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Application of DLT cybersecurity stack to TES applications for a scalable, cybersecure, and interoperable future

Transactive Energy Systems (TES) are expected to improve upon existing grid operations and capabilities by enabling the integration of traditional grid resources with distributed energy resources (DER). Distributed Ledger Technology or DLT (e.g., blockchain) presents itself as a viable instrument to support decentralized, autonomous, and tamper-evident applications, which can be leveraged within TES's ecosystem. DLTs can provide pertinent security controls including access controls, data immutability, and traceability in addition to other well-known advantages such as decentralization and scalability. This work demonstrates the DLT Cybersecurity stack and its applicability to TES-based use-cases/applications. The seven-layer DLT cybersecurity stack is a DLT-agnostic framework that can quickly be used to classify and group the individual needs of an application into the different processing and cybersecurity layers offered by a DLT using a common taxonomy and an architectural mapping framework. This enables application engineers to demystify and strengthen the overall security aspects of their systems while maintaining an open perspective towards features and drawbacks that may hinder their performance in real-world scenarios. The paper leverages the work performed by the IEEE P2418.5 - Blockchain for Energy Standards working group.

Blockchain, blockchain interoperability, Cybersecu↗

Modeling Framework for Evaluating Grid Disturbances

Recent research in the literature proposed parameter-based functional forms to quantify the impact of disturbances on electric power grids. This modeling was based on a concept of generalized grid disturbances that harmonized reliability and resilience. Three main stages—avoid, react, and recover—were identified, and to support practicality, were intended to be independently planned. An objective of the grid disturbance model was to fairly analyze the potential impacts of novel mitigations like transactive energy systems (TES) on grid reliability and resilience. Quantitative evaluation of a common performance metric (e.g., area under the curve of percentage customers online before, during, and after an event) over time was shown as an effective tool for such analysis. Such quantification may also enable system planners to assess the impact of appropriate mitigative actions for improving grid performance against potential disturbances. This is the focus of this report, i.e., presenting an evaluation modeling framework that can be utilized to evaluate grid performance against disturbances, under a variety of existing and possible new mitigative actions.

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.

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Avista CEF2 Shared Energy Economy: Modeling and Simulation

This research project supported Avista’s Shared Energy Economy (SEE) Project in Spokane’s University District (UDistrict), as funded by the WA Department of Commerce Clean Energy Fund (CEF) Phase 2. The SEE project comprises a microgrid with two campus buildings, two solar photovoltaic generators, and two batteries. The microgrid can operate grid-connected or off-grid. This research project included modeling the buildings and other microgrid components, simulating a transactive energy system, and supporting Avista’s testing of different use cases for the WA Department of Commerce. The main research finding is that buildings can be modeled successfully in a data-driven approach.

14 SOLAR ENERGY↗

Modeling of Marginal Cost for PV Inverter Ancillary Services Considering Inverter Aging under Transactive Energy Framework

PV inverters can provide ancillary services while providing active power. Transactive energy system (TES) incentivizes PV inverter to provide ancillary services and compensates for the cost of additional power losses due to additional reactive power production. However, providing ancillary services can shorten the lifetime of the PV inverter since additional reactive power increases the thermal stress of the PV inverter. This paper theoretically derives the lifetime shortening effect of a PV inverter when providing ancillary services. Based on the lifetime estimation, an improved marginal cost curve for the PV inverter ancillary services is derived. The improved marginal cost quantitively describe the willingness of the PV inverter to provide ancillary services by the given active power production and the ambient temperature. The proposed model is validated by a simulation case study.

Liu, Yunting↗

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

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↗

Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities

We propose an operating-envelope-aware, prosumer-centric, and efficient energy community that aggregates individual and shared community distributed energy resources and transacts with a regulated distribution system operator (DSO) under a generalized net energy metering tariff design. To ensure safe network operation, the DSO imposes dynamic export and import limits, known as dynamic operating envelopes, on end-users' revenue meters. Given the operating envelopes, we propose an incentive-aligned community pricing mechanism under which the decentralized optimization of community members' benefit implies the optimization of overall community welfare. The proposed pricing mechanism satisfies the cost-causation principle and ensures the stability of the energy community in a coalition game setting. Numerical examples provide insights into the characteristics of the proposed pricing mechanism and quantitative measures of its performance.

distributed energy resources aggregation↗

Community-Based Transactive Coordination Mechanism for Enabling Grid Edge Systems

The changing landscape of the electricity industry, characterized by a surge in distributed energy resources (DERs) and proactive customers, necessitates practical solutions for coordinated operations especially at the distribution-level. This paper introduces a community-based transactive coordination mechanism designed to incentivize customers for providing localized and system-level services reflected through real-time prices. The work presents a bidding approach for communities with DERs, such as solar photovoltaic (PV) and battery energy storage systems (BESS), to formulate their price-responsiveness for retail energy coordination, emphasizing a community-centric model. By sending bidding curves to a third-party, the mechanism enables customers with DER assets to actively participate in localized coordination with the load serving entity (LSE), thereby supplementing each other’s and even the utilities needs through a shared energy economy. The proposed transactive mechanism is implemented leveraging a co-simulation framework that integrates a distribution grid simulator and Python-based agents for performance evaluation. Collaboration with a local utility to access real distribution feeder models and consumption profiles yields simulation results demonstrating the potential to reduce costs by 12\% for communities with DERs like PV and BESS.

