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Distribution System Operator with Transactive (DSO+T) Study: Volume 1 (Main Report)

The Distribution System Operator with Transactive (DSO+T) study investigates the engineering and economic performance of a transactive energy retail market coordinating a high penetration of customer-side flexible energy assets. The study seeks to answer whether such an implementation is cost effective for customers, recovers sufficient revenue for DSOs, and is equally applicable and beneficial to a range of flexible asset types, renewable generation scenarios, and market assumptions. Using a highly interdisciplinary co-simulation and valuation framework, this assessment encompasses the entire electrical delivery system from bulk system generation and transmission, through the distribution system, to the modeling of individual customer buildings and flexible assets (including heating, ventilation, and air conditioning [HVAC] units, water heaters, batteries, and electric vehicles). The study exercises a transactive energy retail market coordination scheme designed to integrate with an existing day-ahead and real-time competitive wholesale electricity market. Software decision-making agents are designed for the retail market operator as well as various price-responsive flexible assets. The engineering and economic performance of the transactive energy scheme is studied for two separate flexible asset deployments: flexible loads (HVAC units and residential water heaters) and behind-the-meter batteries. The results of each transactive case are compared to a business-as-usual case. These cases are subject to two different renewable generation scenarios, a moderate renewable generation scenario, representative of current levels of renewable generation deployment, and a future high renewables scenario, including the increased deployment of rooftop solar photovoltaic and electric vehicles. The transactive coordination scheme is shown to produce effective and stable control and decrease peak loads 9–15%. The resulting annual demand flexibility provides net economic savings of $3.3–5.0B per year for a region the size of Texas. Detailed analysis shows that net benefits were seen for a range of distribution system operator, customer, and flexible asset types. Both participating customer (with transactive flexible assets) and nonparticipating customers (with nonflexible assets) see reductions in annual utility bills and net annual energy expenses in the range of 10–16%.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Modeling Value Flows in Utility Rate Structures

As the increased adoption of distributed energy resources continues to challenge flat utility rate structures, time-varying rates and more dynamic mechanisms like transactive energy systems can better leverage customer-sited distributed energy resources to provide grid services. However, adopting new utility policies can be a timely process and requires a high level of transparency into the energy system. A wide range of stakeholders must understand who may be affected by policy changes and how. This work employs the valuation methodology developed under Pacific Northwest National Laboratory’s Transactive Systems Program to outline the functional differences in value flow under a series of conventional rate structures and a transactive energy system. The resulting value model illustrates the nuances that arise and highlights future avenues of work that will be necessary as utilities across the country continue to develop new rate structures and market mechanisms.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

A Unified Testing Platform to Mature Blockchain Applications for Grid Emulation Environments

Blockchain technology is a relatively novel technology that can be used to develop more decentralized, autonomous and tamper-evident solutions. A feature that can aid Transactive Energy Systems to reach their goals by enabling individual actors to communicate and reach consensus with other participants in a more decentralized fashion. However, technical barriers to evaluate and adopt this type of technology within the electrical domain still exist. To facilitate this task, BLOSEM Unified Testing Platform (UTP), a DOE-sponsored, multi-lab effort intends to accelerate the development of solutions by offering a common set of reusable services that can be used to interconnect existent grid tools with blockchain services. UTP is intended to serve as development platform that can provide application engineers with the technical means to evaluate potential blockchain solutions, by enabling them to concentrate on the actual application functionalities while at the same time abstracting the connectivity and performance measurement tasks. The use of BLOSEM UTP is further demonstrated by implementing two potential use cases that are intended to validate both the feasibility of implementing these applications as blockchain-based solutions while also demonstrating the features provided by UTP.

blockchain co-simulation↗

Multi-stage charging and discharging of electric vehicle fleets

Fleets of electric vehicles will likely shift electricity demand, and the effect of upstream charging emissions will come from generation sources that are dispatched in response. This study proposes a multi-stage charging and discharging problem to translate low-cost energy transactions into vehicle dispatch decisions. A day-ahead charging optimization problem minimizes electricity purchases and marginal emissions damages, with energy transactions becoming targets in an optimization-based dispatch strategy for an on-demand shared autonomous electric vehicle (SAEV) fleet. The framework was tested for Austin, Texas, using an agent-based simulator. Fleets can schedule charging to lower daily power costs (averaging 15.5% or $\$0.79$/day/SAEV) while reducing health damages from generation-related pollution (2.8% or $\$0.43$/day/SAEV). Finally, fleet managers can increase profits ($\$8$ per SAEV per day) by adopting a multi-stage charging and discharging strategy that can serve more passengers per day than price-agnostic dispatch strategies.

