Valuation of Transactive Energy Systems
The U.S. Department of Energy (DOE) is funding research on transactive systems as a key enabler for engaging distributed energy resources (DERs) in both the electric power system and in building energy management systems. The Pacific Northwest National Laboratory (PNNL) has been funded by DOE to develop a valuation methodology for transactive energy systems. When applied, the methodology will yield costs and benefits of alternatives scenarios that can be compared or ranked. Costs and benefits can be mapped to relevant stakeholders in order to understand impacts from multiple perspectives.
There are many different types of evaluations of electric power grid technologies. The foundational bases of evaluations are often difficult to discern without investigating the deepest engineering details. When evaluating alternative resources including demand-response opportunities or subtly different market-like mechanisms, such as transactive energy systems, it is important to have a common basis of understanding how the “functions” provided are being identified, measured, and valued.
The methodology strives to formalize the way a valuation problem is set up so that the results will be foundationally strong, comparable, and consistent. The methodology is being developed to be extensible and therefore applicable to unforeseen future scenarios. We intend to build upon the important work already being performed by other entities.
GridWise® Valuation of Transactive Energy Systems Meeting Series
The GridWise Architecture Council® (GWAC) is convening this meeting on behalf of DOE and PNNL to engage experts in the field of electric system operations, planning, policy, research and regulation to discuss the valuation methodology and related topics. Participants will learn about and provide valuable feedback on the draft methodology that seeks to leverage related and complimentary work of others.
Technical Meeting #1
On July 7-8, 2015, GWAC convened the kick-off meeting on this project at PNNL in Richland, Washington. In addition to PNNL staff, presentations were made by Farrokh Rahimi (GWAC), James Newcomb (Rocky Mountain Institute (RMI), Michael Bendewald (RMI), Erin Erben (Eugene Water and Electric Board), Jeff Roark and Bernie Neenan (Electric Power Research Institute (EPRI)), Forrest Small (Bridge Energy Group), Erik Gilbert (Navigant), Lynne Kiesling (Northwestern University), Jeremy Hargraves (E3), Daniel Kirschen (University of Washington), and Kyri Baker (National Renewable Energy Laboratory). Meeting participants agreed that a common valuation methodology could serve as a valuable decision-support tool for utilities, regulators and other policymakers in an increasingly complex energy ecosystem. Learn more from the meeting proceedings.
Technical Meeting #2
On September 29-30, 2015, GWAC convened a second meeting that was hosted by the Electric Reliability Council of Texas (ERCOT). The purpose of this meeting was to present and get feedback on the structure of a valuation methodology for transactive energy systems being developed at the PNNL under contract with DOE. Learn more from the meeting proceedings.
Technical Meeting #3
Meeting to be announced soon.