Community-based coordination, grid-edge systems, R↗

Using Co-Simulation to Model Interconnect-Scale Power Systems from Loads to Generators

Co-simulation is a modeling technique that allows analysts to combine simulation tools and their corresponding models to exchange data during run-time, allowing the creation of larger and more complex models across heterogeneous domains. HELICS is a co-simulation platform developed over the past six years that has been shown to be effective for these multi-domain analysis. Recently, a HELICS-based analysis was completed where the ERCOT electrical interconnect in the United States was modeled in high detail from bulk power system generation to individual customer loads. This model was used to evaluate a flat-rate and transactive energy tariff with integrated wholesale and retail real-time and day-ahead energy markets. This modeling allows detailed analysis showing how the operations of the power system under these tariffs impact all actors in the power system, from individual customers to bulk power system operators.

co-simulation, HELICS, transactive energy system, ↗

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↗

Integrating Transactive Energy into Reliability Evaluation for a Self-healing Distribution System with Microgrid

Non-utility owned distributed energy resources (DERs) are mostly untapped currently, but they can provide many grid services such as voltage regulation and service restoration, if properly controlled, and can improve the distribution systems reliability when coordinated with utility-owned assets such as self-healing control and microgrids. This paper integrates transactive energy control into the distribution system reliability evaluation to quantitatively assess the impact of non-utility owned DERs on reliability improvement. Here, a transactive reactive power control strategy is designed to incentivize the DERs to provide reactive power support for improving voltage profiles thus enabling additional customer load restoration during an outage. Also, an operational sequence to coordinate the non-utility owned DERs with the utility owned self-healing control and utility owned microgrids is designed and integrated into the service restoration process with the operational constraints guaranteed by checking the three-phase unbalanced power flow for post-fault network reconfiguration. The reliability indices are then calculated through a Monte Carlo simulation. The transactive reactive power control strategy is tested on a four-feeder distribution system operated by Duke Energy in the U.S. Results demonstrate that the non-utility owned DERs with the transactive control improve the reliability of both the system and critical loads by more than 30%.

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Progressing Analysis of Variable Electric Rates (PAVER) Study

The Progressing Analysis of Variable Electric Rates (PAVER) study analyzed the impact of a range of time-varying electric rates on the performance of a regional electric grid and the resulting costs for participating and non-participating customers. This analysis leveraged and extended the work of PNNL’s Distribution System Operator with Transactive (DSO+T) study. Five different rate designs were included: a flat volumetric energy charge, a typical Time of Use (TOU) rate, a dynamic energy (DE) rate (based on wholesale locational marginal prices), a dynamic energy and capacity (DE+C) rate, and, finally, a Block and Swing (B&S) rate that billed customers based on their average load profile at constant pricing, but used the DE+C dynamic price for load deviations from their average profile. These rates were analyzed in a large-scale co-simulation of an entire regional grid with a customer population representative of the current state. A large fraction (80%) of residential and commercial customers were assumed to participate in these time-varying rates with automatically controlled HVAC, water heaters, electric vehicles, and batteries. This study assumed no industrial sector participation. The DE and DE+C rates saw system peak loads reduced by 6-7%, while the large participation in the TOU rate case saw a significant rebound effect and a resulting peak load increase of >5%. The impacts to the annual and peak system demand impacted system wholesale prices and the overall grid operating costs. This cost structure determined the revenue needed to be collected from customers by each rate design. Participating customers on the DE and DE+C rates (located in one of the modeled DSOs) saw reductions in average annual electricity bills of 11-17% with average increases in monthly bill variation of no more than 13%. At such high participation levels, TOU customers saw 10% higher average annual bills (due to system-wide rebound effects) and average increased monthly bill variation of 16%. Residential owners of large flexible loads (such as electric vehicles) saw larger bill savings (17-20%) when on a fully dynamic rate. The presence of on-site generation (such as rooftop solar) did not appear to appreciably change customer outcomes. Customers on the Block and Swing rate did see 6% lower monthly bill variation (as intended) than the flat rate case, but at the expense of appreciable bill savings, which were only 3%, comparable to the savings seen by non-participants. Given this finding we recommend that additional research be conducted into how best various bill protection mechanisms can balance minimizing customer bill variation with providing financial incentives commensurate with the flexibility customers provide. We also recommend that customer outcomes be explored across a range of regions using current actual customer and system cost data.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

