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DOE OSTI2022

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↗

DOE OSTI2020

Sequence-to-sequence neural networks for short-term electrical load forecasting in commercial office buildings

The U.S. power grid is transforming to become smarter, cleaner, and more effi- cient. This is leading to the addition of significant distributed variable renew- able generation. Due to the variable nature of renewable generation, the short- and long-term supply-demand imbalances are less predictable, and conventional approaches to mitigating the imbalance will not be efficient or cost-effective. To address this challenge, transactive control technologies have been proposed which balance energy generation and consumption with market activity and in- frastructural limitations. Transactive control requires the ability of individual end-use loads to express flexibility as a function of a transactive signal (e.g., price). Empirical gray- and black-box models have been widely used to express flexibility, and although these approaches are generally easy to construct and simple to use, they do not capture the non-linear behavior that some end-use loads represent . Machine learning approaches have been proposed to address this limitation. Although deep learning approaches for forecasting end-use loads have been explored, certain aspects of the application of deep models to load forecasting are not well understood. These aspects include how much training data is required, and how models should be structured and trained. To that end, this work explores how to approach applying deep recurrent neural networks to short-term electrical load forecasting with a case study of four commercial office buildings. We identify data requirements for training accurate models of whole building electricity use conditioned on outdoor temperature, provide insight into model hyperparameter sensitivity, and demonstrate how readily models can be generalized to unseen buildings.

Skomski, Elliott↗

DOE OSTI2022

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↗

DOE OSTI2022

Proactive demand-side participation: Centralized versus transactive demand-Supply coordination

The active participation of demand-side flexible resources in the wholesale market price formation and load dispatch process is crucial to encouraging demand-side participation. This calls for a joint supply-demand coordination mechanism to fully take advantage of the flexible resources in distribution systems, including distributed energy resources (DERs) and responsive loads (RLs). Here this paper aims at comparing and evaluating the centralized and transactive distribution-level market coordination mechanisms. We introduce the centralized and transactive demand-supply coordination mechanisms for the distribution-level market and elaborate on the structural difference between the two frameworks. Relevant metrics and test scenarios are proposed for a meaningful comparison. The key observations of the comparative study are generalized from the perspective of different entities in the market: fixed loads, flexible loads, DERs, and conventional generators. It is observed that while the centralized approach leads to socially optimum solutions, the transactive approach by allowing for competitive bidding at the distribution-level, results in clearing higher flexible demand, and thus higher electricity cost at the transmission-level. As a result, DERs and fixed loads receive a higher surplus in the centralized approach, while conventional generators and flexible loads are more profitable in the transactive approach.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2021

Transactive energy systems for distributed blackstart and service recovery

Abstract Current transactive controls use marginal benefits and marginal costs to achieve an economic market efficiency during normal grid operations. However, the transactive mechanisms designed for normal economic operations cannot be applied directly for the contingencies because the grid operations during contingencies are often dictated by technical needs rather than purely economic criteria. For instance, one of the key technical requirements for the blackstart is to have at least one blackstart capable resource cleared which cannot be ensured by the transactive mechanism designed for normal economic operations because they work primarily based on the marginal benefit and marginal cost of the participants. This article presents one of the first attempts to develop a transactive mechanism to be used during grid contingencies. A distributed blackstart and service recovery is used as an example contingency to evaluate the performance of the proposed transactive mechanism. The performance of the proposed transactive mechanism is demonstrated for various use cases using a modified IEEE‐123 node test system. The simulation results demonstrated the proof of concept of applying a transactive mechanism to enable distributed blackstart and service recovery by engaging the mix of blackstart capable and non‐capable distributed energy resources.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2024

