Opening Up Transactive Systems: Introducing TESS and Specification in a Field Deployment

Abstract

Transactive energy systems (TS) use automated device bidding to access (residential) demand flexibility and coordinate supply and demand on the distribution system level through market processes. In this work, we present TESS, a modularized platform for the implementation of TS, which enables the deployment of adjusted market mechanisms, economic bidding, and the potential entry of third parties. TESS thereby opens up current integrated closed-system TS, allows for the better adaptation of TS to power systems with high shares of renewable energies, and lays the foundations for a smart grid with a variety of stakeholders. Furthermore, despite positive experiences in various pilot projects, one hurdle in introducing TS is their integration with existing tariff structures and (legal) requirements. In this paper, we therefore describe TESS as we have modified it for a field implementation within the service territory of Holy Cross Energy in Colorado. Importantly, our specification addresses challenges of implementing TS in existing electric retail systems, for instance, the design of bidding strategies when a (non-transactive) tariff system is already in place. We conclude with a general discussion of the challenges associated with “brownfield” implementation of TS, such as incentive problems of baseline approaches or long-term efficiency.

Transactive energy management systems: Mathematical models and formulations

“…Consumers may be motivated to be involved in the local energy market (LEM) because of factors such as financial advantages, chosen comfort levels, and preferred energy sources. In distribution‐level TE systems, small‐ to medium‐sized DERs [9], smart buildings [10], MGs [11], and multi‐carrier EHs [12] can trade their flexibility and energy among themselves or with the LEM based on predefined contracts and market rules. A distribution system operator (DSO) is a non‐profit independent entity responsible for managing distribution‐level TE systems.…”

Special Issue “Innovation, Policy, and Regulation in Electricity Markets”

“…Arlt et al [4] discusses an important field experiment around transactive energy. Transactive energy is where individual devices bid to consume more or less according to the market price, aka: 'pricing to devices'.…”