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Transactive Energy System Deployment Over Insecure Communication Links

Here, in this paper, the privacy and security issues associated with the transactive energy system (TES) deployment over insecure communication links are addressed. In particular, it is ensured that 1) individual agents’ bidding information is kept private throughout hierarchical market-based interactions; and 2) any extraneous data injection attack can be quickly and easily detected. An implementation framework is proposed to enable the cryptography-based enhancement of privacy and security for the deployment of any general hierarchical systems including TESs. Under the proposed framework, a unified cryptography-based approach is developed to achieve both privacy and security simultaneously. Specifically, privacy preservation is realized by an enhanced Paillier encryption scheme, where a block design is proposed to significantly improve computational efficiency. Attack detection is further achieved by an enhanced Paillier digital signature scheme, where a stamp-concatenation mechanism is proposed to enable detection of data replace and reorder attacks. Simulation results verify the effectiveness of the proposed cyber-resilient design for transactive energy systems. Note to Practitioners—This paper is motivated by addressing the issues of cyber resiliency for practically deploying transactive energy system (TES) but it is also applicable to the problem of enhancing the privacy and security for any general hierarchical control systems. TES is an emerging control approach that engages energy suppliers and customers through market operations and uses the price to optimally allocate energy resources. While it has been shown to be promising for power system applications, the underlying market-based interactions raise significant concerns of privacy (data leakage) and security (data tampering). However, existing TES works only focus on the coordination mechanism instead of privacy and security issues. This paper proposes a new cryptography-based TES design for practical deployment. Specifically, to protect privacy, individual supply and demand amounts to be exchanged are all encrypted in a particular way such that the original amounts cannot be inferred from the encrypted amounts, while the desired computation for setting the market clearing price can be carried out over the encrypted amounts, thus generating an encrypted result which, when decrypted, matches that of the same computation over the original amounts. To achieve security, for each exchanged data, its sender generates a particular digital signature which is exchanged together with the data. This enables the receiver to automatically detect the integrity by checking whether a mathematical relationship holds for the pair of data and signature. In our future research, we will investigate more challenging scenarios where some suppliers and customers themselves could be corrupted and purposely submit distorted amounts.

97 MATHEMATICS AND COMPUTING↗

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↗

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↗

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↗

Data for Grogan et al. "Bringing Hydrologic Realism to Water Markets"