The Transactive Energy Network Template Metamodel

While transactive energy, which is defined as an allocation of electricity based on dynamically discovered values or prices, has been extensively studied, its uptake and use has been slow. This report describes a tool, the transactive network template, which should hasten the creation and uptake of transactive energy networks. Some basic principles of transactive energy are familiar from existing wholesale electricity markets. Locational prices are calculated today for zones within bulk electric transmission systems. Locational prices differ while accounting for the locational costs of electricity generation and the losses and constraints incurred when electricity is transmitted from generators and distributed to consumers. A transactive energy network might include these transmission zones. However, current research strives to apply transactive energy also in electricity distribution circuits, buildings, and even for individual generating and consuming devices. At the same time, researchers explore how to apply transactive energy in real time during increasingly shorter time intervals. Automated computational agents become necessary as transactive energy becomes applied to smaller circuit zones and at faster dynamic timescales. A transactive energy network is an example of a multi-agent system. Each zone in the network is represented by its transactive agent, which makes decisions for and acts on behalf of a business entity that is responsible for and manages one of the circuit regions. A transactive energy network is also an example of a decentralized, distributed control system. Control decisions and responsibilities are distributed among the network’s transactive agents. The transactive agents are independent; that is, there typically is no centralized authority or oversight function. Instead, transactive agents exchange transactive signals and thereby negotiate the prices and quantities of electricity that they will exchange. Initially, the circuit regions and responsibilities of transactive agents appear to be very dissimilar. Each circuit region may comprise transmission, distribution, or building-level circuits. Each has a unique position and electrical connectivity within the transactive energy network. Each possesses unique assets that either generate or consume electricity, and these (e.g., renewable energy generator, diesel generator, aggregate utility load, building load, space conditioning, refrigerator, etc.) may further differ in their price flexibility and in their strategies for responding to dynamic electricity prices. Given such diversity, an implementer’s first inclination might be to start from scratch to define all these devices and to engineer their seemingly unique interactions. Given that each implementer’s perspective may be narrow within a transactive energy network, it is unlikely that uniquely engineered systems would interact well. This is where the transactive network template is applicable. The transactive network template is a metamodel that has been developed to guide implementers as they configure their own transactive agent within a network of such agents. The object-oriented design of the transactive network template provides basic code object types that may be used and extended by implementers to represent each of the assets in their circuit region. These objects further facilitate the transactive agent’s necessary computations, which are divided among responsibilities to schedule power usage, balance electric supply and demand, and coordinate the exchange of electricity with the other transactive agents. This report addresses the conceptual transactive network template design. Implementers are directed to more formal design documents and reference implementations. A Python™-based1 reference implementation of the transactive network template has been coded, and three implementations have been configured to represent a national laboratory and two university campuses. Version 2 of the transactive node template generalizes the market class and its methods to facilitate multiple, and more diverse market coordination mechanisms than were facilitated by and demonstrated using Version 1. Version 3 includes new Appendix B, which addresses the designs of methods that would make dynamic prices track approved electricity rates. In the future, the author wishes to make the transactive network template more generally applicable to networks that require more accurate power flow. Development of the transactive network template is jointly funded by the U.S. Department of Energy (DOE) Energy Efficiency and Renewable Energy and the DOE Office of Electricity. In late 2015, one of the first projects to be funded by the DOE Grid Laboratory Modernization Laboratory Consortium was the Clean Energy and Transactive Campus project, led by Pacific Northwest National Laboratory. DOE funds were matched by an investment by the Washington Department of Commerce through its Clean Energy Fund. The transactive network template was developed to guide the implementation of transactive energy networks within this project’s scope.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2022

Impact of FERC Order 2222 on DER Participation Rules in US Electricity Markets

Electricity markets in the bulk grid are beginning to implement market mechanisms that support the procurement of flexible capabilities from wide range of technologies, including distributed energy resources (DERs). The flexibility of these resources will help counterbalance supply uncertainties from large-scale integration of variable renewable generation. To encourage development of distributed and aggregated market participants, FERC Order 2222 was issued in September 2020 to require each Independent System Operator (ISO) in the US to implement rules that enable broader participation from aggregations of DERs in the bulk market. The following paper first describes the generic design of ISO markets before introducing the new market participation rules that ISOs have proposed for compliance with Order 2222. The paper then describes how software performance issues may continue to affect the eligibility requirements and offer structures for DER aggregations participating in ISOs, noting that continued research on computational methods may help reduce burdens for DER integration. The prospects for transmission and distribution system coordination is second major issue discussed, which will require minor changes to existing processes in the short term. In the longer term, there is more opportunity for more wide-ranging reforms, such as the development of a Distribution System Operator (DSO) framework. Newly proposed market rules may affect how Transactive Energy Systems (TES) will help facilitate efficient formation of DER aggregations and operation of the individual DERs within an aggregation. Within the TES context, the challenge is to fully understand how resource eligibility and operational and planning coordination methods will affect the design and implementation of TES.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2022

DSO+T: Transactive Energy Coordination Framework (DSO+T Study: Volume 3)

