Transactive Energy (TE) is an energy distribution system which allows energy sourced from multiple distributed energy resources (DERs) to be integrated with the grid system through the use innovative smart grid and smart energy technologies.
According to the SGIP, the objectives of a TE system is to integrate DERs on grid networks to meet grid/customer demands and at the same time, ensure the coordination of integrated resources to improve system efficiency.
The Pacific North-West National Laboratory defines a TE system as a method for monetising values and incentivizing grid assets to respond.
TE systems can be centralised or distributed, involves transacting parties using automated applications, interacts across multiple time scales and negotiates objectives across multiple parties to balance the whole system while maintaining the stability of the grid.
The paper Transactive Energy Application Landscape Scenarios defines TE and discusses the process of integrating the energy sourced from DERs with grid networks.
The paper helps stakeholders in the energy and clean energy sectors to understand the function and importance of the TE business model to the energy sector.
SGIP also highlights stakeholders in different smart grid landscapes including aggregators, generators, customer facilities and regional transmission and distribution networks operators, and their roles and participation in development and operation of TE systems.
According to the SGIP, the paper aims to help:
The paper provides an analysis of TE scenarios including:
Image credit: www.poweranalytics.com.