This data set provides model output and post-processing files required to reproduce the results, tables, and figures in the paper "Bringing Hydrologic Realism to Water Markets" by Grogan et al. (in review). Other input data used in this study includes: Lisk, M., Grogan, D., Zuidema, S., Caccese, R., Peklak, D., Zheng, J., Fisher-Vanden, K., Lammers, R., Olmstead, S., & Fowler, L. (2023). Harmonized Database of Western U.S. Water Rights (HarDWR) (Version v1) [Data set]. MSD-LIVE Data Repository. https://doi.org/10.57931/2205619 Two models were used in this study: (1) The University of New Hampshire Water Balance Model WBM, and (2) a Water Market Model. Market model code and model output post-processing code that make use of these data can be found here Model output files are: 1. WBM output files: scenario[x]_wbm_output.zip Where [x] is one of 1, 2, 2a, 3, and 3a Each zipped directory contains 7 gridded NetCDF files, each reporting the 10-year annual average value of a given variable, in units of average mm/day: File Name: wbm_indUseGross_yc.nc; Description: Water withdrawals by industry (part of the urban sector) File Name: wbm_domUseGross_yc.nc; Description: Water withdrawals by the domestic sector (part of the urban sector) File Name: wbm_irrigationGross_yc.nc; Description: Water withdrawals for agriculture File Name: wbm_irrigationExtra_yc.nc; Description: Water withdrawals from unsustainable groundwater for agriculture File Name: wbm_indUseEvap_yc.nc; Description: Consumptive water use by industry File Name: wbm_domUseEvap_yc.nc; Description: Consumptive water use by the domestic sector File Name: wbm_irrigationNet_yc.nc; Description: Consumptive water use by agriculture The file full_cell_area.nc gives the area of each grid cell in km2, which is used for converting water depth to water volume. 2. Water market model output & post processing output Folder: marketTrdSummaries/ Description: Files in this folder are used as input to code 1_WelfareCalculation_actual_trades.R. They summarize historical water right trade transactions in each state. File Name: welfare_gain_by_state_sector.csv; Description: Welfare gains by state and sector, as shown in Figure 3F. Used in code Figure3.R and produced (as a .xlsx file) by code 2_DemandCurves_simulated_trades.R File Name: welfare_data_actual.rdata; Description: welfare gains by WMA from actual historical trades, as shown in Figure 3A. This data is the output of code 1_WelfareCalculation_actual_trades.R File Name: welfare_summary_simulated.xlsx; Description: Welfare gains by state as simulated by the market model in Scenario 1. Produced by code 2_DemandCurves_simulated_trades.R, and used in code 4_WelfareCalculation.R. File Name: welfare_summary_cutoffs.xlsx; Description: Welfare gains by state as simulated by the market model in Scenario 2. Produced by code 3_DemandCurves_simulated_trades_cutoffs.R, and used in code 4_WelfareCalculation.R. File Name: welfare_summary_cutoffs_SGMS.xlsx; Description: Welfare gains by state as simulated by the market model in Scenario 2a. Produced by code 3_DemandCurves_simulated_trades_cutoffs.R, and used in code 4_WelfareCalculation.R. File Name: welfare_data_actual.rdata; Description: Spatial data, actual historical welfare gains by WMA as shown in Figure 3A. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. File Name: welfare_data_simulated.rdata; Description: Spatial data, simulated Scenario 1 welfare gains by WMA as shown in Figure 3B. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. File Name: welfare_data_simulated_cutoffs.rdata; Description: Spatial data, simulated Scenario 2 welfare gains by WMA. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. File Name: welfare_data_simulated_cutoffs_SGMA.rdata; Description: Spatial data, simulated Scenario 2a welfare gains by WMA. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. Additional files are provided for efficient reproduction of tables and figures. These include: File Name: wma_thresold_dates_Scenario2(a).csv; Description: Wet vs. paper right threshold dates for each WMA. Shown in Figure 2A,B. Produced and used by code calculate_thresolds_Figure2.R File Name: WWRTradeBounds (directory); Description: Trade boundary shapefile required to reproduce Figure 3A-D. Used in code Figure3.R File Name: welfare_region_totals.csv; Description: Welfare gains for the entire study region, as shown in Figure 3E. Used in code Figure3.R File Name: Welfare_gain_by_state_sector.csv; Description: Welfare gains by state and sector, as shown in Figure 3F. Used in code Figure3.R and produced (as a .xlsx file) by code 2_DemandCurves_simulated_trades.R File Name: WECC_MERIT_5min_v3b_mask.nc; Description: Gridded file that identified which land grid cells are in the WBM model domain, used for processing in code Figure4.py File Name: Table_1.csv; Description: All data in Table 1, reproducible from WBM output files using code table_1.R

Economics↗

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↗

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↗

Q1-2024 Solar Cost Benchmarks

Each year, the U.S. Department of Energy’s (DOE) Solar Energy Technologies Office (SETO) and its national laboratory partners develop cost benchmarks for U.S. solar photovoltaic (PV) systems. These benchmarks track progress toward reducing solar costs and guide R&D priorities. Unlike typical studies that report only $/W, SETO uses intrinsic units (e.g., $/m² for mounting structures) to better capture how technology improvements such as module efficiency would impact system costs. This allows flexible modeling where inputs can vary significantly to assess cost sensitivity. Costs are reported in two ways: Minimum Sustainable Price (MSP): Long term, financially viable price under stable market conditions. Modeled Market Price (MMP): Actual market price, influenced by short term distortions such as tariffs or subsidies. Three national labs collect cost data from industry stakeholders, ensuring no duplication in outreach to stakeholders. Data reflects real transactions (primarily from Q1) and is weighted based on the number of sources per cost element. The PV System Cost Model (PVSCM) divides total installed system cost into eight categories: 1. Module (PV) 2. Inverter 3. Energy Storage System (ESS) 4. Structural BOS (SBOS) 5. Electrical BOS (EBOS) 6. Fieldwork 7. Office work 8. Other (developer/EPC costs) The first five are hardware costs, while the last three are soft costs. Each category includes fixed and variable cost components, where “size” depends on context (e.g., manufacturing capacity for modules vs. system capacity for installation costs). Variable costs are expressed using appropriate intrinsic units. The model reflects the owner’s upfront overnight capital cost, excluding tax credits. Tariffs and subsidies are treated as temporary market distortions affecting MMP but not MSP. PVSCM is implemented in Excel, where cost elements are aggregated into total system cost. Additional sheets handle unit conversions and operation & maintenance (O&M), with O&M costs levelized over the system’s lifetime.

