Transactive energy – a concept gathering momentum as an energy trading platform to support the growth of distributed energy resources and customer participation in the energy market, being led largely in New York under the Reforming the Energy Vision (REV) program, explains Chris King, Siemens’ Smart Grid Global Chief Regulatory Officer, in an Engerati studio interview at European Utility Week 2014.
Transactive energy challenges
Like all new concepts it comes with challenges and questions to be resolved, King says – although notably not the technology, which is “pretty much there.”
“It includes demand response management, virtual power plants, microgrids, and so on, but one challenge is how we bring these together and who does it. There are also some thorny regulatory issues such as how we provide the right incentives and cost recovery.”
King notes in his wide-ranging comments on issues such as the business model behind transactive energy, that the New York REV covers approximately 50 functions and he expects these would be introduced progressively, rather than all together.
“New York has recognized that times are changing and something needs to be done,” says King. The issue has also come up at the European Commission level, which is giving local recognition to it, he adds.