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Transactive Energy & Control

Pioneering the economics of energy on the smart grid

Our power system is changing. With significant growth in renewable energy resources, power generation is becoming more intermittent and distributed. And millions of smart sensors and meters are turning our traditional, one-way electricity delivery into a two-way "transactive" information-packed power grid.

Transactive Energy combines economics—how much an individual or entity who consumes power is willing to pay for energy when there is too much demand and not enough supply—and that consumer's preferences and lifestyle choices. These factors work together via smart devices that communicate with the energy market to make decisions on behalf of the consumer whether to pay higher energy costs during times when power use peaks or delay energy use to pay less and alleviate strain on the power grid.

PNNL pioneered the concept and philosophy of Transactive Energy. Since the late 1990s, our experience in smart grid research has provided insight into both the economic and engineering needs of the nation's electricity infrastructure and how its design impacts energy use and efficiency at varying scales. PNNL laid the groundwork for and demonstrated a choice-oriented model that incentivizes both consumers and distributors.

To learn more about Transactive Energy, see Frequently Asked Questions.

Successful tests have included:

Transactive Energy & Control

We're continuing to develop this approach with these projects:

  • Connected Homes: Activities are focused on advancing connected device methodologies in residential buildings.
  • Clean Energy and Transactive Campus: Launched in 2015, CETC tests transactive energy methods and technologies on multiple campuses. The project has developed or advanced innovations that include Transactive Coordination and Control, Automated Fault Detection and Diagnostics, and Intelligent Load Control, which is described in the video below.

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