14 SOLAR ENERGY↗

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↗

The design and implementation of EPL: An event pattern language for active databases

The growing demand for intelligent information systems requires closer coupling of rule-based reasoning engines, such as CLIPS, with advanced data base management systems (DBMS). For instance, several commercial DBMS now support the notion of triggers that monitor events and transactions occurring in the database and fire induced actions, which perform a variety of critical functions, including safeguarding the integrity of data, monitoring access, and recording volatile information needed by administrators, analysts, and expert systems to perform assorted tasks; examples of these tasks include security enforcement, market studies, knowledge discovery, and link analysis. At UCLA, we designed and implemented the event pattern language (EPL) which is capable of detecting and acting upon complex patterns of events which are temporally related to each other. For instance, a plant manager should be notified when a certain pattern of overheating repeats itself over time in a chemical process; likewise, proper notification is required when a suspicious sequence of bank transactions is executed within a certain time limit. The EPL prototype is built in CLIPS to operate on top of Sybase, a commercial relational DBMS, where actions can be triggered by events such as simple database updates, insertions, and deletions. The rule-based syntax of EPL allows the sequences of goals in rules to be interpreted as sequences of temporal events; each goal can correspond to either (1) a simple event, or (2) a (possibly negated) event/condition predicate, or (3) a complex event defined as the disjunction and repetition of other events. Various extensions have been added to CLIPS in order to tailor the interface with Sybase and its open client/server architecture.

Giuffrida, G.↗

Evaluation and Demonstration of Blockchain Applicability Framework

Blockchain technology has been gaining great interest from a variety of industry sectors, including financial, food processing, and power and energy markets. Realizing the strength of blockchain technology beyond the successful application in the cryptocurrency arena, researchers have been evaluating and using blockchain for applications such as supply chain management, transactive industry (both financial and energy), system integrity, device cybersecurity, identity management, and much more. One of the unique elements of the blockchain technology that made it such a captivating technology to researchers is its plethora of features. Some of the features include smart contracts, cryptocurrency and tokenizing, immutable distributed ledger, cryptographic hashing, and digital signature. In addition, there are multiple types of blockchains, such as permissioned/private and permissionless/public, and various consensus models, such as proof-of-work, proof-of-authority, proof-of-burn, and proof-of-stake. Therefore, it is often non-trivial to determine if an application requires a blockchain. If so, what kind of blockchain and consensus is most appropriate? This paper discusses the blockchain applicability framework (BAF), which was specifically designed with the purpose to answer those questions. BAF is divided into five domains, 18 subdomains, and about 100 controls. It is designed to ingest detailed user requirements to perform a weighted evaluation that is built on mathematical constructs to determine the ideal combination of blockchain that is appropriate for an application. Along with the core logical formulation of BAF, this paper depicts the efficacy of BAF through two use cases

Gourisetti, Sri Nikhil G.↗

A comparison study on trading behavior and profit distribution in local energy transaction games

With the increasing integration of distributed energy resources, localized peer-to-peer energy transactions are receiving more attention since they could absorb more distributed renewables locally and stabilize the power grid. To better study the trading behavior and provide guidance for a viable local market design, different game-theoretical frameworks including cooperative and non-cooperative games are established and compared here. For the cooperative grand coalition, the maximum social welfare is guaranteed, the Shapley value and bargaining based approaches are implemented for further profit redistribution. It is shown that the asymmetrical bargaining power can be critical in the final payment clearing and it is equivalent to the Shapley value allocation if prosumers bargain based on their marginal contributions. Non-cooperative trading is formulated by using a Stackelberg bilevel model in which the upper level has the privilege in internal price setting. However, system optimum is not obtained due to competition, and the selfish leader could take away 89% of the collective benefit by price-gap based arbitraging. Aiming for a long-lasting trading market, a virtual benevolent leader and a uniform price structure in which purchase price equals selling price are tested. Experimental results indicate that maximum social welfare and a fairer profit allocation can be achieved with a uniform price structure, regardless of the selfish or benevolent attitude.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Security-Constrained Unit Commitment for Electricity Market: Modeling, Solution Methods, and Future Challenges