33 ADVANCED PROPULSION SYSTEMS↗

Digital Real-Time Simulation and Power Quality Analysis of a Hydrogen-Generating Nuclear-Renewable Integrated Energy System

This paper investigates the challenges and solutions associated with integrating a hydrogen-generating nuclear-renewable integrated energy system (NR-IES) under a transactive energy framework. The proposed system directs excess nuclear power to hydrogen production during periods of low grid demand while utilizing renewables to maintain grid stability. Using digital real-time simulation (DRTS) in the Typhoon HIL 404 model, the dynamic interactions between nuclear power plants, electrolyzers, and power grids are analyzed to mitigate issues such as harmonic distortion, power quality degradation, and low power factor caused by large non-linear loads. A three-phase power conversion system is modeled using the Typhoon HIL 404 model and includes a generator, a variable load, an electrolyzer, and power filters. Active harmonic filters (AHFs) and hybrid active power filters (HAPFs) are implemented to address harmonic mitigation and reactive power compensation. The results reveal that the HAPF topology effectively balances cost efficiency and performance and significantly reduces active filter current requirements compared to AHF-only systems. During maximum electrolyzer operation at 4 MW, the grid frequency dropped below 59.3 Hz without filtering; however, the implementation of power filters successfully restored the frequency to 59.9 Hz, demonstrating its effectiveness in maintaining grid stability. Future work will focus on integrating a deep reinforcement learning (DRL) framework with real-time simulation and optimizing real-time power dispatch, thus enabling a scalable, efficient NR-IES for sustainable energy markets.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Equitable Transactive Market Design to Coordinate Networked Microgrids with Mixed Ownership

This paper presents an inter-microgrid peer-topeer (P2P) transactive market mechanism to support the coordination of multiple microgrids in a mixed-ownership environment, while enabling prosumers to actively participate in the market to get their own benefits. An equitable P2P transactive energy market is designed, in which the energy burden to customers within microgrids is fairly distributed by leveraging a peer-to-peer communication network among MG owners and the distribution system operator (DSO). To reach the market settlement, a consensus-based distributed optimization algorithm is introduced to enable each MG owner and the DSO to distributedly determine the cleared price which is compensated by a household-income-based discount factor to encourage the energy-burden equity among customers in networked microgrids service territory. Numerical results on the modified 123 node test feeder including 6 microgrids are used to demonstrate the operation of the introduced equitable transactive energy market.

Vu, Thanh Long↗

DSO+T: Expanded Study Results DSO+T Study: Volume 5

The Distribution System Operator with Transactive (DSO+T) study investigates the engineering and economic performance of a transactive energy retail market coordinating a high penetration of customer-side flexible energy assets. The study seeks to answer whether such an implementation is cost effective for customers, recovers sufficient revenue for DSOs, and is equally applicable and beneficial to a range of flexible asset types, renewable generation scenarios, and market assumptions. This report volume provides a detailed set of results for the DSO+T study extending results presented in Volumes 1, 2, and 4. The engineering and economic performance of the transactive energy scheme is presented for two separate flexible asset deployments: flexible loads (HVAC units and residential water heaters) and behind-the-meter batteries. The results of each transactive case are compared to a business-as-usual case. These cases are subject to two different renewable generation scenarios, a moderate renewable generation scenario, representative of current levels of renewable generation deployment, and a future high renewables scenario, including the increased deployment of rooftop solar photovoltaic and electric vehicles. The transactive coordination scheme is shown to produce effective and stable control and decrease peak loads 9–15%. The resulting annual demand flexibility provides net economic savings of $3.3–5.0B per year for a region the size of Texas. Detailed analysis shows that net benefits were seen for a range of distribution system operator, customer, and flexible asset types. Both participating customer (with transactive flexible assets) and nonparticipating customers (with nonflexible assets) see reductions in annual utility bills and net annual energy expenses in the range of 10–16%.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Electric Access System Enhancement (EASE): Assessment of a Distributed Energy Resource Management System for Enabling Dynamic Hosting Capacity

