widergren, PNNL

SGIP Board Member, Vice Chair of Technical Committee

July 24, 2014 Transactive Energy: A Moderated Discussion

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Smart Grid Interoperability Panel

orchestrates the work

behind power grid

modernization





• Optimizes resources and time

• Enhances choices of interoperable products

• Helps build technology roadmaps

• Simplifies decision making

SGIP Reduces Risks and Costs

SGIP is a collaborative, transparent, and trusted forum to share standards

information and practical, hands-on knowledge about deployments from

industry experts.

SGIP is a collaborative, transparent, and trusted forum to share standards

information and practical, hands-on knowledge about deployments from

industry experts.

July 24, 2014 July 24, 2014 Transactive Energy: A Moderated Discussion

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GridWise Architecture Council

• Who– Respected experts

– Volunteers

– Cross-sector organizations

• What– Principles of interaction

– Interoperability

The Electricity Community

AdvocatingFacilitating

Eye on the Future


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Webinar Agenda

• Understanding Transactive Ron MeltonEnergy (TE)

• Regulatory and Industry Ward CampPerspective on TE

• Facility Perspective on TE David Holmberg

• ISO/RTO Perspective on TE David Forfia

• Q&A All Panelists

• Closing Steve Widergren


This meeting, and all SGIP activities, are governed by SGIP By-laws and policies - Intellectual Property Rights Policy and Antitrust Policy.

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http://members.sgip.org/apps/group_public/document.php?document_id=4171&wg_abbrev=sgip-board

http://members.sgip.org/apps/group_public/document.php?document_id=2362&wg_abbrev=sgip-board




OVERVIEW ON TRANSACTIVE

ENERGY

Ron Melton, Administrator, GridWise Architecture Council





Building on Smart Grid

Interoperability

• Interoperable Smart Grid deployments enable

– Information flow and availability

– Ability to engage intelligent devices

• The “smart” in Smart Grid comes from creating applications that do something with the information and devices

GWAC focus on framing the problems

associated with transactive energy build on the Council’s earlier interoperability focus


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Updated Definition of Transactive Energy

“A set of economic and control mechanisms that allows the

dynamic balance of supply and demand across the entire electrical

infrastructure using value as a key operational parameter.”

And ten attributes:

Architecture Extent

Transactions Transactive parties

Interoperability Temporal variability

Value discovery mechanism Assignment of value

Alignment of objectives Stability


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Transactive Energy Principles (V1.0)

Highly automated coordinated self-optimization

Transactive energy systems should provide for non-discriminatory participation by qualified participants

Transacting parties are accountable for standards of performance

Transactive energy systems should be observable and auditable at interfaces

Maintain system reliability and control while enabling optimal integration of renewable and distributed energy resources

Transactive energy systems should be scalable, adaptable and extensible across a number of devices, participants and geographic extent

Principles: High-level requirements for TE systems that provide an additional point of reference for communicating with stakeholders and identifying common ground within the transactive energy community.


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Motivation for Transactive Energy

The changing nature of the electric power system:• Increased penetration

of distributed energy resources

• Increased variability

• Intelligent devices –internet of things becoming our reality

TE responds to the need to manage such a system


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Transactive Energy

Transparent energy prices enable customers of all sizes to join traditional providers in producing, buying, and selling electricity – using automated control – to drive a reliable and cost-efficient electricity system.


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Why It’s Important:


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How It

Works:


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How It Works:


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How It Works:


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How It Works:


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How It Works:


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The Benefit


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The Benefit


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The Benefit


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The Benefit


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The Benefit


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In Conclusion Transactive energy has

been a driver for GWAC’s

efforts from inception

GWAC has been working

to build a transactive

energy community


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Next StepsUpdate and

expand TE

Framework

Continued

outreach to

regulators and

policy makers

Continue to build

the community


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REGULATORY & INDUSTRY

PERSPECTIVE ON

TRANSACTIVE ENERGY

H. Ward Camp, Landis+Gyr,SGIP Business & Policy DEWG Co-Chair, GWAC Member





Are SGIP and GWAC Proposing TE?

