IEEE Electrification Magazine - December 2016 - 44

TecHNOLOGY LeAderS

needs of the grid but because consumers will demand better control of
their devices and controls that are
easier to use. Transactive energy features might be embedded in consumer products or in an energy
management agent (as specified, for
example, in the international standard
for energy management, Information
Technology-Home Electronic System
(HES) Application Model-Part 3: Model
of a Demand-Response Energy Management System for H, so that transactions occur automatically according
to parameters set by the customer.
However, consumers are also far
from the purely rational decision
makers assumed by traditional economic models, and there is often a
wide gap between peoples' values
and material interests and their actual behavior, which is why we need a
system that is highly coordinated
(Frederiks et al.). Reliably operating
the local distribution system below
each substation will entail coordinating operations of the interconnected
DERs, microgrids, and self-optimizing
customers and scheduling interchange with the transmission system
operator at the transmission-distribution interface. Although these
changes will make distribution
system operation much more complex than it has been in the past, they
appear to reflect the direction public
policy, customer preferences, and
technology are taking the industry
(Kristov and De Martini).

Summary
Transactive energy systems are creating interest because they address the
rapid changes that are occurring in
the electricity industry. New devices,
both personal and utility owned, will
be able to impact the grid directly
and also interact with each other. In
today's market, utilities must purchase surplus customer-generated
electricity when it is available (e.g.,
net metering requirements) and sell
power to those customers on the customer's demand. Utilities have less-

than-perfect predictions of when
customer-generated energy will be
available or when the customer
demands will arise. As more customers get behind the meter generation,
the system as a whole will become
less predictable, so it needs to
become more flexible and able to
respond rapidly to changing conditions and circumstances.
Coordinated smart buildings that
use transactive systems are the key
to addressing this challenge. I don't
know what the optimal solution
looks like, and I don't know how to
go about finding it in a principled
way, but I believe that entrepreneurialism will find a way because the
space is too large to ignore. I have
seen some candidate solutions to the
challenge, and we are starting to
develop methods to value transactive
systems. The rest is up to you.

For Further reading
S. Luke. (2015, Oct.). Essentials of metaheuristics: A set of undergraduate lecture
notes (2nd ed., version 2.2). Department
of Computer Science, George Mason
University, Fairfax, VA. [Online]. Available: https://cs.gmu.edu/~sean/book/
metaheuristics/
GridWise Architecture Council.
(2015). GridWise transactive energy
framework version 1.0. [Online]. Available: http://www.gridwiseac.org/pdfs/
te_framework_report_pnnl-22946.pdf
F. C. Schweppe, R. D. Tabors, and
J. L. Kirtley, "Homeostatic control: The
utility customer marketplace for electric power," Massachusetts Institute
of Technology, Energy Laboratory,
Cambridge, MA, Rep. MIT-EL 81-033,
Sept. 1981.
F. C. Schweppe, "Power systems
'2000': Hierarchical control strategies,"
IEEE Spectr., vol. 15, no. 7, pp. 42-47, July
1978.
Energy Information Administration. EIA 2014 annual energy outlook.
[Online]. Available: http://www.eia
.gov/forecasts/aeo/pdf/0383(2014).pdf
L. Kristov and P. De Martini. 21st
century electric distribution system
operations. [Online]. Available: http://
resnick.caltech.edu/docs/21st.pdf
J. Taft, P. De Martini, and R. Geiger.
(2014, June). "Ultra-large-scale power system control and coordination architecture," PNNL Rep. PNNL-23470. [Online].

I E E E E l e c t r i f i cati o n M agaz ine / december 2016

Available: http://gridarchitecture.pnnl
.gov/media/advanced/ULS%20Grid%20
Control%20v3.pdf
D. Barry, "Socket to them," in Bad
Habits. New York: Henry Holt, 1987, pp.
223-225.
C. Miller, M. Martin, D. Pinney, and G.
Walker. (2014, Apr. 30). Achieving a resilient and agile grid. [Online]. Available:
http://electric.coop/wp-content/
uploads/2016/07/Achieving_a_Resilient_
and_Agile_Grid.pdf
D. B. Hardin, E. G. Stephan, W. Wang,
C. D. Corbin, and S. E. Widergren,
"Buildings interoperability landscape,"
Pacific Northwest National Laboratory,
Richland, WA, Rep. PNNL-25124, 2015.
J. Taft and P. De Martini, "Ultra-large
scale control architecture," in Proc. 2013
IEEE Power and Energy Society Innovative
Smart Grid Technologies (ISGT), pp. 1-6.
Information Technology-Home Electronic System (HES) Application Model-
Part 3: Model of a Demand-Response
Energy Management System for HES, ISO/
IEC 15067-3:2012.
E. R. Frederiks, K. Stenner, and E. V.
Hobman, "Household energy use: Applying behavioural economics to understand consumer decision-making and
behavior," Renewable Sustainable Energy
Rev., vol. 41, pp. 1385-1394, Jan. 2015.

biography
Mark R. Knight (mark.knight@pnnl
.gov) is the chief engineer in the Electricity Infrastructure Group at the
Pacific Northwest National Laboratory and is responsible for providing
technical thought leadership and
project/program management for the
laboratory's research portfolio in distribution analysis and automation,
demand response, and distributed
energy technologies. His background
includes a mix of information technology work and business process
work as a researcher, a consultant,
and a utility employee in the United
Kingdom and the United States and
has spanned several areas, including
distribution, transmission, metering,
systems integration, deregulation,
interoperability, asset management,
and risk management. He has been a
member of the GridWise Architecture
Council since January 2012 and is a
graduate of Imperial College, London.

http://www.gridarchitecture.pnnl http://www.electric.coop/wp-content/ https://cs.gmu.edu/~sean/book/ http://www.gridwiseac.org/pdfs/ http://www.eia http://http:// http://resnick.caltech.edu/docs/21st.pdf

Table of Contents for the Digital Edition of IEEE Electrification Magazine - December 2016