Valuation diagramming and accounting of transactive energy systems

Abstract

Transactive energy (TE) systems support both economic and technical objectives of a power system including efficiency and reliability. TE systems utilize value-driven mechanisms to coordinate and balance responsive supply and demand in the power system. Economic performance of TE systems cannot be assessed without estimating their value. Estimating the potential value of transactive energy systems requires a systematic valuation methodology that can capture value exchanges among different stakeholders (i.e., actors) and ultimately estimate impact of one TE design and compare it against another one. Such a methodology can help decision makers choose the alternative that results in preferred outcomes. This paper presents a valuation methodology developed to assess value of TE systems. A TE use-case example is discussed, and metrics identified in the valuation process are quantified using a TE simulation program.