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↗

Transactive Energy Rationing in Islanded Electric Power Systems

Extreme weather events, many of which are climate change related, are occurring with increasing frequency and intensity and causing catastrophic outages. One of the major modern-day concerns of utilities is dealing with such extreme outages and consequently, its repercussions on the lives of people in society and social aspects. Traditionally, operators have been using rolling blackouts as a contingency plan to serve critical loads during such events when electricity supply is scarce. However, such blackouts practices are executed on a last-minute mandatory basis, depriving customers having low-capacity high priority loads (i.e. refrigeration, water, telecommunication, etc) that should also be serviced if at all possible. Historically, policymakers have often adopted quota-based regulatory actions or rationing for other commodities (such as gasoline, butter, sugar) to handle scarcity situations. Motivated from such quota based systems, our contribution presented in this work is an alternative transactive rationing mechanism that would provide some minimum level of service to all of the customers and serve the critical loads using market-based control during such scarcity-based contingencies. This is in contrast to the state-of-art TE mechanisms that allocate resources to customers solely based on their willingness-to-pay. The effectiveness of the proposed mechanism is demonstrated through simulation-based evaluation on two real-life use cases having feeder-level and microgrid-level configurations respectively. The simulation results clearly demonstrate the capability of the rationing scheme to serve customers’ high-priority loads through prolonged outages even during extreme scarcity scenarios.

42 ENGINEERING↗

Flexible Service Contracting for Risk Management within Integrated Transmission and Distribution Systems

The general objective of our project has been to investigate the ability of Independent Distribution System Operators (IDSOs), functioning as linkage agents for Integrated Transmission and Distribution (ITD) systems, to facilitate the flexible availability and usage of reserve in support of ITD system operations. This general objective is in accordance with Order 2222 of the U.S. Federal Energy Regulatory Commission (FERC), titled “Participation of Distributed Energy Resource Aggregations in Markets Operated by Regional Transmission Organizations and Independent System Operators”. The Final Rule for FERC Order 2222 was issued on September 17, 2020. The primary contribution of our project is that we have formulated an innovative energy management Transactive Energy Design (TES) approach for ITD systems that provides promising support for our project objective. Specifically, we have developed a new type of IDSO-managed TES design for distribution system operations, as well as new types of swing contracts permitting IDSOs to participate in transmission system operations as providers of reserve harnessed from distribution system resources in return for appropriate compensation. Together, these design elements constitute a scalable market-based approach facilitating efficient reserve procurement for ITD system operations from a fuller range of power resources. The efficacy of our approach has been demonstrated by means of detailed conceptual analyses as well as test case simulations. To implement the latter, we have developed the ITD TES Platform V2.0, a computational platform that permits the modeling and software implementation of ITD system operations over time. The Electric Reliability Council of Texas (ERCOT) energy region has been used as the empirical anchor for the development of this platform. Our conceptual and test-case work has been reported in a Wiley/IEEE Press book, two refereed book chapters, and seven refereed journal articles. The key components comprising the ITD TES Platform V2.0 have been released as documented open-source software at online GitHub repositories.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Modeling the Functional Forms of Grid Disturbances

This report introduces a functional form that may be used to quantitatively predict the impacts of new grid tools and changing system qualities on the likelihoods, durations, and depths of various grid disturbances. Each disturbance scenario is modeled to have three component stages—avoidance, reactance and recovery, which together parametrically estimate one disturbance’s impacts. The modeled scenario is then placed and replicated within an analysis period to represent the likelihood or frequency of the scenario and its consequent impacts. Whereas analysts have struggled to define and apply metrics for grid resilience, the functional form introduced by this report shares units of measurement with accepted grid-status measures (e.g., numbers of customers currently experiencing a service outage). Furthermore, the integrated and averaged functional form over an analysis period provides a meaningful normalized performance metric (e.g., customer outage minutes per year) that is ultimately independent of the duration of the period of. The approach may be applied similarly regardless of the severity or frequency of the disturbances that are being analyzed. Because metrics can be chosen to be identical in both the hypothetical future and the actual historical past, the historical past eventually becomes the test of the future predictions, at least in a statistical sense. The authors originally developed this approach to facilitate analysis of the effects of transactive energy (TE) systems effects on electric power grid resilience. TE systems invite energy suppliers and consumers to actively collaborate toward the discovery of, and their responses to, the locational value of energy. The findings from this process are often embodied as energy prices, the dynamics of which indicate the locational value of energy and can further represent important grid service needs. While some academic papers claim to quantify the value of a specific TE system design toward grid resilience, the answer, in general, has been elusive. Not only do multiple and conflicting definitions of resilience and reliability exist, but countless TE systems are being invented. We conclude the following: (1) The ideal analysis should harmonize rather than differentiate resilience and reliability. Therefore, this report uses the more general term disturbance whenever the overloaded terms resilience and reliability can be avoided. (2) The effectiveness of TE systems must be mapped to underlying qualities of a TE system, thereby avoiding presumptions that every TE design offers similar advantages. The authors seek to evaluate the parametric effects of TE system qualities (e.g., spatial granularity, granularity of time steps, length of future prediction horizon) on avoiding, reacting to, and recovering from grid disturbances. Furthermore, any advantages (or disadvantages) must be fairly compared with the many alternative tools, systems, and strategies that might offer comparable benefits.

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