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Subject: Energy Interoperation Architecture

Following up on the Energy Interop May 12, 2010 discussions of the Energy Interoperation Architecture, I offer the following:


This diagram is from the Transactional Energy White Paper  posted at


with one minor change - the clarifying addition of the word "Commands" to the message types in the diagram.



Drawing in Energy Interoperation Architecture.jpg


In this diagram and in the White Paper, different Parties can take on any of the roles in the diagram.  All interactions are between Parties.  Parties include Utilities, DR Providers, Retail Energy Providers and Customers as well as operators of Generation, Storage, Transmission and Distribution, ISO Markets, and Exchanges.


Any Party can make a priced offer to any other Party.  If an agreement between two Parties is reached, then a transaction results.


Priced offers and Transactions can be for Option Transactions, as described in the White Paper.  An Option Transaction is an agreement by a Party to act in response to a Command from the other Party to exercise the option. 


In the case of Demand Response,  a customer may respond to an offer from a DR provider or an ISO and enter into a Option Transaction (register with a DR program).  The option transactions may be multi-level ( ISO to  DR provider to Customer) .  This sets up a chain-of-command.  When a DR Event (Command) is exercised, it is passed up the chain-of-command.  For an emergency curtailment signal, the obligation to respond and the chain-of-command might be imposed by regulators.


Ancillary Services are another example of Option Transactions where a Party agrees to respond to Commands from a System Operator.


While I advocate the efficiency and the fairness of priced offers and transactions, Energy Interop must provide for Commands that are a part of current and future markets.  Ideally Commands will have a diminishing role as the intelligence of the grid is improved.



Edward G. Cazalet, Ph.D.

101 First Street, Suite 552

Los Altos, CA 94022


cell: 408-621-2772




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