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Transactive Energy and Micro-Grids explained

(image courtesy of Solar City now Tesla).

Continuing my previous post series on Transactive Energy, I wanted to make sure there was a chance to clarify a couple of questions. First off, there are two distinct components of renewable energy that have to be considered. The first is the creation of a micro-grid. Micro-grids are simply The application of a simple rule. One power production system combined with a power consumption system. A solar or wind turbine in or around your home creates a micro-grid. You, as the owner of said micro-grid, can, in fact, choose at that point to sever your connection to the larger power grid. You can be independent.

The other option is, of course, moving from Micro-grid to Transactive Energy. You give up the option of being disconnected in the reality of Transactive Energy. The model now is that you produce energy in your Micro-grid. In that energy production, you have options.

  1. All excess energy (consumption – production = net excess production) can be sold to the power company.
  2. All excess energy can go to charging the battery system; then if there continues to be extra energy, it is sold to the power company.

The laws aren’t there yet to support the full model; the US states and many countries are thinking about the legal what and how of this.

Solar or wind turbines installed in or around your home help you the consumer crate a micro-grid. Energy production equals that generation system solar or wind. Energy consumer is your home. You have the option of making this a closed system. However, that means two things that people always seem to forget.

  1. If your system is obscured and you have gone offline, you may not have any power.
  2. If your system produces 12$% of the dryer you need, you are in a closed system wasting that energy.

Micro-Grids can be operated as either stand-alone (no connection to the power grid) or in transactive energy mode (selling excess back to the power grid).

Transactive Energy is the connection of your micro-grid to a backup system (the power company) and the market (Transactive Energy) where you can sell your excess power!

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What do you think?

Written by DocAndersen

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