The Electric Access System Enhancement (EASE) project demonstrated a scalable, interoperable, and cost-effective means of integrating high penetration of distributed energy resources (DERs). The control architecture developed leveraged a Distributed Energy Resource Management System, Distribution System Operator for transacting energy, and 3rd Party DER Aggregator platform. The project identified ways to enhance the customer interconnection process to the grid and improve access to information from DERs and optimize the usage of DERs to provide energy services in a simulated day-ahead shadow market while maintain grid reliability. By integrating these capabilities into a scalable system of systems, the DSO can effectively balance DER generation and customer demand on the distribution network. This capability allows the grid to host more DER than traditionally possible on wires alone. Hosting more DER has the added benefit of supplying increased demand growth, sometimes beyond the capacity limits of the distribution network itself. This is known as a dynamic hosting capacity, which could help utilities manage the forecasted growth in electricity demand as California switch to electric vehicles and appliances. This could help to establish energy storage and PV generation as a “pseudo firm” generation resource mix if managed appropriately and provide sufficient resource adequacy for distribution capacity upgrade deferrals.

14 SOLAR ENERGY↗

Fast Quasi-Static Time-Series Simulation for Accurate PV Inverter Semiconductor Fatigue Analysis with a Long-Term Solar Profile

Power system simulations with long-term data typically have large time steps varying from one second to a few minutes. However, for PV inverter semiconductors, the minimum thermal stress cycle occurs over the fundamental grid frequency (50 or 60 Hz). This requires the time step of the fatigue simulation to be around 100 µs. This small time step requires long computation times to process yearly power production profiles. This paper proposes a fast fatigue simulation for inverter semiconductors using the quasi-static time series (QSTS) simulation concept. The proposed simulation calculates the steady state of the semiconductor junction temperature by using a Fast Fourier Transform (FFT). The small thermal cycling during a switching period and even over the fundamental waveform is disregarded to further accelerate the simulation speed. The resulting time step of the fatigue simulation is 15 minutes, which is consistent with the solar dataset. The error of the proposed simulation is 0.16% compared to the fatigue simulation results using the complete thermal stress profile. A PV inverter that responds to a Transactive Energy System (TES) is simulated to demonstrate the use of the proposed fatigue simulation. The proposed simulation has the potential to co-simulate with system level simulation tools that also adopt the QSTS concept.

Liu, Yunting↗

Federated Architecture for Secure and Transactive Distributed Energy Resource Management Solutions

There are fewer conventional, dispatchable generation resources and more variable renewable energy (VRE) and distributed energy resources (DERs). There is more uncertainty from bulk-level VRE and net demand from distribution systems with high DER levels. FAST-DERMS aims to develop and demonstrate a scalable solution for managing uncertainties in supply and demand at the grid edge. We propose that distribution system operators (DSOs) provide firm net load forecasts to the bulk system operator's energy management system (EMS).

distributed energy resources↗

Reduced Order Model of Transactive Bidding Loads

Transactive energy (TE) has been identified to provide better grid efficiency and reliability by market-based transactive exchanges between energy producers and energy consumers. Simulations of TE systems are crucial to evaluate the benefits and impacts of different transactive mechanisms. However, such simulations can be time consuming due to the information exchange between various participants and complex co-simulation environments. In this paper, we develop a reduced order model to speed up the simulation of transactive systems in TE simulation platform (TESP) while achieving very low error between the reduced order and full model results. Specifically, the developed reduced order model consists of an aggregate responsive load agent which utilizes two Recurrent Neural Networks (RNNs) with Long Short-Term Memory units (LSTMs) to enable transactive elements to collectively participate in the TE system. The proposed aggregate responsive load (ARL) agent is able to produce similar transactive behaviors to the full simulation model while achieving significant simulation time reduction. Finally, we also show that the developed model enables generalization of simulation results across different dates and across different number of loads included in the simulations.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Smart Contract Architectures and Templates for Blockchain-based Energy Markets (V.1.0)

