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Title: Transactive Systems Simulation and Valuation Platform Trial Analysis

Abstract

Transactive energy systems use principles of value to coordinate responsive supply and demand in energy systems. Work continues within the Transactive Systems Program, which is funded by the U.S. Department of Energy at Pacific Northwest National Laboratory, to understand the value of, understand the theory behind, and simulate the behaviors of transactive energy systems. This report summarizes recent advances made by this program. The main capability advances include a more comprehensive valuation model, including recommended documentation that should make valuation studies of all sorts more transparent, definition of economic metrics with which transactive mechanisms can be evaluated, and multiple improvements to the time-simulation environment that is being used to evaluate transactive scenarios.

Authors:
 [1];  [1];  [1];  [1];  [1];  [1];  [1];  [1];  [1];  [1];  [1]
  1. Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
Publication Date:
Research Org.:
Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
Sponsoring Org.:
USDOE
OSTI Identifier:
1379448
Report Number(s):
PNNL-26409
TE1204000; TRN: US1800562
DOE Contract Number:
AC05-76RL01830
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; ENERGY SYSTEMS; SIMULATION; COST; METRICS; transactive; simulation; valuation; control theory; economic theory; transactive control

Citation Formats

Widergren, Steven E., Hammerstrom, Donald J., Huang, Qiuhua, Kalsi, Karanjit, Lian, Jianming, Makhmalbaf, Atefe, McDermott, Thomas E., Sivaraman, Deepak, Tang, Yingying, Veeramany, Arun, and Woodward, James C. Transactive Systems Simulation and Valuation Platform Trial Analysis. United States: N. p., 2017. Web. doi:10.2172/1379448.
Widergren, Steven E., Hammerstrom, Donald J., Huang, Qiuhua, Kalsi, Karanjit, Lian, Jianming, Makhmalbaf, Atefe, McDermott, Thomas E., Sivaraman, Deepak, Tang, Yingying, Veeramany, Arun, & Woodward, James C. Transactive Systems Simulation and Valuation Platform Trial Analysis. United States. doi:10.2172/1379448.
Widergren, Steven E., Hammerstrom, Donald J., Huang, Qiuhua, Kalsi, Karanjit, Lian, Jianming, Makhmalbaf, Atefe, McDermott, Thomas E., Sivaraman, Deepak, Tang, Yingying, Veeramany, Arun, and Woodward, James C. Sat . "Transactive Systems Simulation and Valuation Platform Trial Analysis". United States. doi:10.2172/1379448. https://www.osti.gov/servlets/purl/1379448.
@article{osti_1379448,
title = {Transactive Systems Simulation and Valuation Platform Trial Analysis},
author = {Widergren, Steven E. and Hammerstrom, Donald J. and Huang, Qiuhua and Kalsi, Karanjit and Lian, Jianming and Makhmalbaf, Atefe and McDermott, Thomas E. and Sivaraman, Deepak and Tang, Yingying and Veeramany, Arun and Woodward, James C.},
abstractNote = {Transactive energy systems use principles of value to coordinate responsive supply and demand in energy systems. Work continues within the Transactive Systems Program, which is funded by the U.S. Department of Energy at Pacific Northwest National Laboratory, to understand the value of, understand the theory behind, and simulate the behaviors of transactive energy systems. This report summarizes recent advances made by this program. The main capability advances include a more comprehensive valuation model, including recommended documentation that should make valuation studies of all sorts more transparent, definition of economic metrics with which transactive mechanisms can be evaluated, and multiple improvements to the time-simulation environment that is being used to evaluate transactive scenarios.},
doi = {10.2172/1379448},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Sat Apr 01 00:00:00 EDT 2017},
month = {Sat Apr 01 00:00:00 EDT 2017}
}

Technical Report:

