When Will Transactive Energy Be Grid Ready?

Transactive energy: not ready for peak load

Energy Biz, January 13, 2015

Over the last decade and a half, federal and state demands for a more reliable and economically responsive electrical grid have grown immensely. Possible solutions to this demand include transactive energy (TE), the combination of economic and control techniques intended to improve grid reliability and efficiency. TE is supposed to take the concept of distributed energy resources (DER) to the next level. If all goes according to plan, it could supplant the current power transmission model by the year 2020.

For some within the electrical industry, enthusiasm for TE is broad. For example, PhD energy researchers Stephen Barrager and Ed Cazalet write in the preface to their book Transactive Energy: A Sustainable Business and Regulatory Model for Electricity, “Transactive Energy scales well. It can coordinate decisions across the full spectrum of size and technology. It works equally well for central power-plant planning and for smart home-appliance operation.”

However, an anecdotal survey of other experts in the energy market on the prospects for TE reveal that while the concept has helped focus attention on the need to upgrade the power transmission grid for variable power sources and transaction systems for all electrical resources, TE is far from being ready for implementation on a operational basis.

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