Within the field of Transactive Energy Systems (TES), there is an active need for tools that can support and accelerate the development of these new grid solutions. Among the many tools available, blockchain stands out as a viable instrument that can help researchers develop decentralized, autonomous, and tamper-resistant grid applications. In this work, we explore the use of smart contracts (SCs), a subset of blockchain technology, and analyze their applicability to facilitating the implementation of TES solutions. In particular, we focus on presenting areas of opportunity and potential drawbacks, along with use cases that can benefit from this technology building upon previous research developed by Pacific Northwest National Laboratory and other research organizations. This work builds upon the fundamentals of TES and smart contract technology to develop a series of software templates that can be used by industry to build TES-oriented grid solutions. These templates are intended to be platform agnostic and take into consideration the unique properties of SCs and distributed ledger storage mechanisms to ensure actual code implementations remain aware of the limitations of the technology. The proposed templates have the potential to enable software architects to mix and match components to satisfy their application requirements, thereby reducing the number of resources required to implement blockchain-based solutions. These templates are divided into two main components—data and behavioral models. The data models are intended to help software engineers represent the underlying grid objects along with their properties in a ledger-based storage system. The behavioral models are used to describe the processes and actions that actors within a system must perform to achieve a given outcome such as registering an asset, placing a bid, and performing bid clearances. These two components are documented in a Unified Modeling Language (UML) format and are intended for use in SC-based implementations, with special behavioral considerations to account for the asynchronous properties of the underlying ledger and the typical execution model of smart contracts. Finally, future research ideas and potential extensions to this work are discussed. In particular, known limitations and potential improvements of the developed product are identified and expected to be addressed in future revisions of the template model.

24 POWER TRANSMISSION AND DISTRIBUTION↗

On Harmonizing Today’s Regulated Tariffs and Future Dynamic Electricity Pricing

A novel method for harmonizing the advantages of dynamic retail electricity pricing with the protections of regulated electricity tariffs is discussed and demonstrated. The method socializes and protects customers from long-term locational price variability that is unfair to those customers who are, by no fault of their own, served at congested locations on a distribution system. However, the method preserves short-term (e.g., diurnal) price variability that might induce helpful, mitigative responses from retail electricity customers. Because the method causes actual price recovery to track a customer class’s approved, regulated price recovery, the method may remove regulators’ objections to dynamic electricity pricing and thereby hasten adoption of market-based retail electricity pricing and transactive energy systems.

Consumer protection, Demand response, Market resea↗

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

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.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DSO+T: Integrated System Simulation (DSO+T Study: Volume 2)

This report summarizes an integrated co-simulation model used by the Distribution System Operator with Transactive (DSO+T) study to represent an electrical generation, delivery, and end-load systems for the purposes of assessing the viability and value proposition of transactive energy coordination of flexible assets versus a business-as-usual case. The integrated co-simulation model includes the bulk generation and transmission system, including the day-ahead and real-time scheduling and dispatch of thermal generators. Forty distribution system operators were modelled in detail, including tens of thousands of residential and commercial buildings and their flexible end-loads. These included HVAC systems, residential water heaters, electric vehicles, and stationary, behind-the-meter, batteries. Both wholesale market and end-load results for the business-as-usual case are presented and compared to actual ERCOT system data to assess the accuracy and representativeness of the resulting model.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Allocation Mechanisms in Rationed Markets

Economic theory has come to play an important role in power system operations through the design of wholesale markets that are central to their operation. Furthermore, transactive energy places economic theory as a cornerstone in its operational concept as it seeks to integrate the technical needs of the power system with the preferences of its participants. Traditionally the mechanism employed is the continuous double-auction but de-pending on the circumstances the power system find itself in, this mechanism may or may not be the most appropriate, i.e. a one-size fits all market institution cannot be recommended without regard for the features of the underlying trading environment. This paper seeks to explain the economic rationale that guides the choice of a market institution and takes recourse to a theoretical demonstration in the context of a rationed power system scenario where demand exceeds generation (due to any number of events such as outages, microgrid operation, etc) and electrical energy must be rationed to better understand which types of mechanisms are most appropriate.

transactive energy, power system economics, econom↗

Transactive HVAC Agent - Design and Performance Evaluation

Transactive energy systems are playing an increasingly important role in the efficient and reliable marketbased operation of the power grid. Since a significant portion of the residential building energy consumption is from heating ventilation and air conditioning (HVAC) systems, HVAC is one of the most promising resources to provide load flexibility. However, utilizing HVAC flexibility to provide various grid services while simultaneously maintaining consumer comfort and cost-reductions is challenging. This paper presents a design of a transactive HVAC agent (T-HVAC) to be used as a supervisory control for the HVAC system that can simultaneously ensure comfort and cost-reduction. In particular, the T-HVAC a) estimates HVAC thermal dynamics, b) ensures optimal operations of the HVAC system, and c) participates into markets, and d) implements a market-based control via controlling the thermostat temperature set-point. The T-HVAC performance is demonstrated through multiple scenarios and illustrations.

Demand flexibility, distribution system, HVAC, Tra↗