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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↗

Automated Control of Transactive HVACs in Energy Distribution Systems

Heating, Ventilation, and Air Conditioning (HVAC) systems contribute significantly to a building’s energy consumption. In the recent years, there is an increased interest in developing transactive approaches which could enable automated and flexible scheduling of HVAC systems based on the customer demand and the electricity prices decided by the suppliers. Flexible and automated scheduling of the HVAC systems make it a prime source for participation in residential demand response or transactive energy systems. Therefore, it is of significant interest to identify an optimal strategy to control the HVAC systems. Here, reducing the energy cost while keeping the comfort level acceptable to the users, we argue that such a control strategy should consider both the energy cost and user comfort simultaneously. Accordingly, we develop the control strategy through the solution of an optimization problem that balances between the energy cost and consumer’s dissatisfaction. This optimization enables us to solve a decision-making problem through first price prediction and then choosing HVAC temperature settings throughout the day based on the predicted price, history of the price and HVAC settings, and outside temperature. More specifically, we formulate the control design as a Markov decision process (MDP) using deep neural networks and use Deep Deterministic Policy Gradients (DDPG)-based deep reinforcement learning algorithm to find the optimal control strategy for HVAC systems that balances between electricity cost and user comfort.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

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.

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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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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.

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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.

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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↗

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, ↗

Facility Cybersecurity Framework Best Practices Version 2.0

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.

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Facility Cybersecurity Framework Best Practices Version 2.0

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.

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Future energy infrastructure, energy platform and energy storage

Today fossil energy dominates energy consumption across the world. There has been an increasing momentum to reduce fossil energy consumption and increase renewable energy utilization to more than 70%. Such high penetrations of distributed renewable resources bring large uncertainty and complexity that cannot be easily handled by the current infrastructure. For the last two decades, telecommunication industry has gone through a similar transition from centralized to distributed systems, and more recently to platform approaches, which become the corner stone of today’s vibrant platform economy. Based on telecommunication history, we believe that a platform-based approach, called the energy platform, is a viable solution for addressing the renewable energy challenges. The energy platform consists of an array of computational algorithms, sensing and control technologies for key industry, energy generators and users to jointly manage and control the complex energy infrastructure. It includes the following key components: (1) the hardware and software to generate, store, control and transmit electricity/data (the energy cloud), (2) the digital platforms and tools for key energy producers, digital, service and communication industry to share the assets, participate in and manage the complex infrastructure, and for customers to participate in energy transactions, (3) the transaction platform for new service and business models. Additionally, the energy platform requires breakthroughs in large scale energy storage and many other areas including efficient power electronics, sensors and controls, new mathematical and computational tools, and deep integration of energy technologies and information sciences to control and stabilize such complex chaotic systems.

25 ENERGY STORAGE↗

A Transactive Approach for Service Restoration Utilizing Customer Load Flexibility and Grid-Edge Resources

This paper develops a transactive energy system model to restore electricity to customers in an isolated distribution system after an outage. The model engages a variety of customer types -- prosumers, flexible loads, critical/noncritical customers, and distributed generators -- as active participants in the restoration process. Unlike many existing transactive approaches, the proposed model is developed for service restoration and accounts for various customer types and their autonomy and privacy through an iterative approach to determine the optimal market price, while maintaining system-level power flow and voltage constraints. The advantages of the proposed approach are numerically validated on a modified IEEE 123-bus test system.

distributed energy resources↗

A Transactive Approach for Service Restoration Utilizing Customer Load Flexibility and Grid-Edge Resources: Preprint

This paper develops a transactive energy system model to restore electricity to customers in an isolated distribution system after an outage. The model engages a variety of customer types -- prosumers, flexible loads, critical/noncritical customers, and distributed generators -- as active participants in the restoration process. Unlike many existing transactive approaches, the proposed model is developed for service restoration and accounts for various customer types and their \textit{autonomy} and \textit{privacy} through an iterative approach to determine the optimal market price, while maintaining system-level power flow and voltage constraints. The advantages of the proposed approach are numerically validated on a modified IEEE 123-bus test system.

distributed energy resources↗

A Transactive Approach for Service Restoration Utilizing Customer Load Flexibility and Grid-Edge Resources

This paper develops a transactive energy system model to restore electricity to customers in an isolated distribution system after an outage. The model is developed to engage a variety of customer types - prosumers, flexible loads, critical/noncritical customers, and distributed generators - as active participants in the restoration process. Unlike many existing transactive approaches, the proposed model is developed for service restoration and accounts for various customer types and their autonomy and privacy through an iterative approach to determine the optimal market price, while maintaining systemlevel power flow and voltage constraints. The advantages of the proposed approach are numerically validated on a modified IEEE 123-bus test system.

distributed energy resources↗

Evaluating the effects of a low-carbon energy transition on existing U.S. fossil energy communities

On-going efforts and the growing movement to transition from our current energy systems towards low-carbon and renewable sources have uncovered a range of challenges and concerns communities may face under this transition. An understanding of the current relationships and dynamics within communities can offer critical insights that stakeholders, as well as decision and policy makers can use to better support and affect the outcome of these transitions. To support this need, the National Energy Technology Laboratory has been developing a data-driven framework to aid in the characterization of fossil energy communities across the U.S. and offer insights to comprehensively address energy transaction concerns by different stakeholder groups and various stages associated with a low-carbon energy system. This presentation will offer details on our current work to integrate multiple environmental, social, and economic data variables, as well as key trends and insights that are being used to characterize these communities at a local and regional scale. These insights will be used to evaluate with alternative opportunities, including, but not limited to, hydrogen, rare earth elements and critical minerals, and energy storage, that could be aid in the transition for these communities from conventional energy resources.

Bauer, Jennifer↗

Peer-to-Peer Energy Trading under Network Constraints Based on Generalized Fast Dual Ascent

We report the wide deployment of renewable energy resources, combined with a more proactive demand-side management, is inducing a new paradigm in both power system operation and electricity market trading, which especially boosts the emergence of the peer-to-peer (P2P) market. A more flexible local market mechanism is highly desirable in response to fast changes in renewable power generation at the distribution network level. Moreover, large-scale implementation of P2P energy trading inevitably affects the secure and economic operation of the distribution network. This paper presents a new P2P electricity trading framework with distribution network security constraints considered using the generalized fast dual ascent method. First, an event-driven local P2P market framework is presented to facilitate short-term or immediate local energy transactions. Then, the sensitivity analysis of nodal voltage and network loss with respect to nodal power injections is used to evaluate the impacts of P2P transactions on the distribution network, which ensures the secure operation of the distribution system. Thereby, the external operational constraints are internalized, and the cost of P2P energy trading can be appropriately allocated in an endogenous way. Moreover, a generalized fast dual ascent method is employed to implement distributed market-clearing efficiently. Finally, numerical results indicate that the proposed model could guarantee secure operation of the distribution system with P2P energy trading, and the solution method enjoys good convergence performance.

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