The clarion call of Transactive Energy…

(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…

What do you think?

8 points

Written by DocAndersen

I am a long time blogger and technology poster.I focus on what is possible, but I also try to see what is coming. In recent years I have been focused on sharing the memories of my family, as part of my Family History Project.


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  1. Transactive Energy is achievable. It could be derived from natural sources of energy like the sun, the volcano, and the wind. I understand those raw sources of natural energy are being tapped now. Therefore, this TE is no longer a vision or a dream. It is now a reality. Isn’t it?

  2. This is something new that has just been built here over the last 2 years. It actually seems sad, where wheat and corn fields grew, we now have eyesore solar arrays taking up very high dollar real estate, because nearly everything here is considered waterfront. Our local power company ANEC is a co-operative, that powers the Del-Mar-Va peninsula. It has blown my mind, that since we always have Bayside or Seaside winds here, that they didn’t allow or want the wind turbine systems that Delse Energy had presented designs for. These could have been put in marshlands, so as not to take up agricultural production space, and have very little negative impact on the environment. Some decisions of Government from local up always seem counterproductive to the end goal of eliminating the need for fossil fuels.

    • So, the wind production systems are normally installed offshore. There are a number of them today in the MD-DW-VA area. They are normally a 1/4 mile offshore. The solar arrays that are being built actually add to the value of the land, they don’t detract.

  3. This concept has been done by a Jamesville Virginia local, in conjunction with ANEC Electric cooperative. He installed a home-made wind turbine generator, that he claims produces enough to fully power his home, and back-feed thru a meter that is received by ANEC who in turn issues him a small check for the power(so I’m told). People do need to understand, Electricity is relatively cheap so to speak, when we pay electric bills, we are paying for the infrastructure entailed, service equipment, and employees. Having a home based system that back-feeds the commercial grid, has none of the above, hence they only pay the calculated cost of the electricity provided. This is my understanding of such, and now my Counties here on the Eastern Shore have implemented a large scale solar farm system, including hundreds of acres of solar fields. These are being paid in part by ANEC cooperative members, who have some added to their bill every month , untill the system instalation costs are paid. Then these members will begin to reap the rewards of solar power. The sad part no one considered, is most of these solar farms are within close proximity to Salty Ocean Air, and storm spray, so they will be corroded out, like everything else made of Metals of all kinds here, and need complete replacement within 15 years or so, before they are even fully paid for. But at least they tried.

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