(images courtesy of the NIST Smart Cities Conference).
More than a year ago, on a different blog site, I posted a blog about the technology topic Transactive Energy. What, you may ask is Transactive Energy? It is an interesting topic to consider. The first and probably easiest answer is that it represents power production outside of the traditional power grid. That would be wind generators, solar or geothermal energy production systems designed to power one house or home. Transactive Energy could also apply to a single building or building complex as well. It is the production of energy locally, with the existing power company providing a backup power system.
In many cases, the power produced by a solar or wind generator is greater than what is consumed during the production hours, by the home. That extra energy either goes to a battery and is consumed later or, is pushed back to the power grid. Today, the second option isn’t available. There isn’t a concept in the existing grid of being able to generate energy locally and push that energy back to the power company. That would simply be not feasible today. In part, because the amount of energy produced, the number of producers and the infrastructure of the power system don’t support that concept today.
Tomorrow though, we have a different situation. This article is the first in my series, introducing the concept of Transactive Energy. Let’s start with the home. You decide to install a solar array on your roof. They come, install panels and wire your house for that. Now, you have a solar powered house during the daylight hours. In fact, when the sun shines, you have a micro-grid. The overall massive US, European, Asian and so on Power Grid is a national resource. A micro-grid allows power to move within your house. There are rules for a Micro-Grid, one of which is you have to be producing power locally. In the future, you will be able to connect to the power company (emergencies and power backup). The cost of your monthly power would be the amount of electricity you sell back to the grid (that they then distribute to other people in your neighborhood). Then Transactive Energy is real, for now, it is more of a dream.
More to come…