This report describes a transactive energy coordination scheme designed to integrate into existing day-ahead and real-time wholesale energy markets. This scheme was evaluated in the Distribution System Operator with Transactive (DSO+T) study to assess the engineering and economic performance of the transactive energy coordination of a large-scale deployment of distributed energy resources (DER). Transactive agents were developed for a range of DERs (heating, ventilation, and air conditioning units, water heaters, batteries, and electric vehicles) that optimize flexibility over a 48-hour horizon and adjust their strategy in response to changes in real-time prices. A transactive energy coordination scheme, executed by a DSO retail market operator, aggregates these DER bids from participating customers and clears them against a DSO supply curve using a double auction market mechanism. The process of constructing the price-quantity DSO supply curve includes distribution-level transportation constraints (for example, substation congestion limits) and forecast locational marginal price of the DSO’s connected transmission node. The resulting day-ahead and real-time quantities are then bid into a competitive wholesale market operated by an independent system operator. This report also details additional capabilities for proper marketplace simulation such as wholesale price, weather, and load forecasting. The report concludes with a discussion of lessons learned and key design features required to ensure successful operation.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2023

Overview on Transactive Energy—Advantages and Challenges for Weak Power Grids

This document lists some challenges that researchers face when implementing transactive energy in weak power grids. These challenges often include high voltage fluctuations, limited generation, high line loadability, and unbalanced grids. The operation of transactive energy, as well as optimization techniques, are also considered, highlighting the performance and functionalities depending on power grid characteristics and market topology. Some of the most used optimization techniques for market clearing, considering the characteristics and topology, are presented as part of the research work. In addition, this paper compares different market topologies and highlights their advantages and challenges. Furthermore, this paper contains a brief description of the interoperability frameworks applied to a smart grid. As a result, it was determined that interoperability is necessary for the proper functioning of the grid. Moreover, all methods were found to be effective for their purpose from the user’s point of view as each technique has different characteristics relevant to the user and the grid. It was concluded that it is convenient to combine the optimization techniques to consider different constraints in the market clearing.

14 SOLAR ENERGY↗

DOE OSTI2020

Framework for Large-scale Implementation of Wholesale-Retail Transactive Control Mechanism

Transactive energy is a control technique that uses market mechanisms to achieve desired control objectives. Several simulation studies and field demonstrations were carried out in recent years, but all focused on small scale systems and purpose-built simplified models which are not always capable of pointing out all the advantages and shortcomings of transac- tive energy methods. This work describes a co-simulation framework built on a hierarchical control architecture that allows for conducting studies of the impacts of a very large-scale deployment of transactive energy. The hierarchical transactive control architecture adopted in this work helps with alleviating computation and communication burden to facilitate a more effective large scale real-time market operation among device level resources and the system level operators. The co-simulation framework is evaluated an integrated power sys- tem model of unprecedented scale composed of the Western Electricity Coordination Council (WECC) transmission system with tens of thousands of distribution systems deployed with flexible device-level distributed energy resources (DERs) using off-the-shelf simulators.

Transactive energy, market-based controls, DER int↗

DOE OSTI2024

Technology progress and clean vehicle policies on fleet turnover and equity: insights from household vehicle fleet micro-simulations with $\text{ATLAS}$

This paper documents the design and application of ATLAS (Automobile and Technology Lifecycle-Based ASsignment), a comprehensive household vehicle transaction and technology adoption micro-simulator in the San Francisco Bay Area. ATLAS evolves the fleet mix of individual households by simulating the vehicle transaction and choice decisions in response to co-evolving demographics, land use, and vehicle technology simulations. While most existing literature has focused on the aggregate clean vehicle uptake, this paper differentiates distributional effects and decomposes the underlying mechanisms across heterogeneous sub-populations of households. Using scenarios and sensitivity simulations that vary vehicle technology and policy assumptions, we find that Zero Emission Vehicles (ZEVs) penetrate into higher income groups at a faster rate than into lower income groups, which is intuitive and aligns with expectations. Interestingly, the relative income disparity in ZEV ownership shrinks over time across all scenarios, with a ZEV mandate coupled with declining battery cost leading to the greatest reduction in disparity of ZEV ownership by 2050. Federal, state, and local financial incentives influence the redistribution of ZEV uptake across income groups and contribute to narrowing income disparity. Vehicle transaction frequency and new versus used market dynamics are found to be important factors contributing to the income disparity.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2020

