One of the things that are critical is the difference between what the components of the conversation are. In particular lately, I’ve been talking about renewable energy sources. That category represents any power source that does not require a fuel source directly. Solar power and wind power, as well as geothermal power all, exist independent of burning, using or leveraging a fuel. They are converting the fuel of the sun. Solar power represents a direct conversion of sunlight to power. Wind Turbines represents an indirect conversion of solar power to power again. Geothermal is a little tricker as to its connection to solar; it’s limited but still some.
Transactive Energy is none of these power sources. IT is the transaction system for allowing a home, business or city to produce more energy than it consumes and therefore receives compensation for that created energy.TE is both technology and legislation. Solar power and wind turbines may have legislation that impacts the ability of a home or business owner deploying the solution. TE is however different in that it represents the technology needed to have electricity produced “off grid” and then moved to “the grid.” The reality of the system today is that it can be difficult to compensate the homeowner or business owner for that produced energy.
From a legal perspective, the issue of Transactive Energy is coming to many governments soon. In part because more and more solar installs are out there. In part because we need to reduce the carbon impact of humanity on the world around us. The problem with power today is the transmission. It is projected that you will lose 33% or more of power during transmission. The further the distance, the greater the loss. The excess produced by anyone house is not a significant amount of power. That ultimately means that it shouldn’t be broadcast a great distance, That brings up another topic I’ve discussed that being Micro-Grids. The power grid represents the existing power structure with a geographic space. A micro-grid is a grid that directly links consumers and producers. In the case of solar or wind turbines producing more than can be consumed,d the value is creating a micro-grid that is a neighborhood. Sharing power amongst the houses of a neighborhood is a smaller transmission distance, also reducing the peak day loads on the power company.
More to come….