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  • This is a final report from a project funded by the U.S. Department of Energy to formulate and test a methodology for valuation of systems where transaction-based mechanisms coordinate the exchange of value between the system’s actors. Today, the principal commodity being exchanged is electrical energy, and such mechanisms are called transactive energy systems. The authors strove to lay a foundation for meaningful valuations of transactive systems in general, and transactive energy systems as a special case. The word valuation is used in many different ways. This report proposes a valuation methodology that is inclusive of many types of valuations.more » Many will be familiar with cost-benefit valuations, in which both costs and benefits are assessed to determine whether the assets are worth their cost. Another set of valuation methods attempt to optimize an outcome using available resources, as is the case with integrated resource planning. In the end, this report’s methodology was most influenced by and most resembles the integrated-resource-planning approach. Regardless, we wish to enforce the premise that all valuations are comparative and should clearly specify a baseline scenario. A long, annotated list of prior valuation studies and valuation methodologies that influenced this report has been appended to this report. Much research is being conducted today concerning transactive systems, but only a handful of transactive system mechanisms have been formulated and field tested. They are found to be quite diverse, and the documentation of the various mechanisms is uneven in breadth and quality. It is therefore not adequate to simply assert that a valuation scenario includes a transactive system; certain characteristics and qualities of the chosen transactive system mechanism must be defined and stated. The report lists and discusses most of the known transactive system mechanisms. It offers a set of questions that may be used to help specify important characteristics of the transactive system mechanisms, which should be conveyed along with other valuation results. A valuation methodology is proposed. Some abstraction is necessarily retained so that the methodology may be applied for the many purposes of today’s valuations and across grid, building, societal, and other domains. The report’s methodology advocates separation of operational timescales from long-term growth timescales. Operational models are defined as the models that inform impacts within the relatively short, often yearlong, operational time periods. Growth models define how the scenarios evolve from one operational period to the next (e.g., from year to year). We believe the recommended methodology is a critical step toward collaborative community platforms, where analysts and decision makers alike could contribute and borrow content within their expertise. The report then asks, what is unique about valuations when systems become coordinated by transactive systems? In answer, accurate valuations of transactive systems require careful adherence to the dynamic interaction between a system’s responsive elements and the system’s operational objectives. In every transactive system mechanism, elements respond to incentives that become revealed to them, and certain operational objectives become explicitly incentivized by the transactive system mechanism. The transactive system mechanisms define the important coupling between the responsive elements and the system’s objectives.« less
  • This document is the second of a two-part report. Part 1 reviewed several demonstrations of transactive control and compared them in terms of their payoff functions, control decisions, information privacy, and mathematical solution concepts. It was suggested in Part 1 that these four listed components should be adopted for meaningful comparison and design of future transactive systems. Part 2 proposes qualitative and quantitative metrics that will be needed to compare alternative transactive systems. It then uses the analysis and design principles from Part 1 while conducting more in-depth analysis of two transactive demonstrations: the American Electric Power (AEP) gridSMART Demonstration,more » which used a double –auction market mechanism, and a consensus method like that used in the Pacific Northwest Smart Grid Demonstration. Ultimately, metrics must be devised and used to meaningfully compare alternative transactive systems. One significant contribution of this report is an observation that the decision function used for thermostat control in the AEP gridSMART Demonstration has superior performance if its decision function is recast to more accurately reflect the power that will be used under for thermostatic control under alternative market outcomes.« less
  • Energy management in buildings is becoming more transactive. Pacific Northwest National Laboratory and the U.S. Department of Energy Building Technologies Office recently defined innovative use cases wherein market-like mechanisms are used to manage energy within buildings, between buildings, and between buildings and third-party entities, such as power utilities. A next step toward defining a set of transactive use cases in the buildings domain is to carefully diagram the corresponding business cases to capture details of transactions among all stakeholders and their economic value propositions. The principles of e3-value diagramming are applied in this report toward creating business value diagrams. Thesemore » principles are extended to be consistent with Universal Modeling Language use-case diagrams. Example diagrams are presented for a subset of buildings-domain use cases that were introduced in an earlier Pacific Northwest National Laboratory report. The diagrams are intended to clearly represent an understanding of the transactions through which individual entities accumulate value in their respective use cases, and the diagrams should therefore support economic valuation studies. The report reviews some of the foundational principles of e3 value and includes authors’ insights concerning the formulation of these diagrams using Universal Modeling Language as a more systematic modeling approach.« less
  • This report provides second-year project simulation results for the multi-year project titled “Evaluation of Variable Refrigeration Flow (VRF) system on Oak Ridge National Laboratory (ORNL)’s Flexible Research Platform (FRP).”