This paper summarizes the technical activities of the IEEE Task Force on Solving Large Scale Optimization Problems in Electricity Market and Power System Applications. This Task Force was established by the IEEE Technology and Innovation Subcommittee to first review the state-of-the-art of the security-constrained unit commitment (SCUC) business model, its mathematical formulation, and solution techniques in solving electricity market clearing problems. The Task Force then investigated the emerging challenges of future market clearing problems and presented efforts in building benchmark mathematical and business models.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Potential for Transactive Energy to Improve the Provisioning of Grid Services from Batteries

This study assessed the degree to which transactive energy systems could help reduce or remove barriers to the deployment of battery energy storage, and realize the full potential of battery resources to supply needed services to the grid and fairly compensate various types of battery owners. To enable this assessment, typical battery deployments were characterized, along with energy markets, Federal Energy Regulatory Commission Order rulings and implementations, grid services, and current deployment barriers. Finally, this study analyzed the value that accrues to batteries supplying today’s grid services as a function of the participation models associated with three primary types of battery ownership: merchant-owned transmission-connected batteries; utility-owned distribution-connected batteries; and customer-owned behind-the-meter batteries. This provided both quantitative and qualitative assessments comparing opportunities for battery storage in business-as-usual and transactive energy scenarios.

24 POWER TRANSMISSION AND DISTRIBUTION↗

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↗

Transactive Energy Communications Interface Standards Landscape

Transactive energy represents distributed, optimal-seeking coordination approaches for managing the operation of large numbers of energy-related devices and systems. The concept assumes intelligent agents interact with other agents on behalf of their owners to balance the supply and demand of energy and coordinate other operation services in an electric system. They do this by exchanging value signals for services in near-term and forward time periods using market mechanisms. The technique is particularly applied to coordination of flexibility in operating distributed energy resources. The integration of large numbers of devices requires that they be able to connect and interoperate easily and reliably. Given the many technologies and solution providers integrating products, communications interfaces based on clear, unambiguous specifications with supporting tests require standardization and adoption by the community of system integrators. This report reviews the state of communications interface standards that show promise for transactive energy approaches to the coordination of distributed energy resources. It reviews promising standards to highlight challenges and gaps. It offers structured comparisons between standards and the features offered by their ecosystems of participants.

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↗

Potential Benefits in Remapping the Special Flood Hazard Area: Evidence from the U.S. Housing Market

A typical U.S. homebuyer's understanding of whether a property faces flood risk is based on whether the property is located inside the National Flood Insurance Program's (NFIP) Special Flood Hazard Area (SFHA). The SFHA boundary, however, may bias homebuyers’ perceptions of flood risk relative to unobserved true risk because the SFHA is an incomplete, and sometimes inaccurate, representation of flood hazards. Using a national dataset of property transactions, flood hazard data from the First Street Foundation, state-level measures of flood disclosure laws, and a spatially restricted triple-difference design, we distinguish capitalization effects of policy-driven (SFHA) versus quasi-objective (First Street) indicators of flood hazard. We identify these effects by assessing thousands of local spatial interactions between property SFHA designations, measures of quasi-objective flood hazard, and being in a state that mandates flood history disclosures. Being inside the SFHA generates a risk discount, but the signal is muted relative to underlying hazard exposure. Further, the SFHA signal can result in inefficient discounts for properties erroneously mapped in the SFHA. Disclosure requirements about flood history accentuate price effects for hazardous properties and result in more adequate risk internalization. In the absence of disclosures, however, we find either no or a weak risk signal for houses outside the SFHA that face flood hazard. Our results highlight potential benefits of updating SFHA boundaries to include all houses that may experience flooding, and argue in favor of requiring flood-related disclosures from sellers to improve the market's ability to internalize flood risk.

54 ENVIRONMENTAL SCIENCES↗