Architectural Basis for Highly Distributed Transactive Power Grids

Simple Transactive Energy Systems have been built using ad hoc approaches to the placement and interconnection of the transactive nodes but engineering principles or design guidelines for building such systems have been lacking. Consequently, the proliferation of transactive Distributed Energy Resources (DERs) and transactive building-to-grid services has been hampered and the development of interoperability standards has been slow. 

In order to realize the full potential for extracting the latent capacity and performance available in distribution systems with DER on a real time basis, transactive elements must be distributed throughout the distribution grid to take account of local conditions with sufficient granularity. We may state a new architectural thesis for future grids this way: given highly volatile and dispersed resources and physical constraints across the grid, provide a unified multi-tier coordination schema that simultaneously optimizes operation across all parts of the power delivery system, from the markets, balancing, planning, and operational levels to the transactive and prosumer levels. 

This paper provides an architectural framework for highly distributed Transactive Energy grids. The framework guides the engineering of transactive distribution systems, informs the necessary interoperability standards, and fills in the gap in the ability of electric distribution utilities to write the Grid Codes that define how prosumer and third party devices plug into such a grid. This architecture resolves a major hurdle to Transactive Grid deployment.