• SGIP and GWAC are not advocacy organizations

• We are noting trends and offering solutions





Why is this important to Regulators?• TE is already happening

– DR – Demand Response– EV – Electric Vehicles– ZNE Buildings– DER – Distributed Energy Resources– µGrid – Microgrids– RPS – Renewable Portfolio Standards

• It is foreseeable that if the trends continue -- the scope and scale of energy transactions will dramatically increase, while there will be a contemporaneous decrease in latency of communications, all of which could cause major $ uplifts to the grid and the potential of large stranded costs.





Why is this Important to the

Industry?

• If you are a buyer you need to be aware of where TE is heading and the rate of change impacting the grid and therefore your capexinvestments

• If you are a vendor you need to keep abreast of new areas of interaction (use cases) and new areas of interoperability (standards and protocols)





Now? Or Later?

• DER, Microgrids, EV, Renewables and DR all increasing.

• Changes at the individual premise all the way to the Wholesale (ISO) level and all points in between are occurring.

• Need for greater scale, need for lower latency, need for higher granularity all increasing.

• What is the cost to anticipate TE if not all of it comes to pass versus ignoring the possibility?

• If we don’t address these seemingly incremental changes before we get to the tipping point, we will be the frog in the pot.


http://upload.wikimedia.org/wikipedia/commons/4/47/Frog_and_saucepan.jpg

http://upload.wikimedia.org/wikipedia/commons/4/47/Frog_and_saucepan.jpg




FACILITY PERSPECTIVE ON

TRANSACTIVE ENERGY

David Holmberg, SGIP Building-to-Grid DEWG Chair





Outline

• B2G perspective: cross-domain interactions, complexity, simple interface

• DR conceptual model

• Interaction framework, 201P ESI-EM, EI/OpenADR

• Analysis of the important solution elements for TE




The Concept of Separate Domains

• Different info models, owners, protocols, business drivers, systems, values…




A View on Customer Domain Complexity

(from NIST Framework 1.0)




Demand

Response

Conceptual

Model




Framework for Engaging Customer

DER/DR

MeterCustomer Internal

Systems: Loads, Generation, Storage

Grid Domains: Energy Service

Providers, Markets

Meter Validation

OpenADR, Energy Interoperation

• Decoupled interaction• Internal loads, generation,

storage are not visible to external parties.




What are the Solution Elements of a

Successful TE Interface?

• Equitable incentive/compensation mechanism • Scalable, transparent, secure• Exposes the value of energy products (energy, ancillary

services, transport) at each actor location (meter)• 24/7 signals to allow realizing value at all times for

maximum efficiency and return on investment.• Forward indication of value (transactable)• Standards-based interactions/transactions • Local intelligence and control of resources• Provide path for system evolution (technology and

policy)




Summarize

• A standard interface with business level interactions (prices, DR events, transactions) will enable customers to leverage the resources in the facility space to serve the grid 24/7, up and down, for capacity, ancillary services and other services.

• Value is made clear and realizable via financial transactions.

• Forward and real-time transactions are important to optimize efficiency and reliability.




ISO/RTO COUNCIL

TRANSACTIVE ENERGY

FRAMEWORK PERSPECTIVES

David Forfia, ERCOT, SGIP Board Member, GWAC Member





ERCOT OverviewRESPONSIBILITIES

The Texas Legislature restructured the Texas electric market in 1999 by unbundling the investor-owned utilities and creating retail customer choice in those areas, and assigned ERCOT four primary responsibilities:

• System Reliability - Ensure reliability and adequacy of regional electric network

• Open Access to Transmission - Ensure nondiscriminatory access to transmission/distribution systems for all buyers and sellers

• Competitive Retail Market - Facilitate retail registration and switching

• Competitive Wholesale Market - Ensure accurate accounting for electricity production and delivery among the generators and wholesale buyers and sellers in the region

QUICK FACTS

• 75% of Texas land• 85% of Texas load• More than 40,500 miles of transmission lines• 550+ generation units• 68,305 MW peak demand (set August 3, 2011)

