Grid-Interactive Efficient Buildings: A Review of Transactive Energy

 As our Nation’s electrical power system transitions to meet 100% decarbonization goals, the coordination between the Front of the Meter and Behind the Meter assets must be tightly coupled. Many customers currently have devices on-premises that can provide grid services, e.g., energy generation, capacity reduction, volt-var, and frequency response; however, currently under the legacy, monopoly Utility business model, individuals providing such services do not equitably share in cost-recovery for providing grid services.

A new business model, known as Transactive Energy (TE), created under NIST’s guidance, and released in 2011. TE provides a framework that shares the cost-of-service recovery among all stakeholders. This sharing creates a financial incentive to speed the adoption of clean-energy devices, thus reaching decarbonization goals faster, in a sustainable way.

About Energy Profit LLC — Energy Profit (EP) provides technical design and consulting services to utilities and organizations looking to enter or extend their focus on the Transactive Energy solution. EP’s founder, Stephen MacDonald, is a cross-functional Energy Systems Engineer practicing in the following advanced technology spaces: Transactive Energy Design (TE), Micro Grids (MG), Virtual Power Plants (VPP), Electric Vehicles (EV), Flexible Loads (FL), Distribution Grid Automation (DA).