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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. 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 650-949-5274 cell: 408-621-2772 |
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