ERCOT connections to other grids are limited to direct current (DC) ties, which

allow control over flow of electricity


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ERCOT as Independent System

Operator

ERCOT IS ONE OF 9 NORTH AMERICAN ISOS/RTOS

• ISOs/RTOs serve 66%

of U.S. population and

more than 50% of

Canada

• Goal: Reliability,

Efficiency,

Transparency &

Impartiality


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Existing Markets are “Transactive”

A set of economic and control mechanisms that allows the dynamic balance of supply and demand across the entire electrical infrastructure using value as a key operational parameter.

• Key Points:– The infrastructure investments to administer the markets

were large and were made across time

– The Security of the current markets is guaranteed through continued funding of the administration and maintenance of the market infrastructure


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• Wholesale Resource requirements are now as small as 100KW from multiple sites

– Initial requirements required 10MW at a single site

– Continued drive for lower limits

• Pricing structure are implemented that integrate retail and wholesale pricing

– Price Responsive Demand

– Asset Related Demand

Retail & Wholesale Markets are

Evolving


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Markets are Becoming Broader and

IntegratedCross-Market Coordination

• Congestion charges assigned on the actual power path

• Market-to-Market coordination to minimize congestion management

• Interface pricing revisions to improve pricing signals at the interface points between markets

• Inter-regional transaction coordination

Inter-Regional Planning

• Eastern Interconnection Planning Collaborative (EIPC)

• 26 planning authorities covering 40 states & 2 Canadian Provinces

• Assessed the resource needs in the aggregate for the region

48 July 24, 2014 Transactive Energy: A Moderated Discussion

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The 2020 timeframe for wide scale adoption is unrealistic

Timeframe

NIST Smart Grid Framework 3.0


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• Changing Policy requires time– Regulatory changes must be adopted– Market policy & guidelines developed– Physical elements must be implemented

• Information Systems• Physical changes to the electric distribution

network at the equipment level

• Today’s environment has been evolutional– Stakeholder processes exists for change

Timeframe

A fully functional demand side of the electricity market means that end use customers or their designated intermediaries will have the ability to see real time energy price signals in real time, will have the ability to react to real time prices in real time, and will have the ability to receive the direct benefits or costs of changes in real time energy use.

The complete transition to a fully functional demand side will require explicit agreement and coordination among the Commission, state public utility commissions and ISOs/RTOs


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Drivers for Transactive Energy


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Maker (Resources)Mover (Operators)User (Consumers)

Regulatory & Policy Goals

Reliability

Efficiency

Affordability

Sustainability

July 24, 2014

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QUESTIONS?

July 24, 2014 Transactive Energy: A Moderated DiscussionJuly 24, 2014




Closing

• Transactive Energy approaches engage electric system resources to provide greater flexibility to operations in an equitable and scalable manner

• Transactive Energy topics are being pursued in several areas within the SGIP, GWAC, and other organizations

• SGIP is coordinating their efforts with GWAC and reaching out to others

• We encourage you to be part of the dialogue


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Resources• For more on the GWAC Transactive Energy Framework see,

– http://www.gridwiseac.org/about/transactive_energy.aspx

• For more on the SGIP Energy Services Interface Whitepaper see,– http://collaborate.nist.gov/twiki-sggrid/bin/view/SmartGrid/EnergyServicesInterface


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http://www.gridwiseac.org/about/transactive_energy.aspx

http://collaborate.nist.gov/twiki-sggrid/bin/view/SmartGrid/EnergyServicesInterface




SGIP Reminders

• September 15-18: Annual Conference and Fall Members Meeting in Nashville

• Webinars & Publications on SGIP.org under “Information Knowledge Base”

• Stay in Touch– Twitter: @SGIPNews

– LinkedIn Group: https://www.linkedin.com/groups/Smart-Grid-Interoperability-Panel-SGIP-4145498

– Sign up for SGIP Newsletter, The Conductor


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THANK YOU FOR YOUR PARTICIPATION

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