Transactive Incentive Signals to Manage Energy Consumption
December 23, 2021
Energy Research and Development (500)
Electric Program Investment Charge - EPIC
Girish Ghatikar, Alekhya Vaddiraj
In California, thetransitionfrom centralized to distributed energy generation andthehighamountof variable renewable energy generationarekey driversfor thedynamic management ofthefuture electric grid.Withoutexpanded balancingof demandprovided bystrategies such asdemand response resourcesthatrespondtoreal-timesystem needs, the systemwide integration ofvariable renewable energycouldfurther increase system costs.Accessingthesystem-and market-based economicsignalson the electric gridenables stakeholdersto leverage flexibility from distributed energy resources and market systemsandsupportefficient grid operationsto assist transactiveloadmanagement.
This projectproposed atransactiveincentivesignal tomanageenergyconsumption (TIME) system design that combines real-time system information with load forecasts and distributed generation production. The TIME system calculates and communicates an economicincentive, orprice signal,fordistributed energy resourcesthat reflects electric system needs.Thestudydevelopedandput into operation the TIME systemin California’s wholesale and retaildemand responsemarkets. The project team alsoidentifiedresearch recommendations and opportunitiesto moveCalifornia’sdemandand gridflexibilityvisionforward.Early evidencesuggests that demand forautomation technologiesis triggered when customers are provided a reasonable value proposition fordemand response.Atransactive load managementstrategy can play acrucialrole ineconomically motivatingcustomers to engagetheirdemand-side resourcesto enablemoreefficient integration of variable renewable generation,improveelectricity reliability,andpotentiallyvaluetechnologyapplications.Practical applications must developintegrated grid models and value assessmentsthat include grid operators and customers.