Facility Cybersecurity Framework Best Practices

Federal facilities are increasingly adopting automation and connecting to the Internet creating an energy-internet-of-things environment that converges operational technology (OT) and information technology (IT). Today's buildings increasingly weave together networked sensors and cyber and physical systems that enable data to be collected, aggregated, exchanged, stored and monetized in new ways. Building technological advances have created new energy technology, services, markets and value creation opportunities (e.g. transactive energy, two-way grid communications, machine learning, and increased use of renewable and distributed energy resources). But as larger data sets are being exchanged at faster speeds between an increasing number of OT systems, it becomes more difficult to protect the security of the data lifecycle and the physical equipment it interacts with. These challenges are especially difficult to overcome because the economic and environmental gain (interoperability, big data, social networks and ubiquitous information sharing) are driving these prominent trends in the digital age. Often cybersecurity is an afterthought. The U.S. Department of Energy’s (DOE) Federal Energy Management Program (FEMP) funded the Pacific Northwest National Laboratory (PNNL) to develop various cybersecurity tools, trainings, and reports to aid federal facility managers – and other building owners and operators – in better applying frameworks and lessons learned from the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF), risk management framework (RMF), DOE’s cybersecurity capability maturity model (C2M2), and a wide variety of industry best practices and guidance documents (i.e., NIST 800 series, Department of Defense United Facilities Criteria). This set of tools, collectively known as the FEMP Facility-Related Control System Cyber Toolkit (FRCS Cyber Toolkit)2, is focused on cybersecurity concerns from facility-related control systems and other operational technology (OT), such as industrial control systems (ICS). The FRCS Cyber Toolkit can be applied across six of the sixteen critical infrastructure sectors designated by the Department of Homeland Security, including government facilities, healthcare and public health, commercial facilities (e.g., public assembly, offices, lodging), financial services (e.g., banking and insurance), emergency services (e.g., fire and police stations), and information technology. With increasingly converged IT and OT systems, it is crucial to address OT cybersecurity considerations and assess how the seam of these two systems could impact the overall cybersecurity posture of a facility. The objective of this report is to provide an overview of the best possible method to use FRCS Cyber Toolkit (section 2.0) and distilled cybersecurity best practices for the federal facilities to address growing non-linear cyber threats (section 3.0). Recommendations in this document are aggregated from several NIST and other documents (see Appendix A for additional details).

97 MATHEMATICS AND COMPUTING↗

DOE OSTI2021

Facility Cybersecurity Framework Best Practices Version 2.0

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2021

Facility Cybersecurity Framework Best Practices Version 2.0

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2022

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↗

DOE OSTI2024

Transactive Energy Practices Survey

For nearly two decades, the idea of using market-based approaches in field deployments that coordinate the flexible operation of electricity customer assets has occupied the efforts of transactive energy practitioners. While the purported benefits of this distributed decision-making approach encourage transactive energy designs have been well explored, the practical aspects of implementing such a system to address real-world problems are just beginning to emerge. This report surveyed 24 field-deployed programs and interviewed experts instrumental in these deployments. The results of the survey and interviews reveal the diversity of designs and applications. They highlight the technical promise of the approaches as well as challenges with system integration, sustainable business strategy, and regulatory policy obstacles. Insights from the survey offer considerations to direct future effort and investment.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2025

Dynamic Line Rating Models and Their Potential for a Cost‐Effective Transition to Carbon‐Neutral Power Systems

Most transmission system operators (TSOs) currently use seasonally steady-state models considering limiting weather conditions that serve as reference to compute the transmission capacity of overhead power lines. The use of dynamic line rating (DLR) models can avoid the construction of new lines, market splitting, false congestions, and the degradation of lines in a cost-effective way. DLR can also be used in the long run in grid extension and new power capacity planning. In the short run, it should be used to help operate power systems with congested lines. The operation of the power systems is planned to have the market trading into account; thus, it computes transactions hours ahead of real-time operation, using power flow forecasts affected by large errors. In the near future, within a “smart grid” environment, in real-time operation conditions, TSOs should be able to rapidly compute the capacity rating of overhead lines using DLR models and the most reliable weather information, forecasts, and line measurements, avoiding the current steady-state approach that, in many circumstances, assumes ampacities above the thermal limits of the lines. Here, this work presents a review of the line rating methodologies in several European countries and the United States. Furthermore, it presents the results of pilot projects and studies considering the application of DLR in overhead power lines, obtaining significant reductions in the congestion of internal networks and cross-border transmission lines.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2024

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↗