Information technology — Home Electronic System (HES) application model — Part 3-8: GridWise transactive energy framework

ISO/IEC TR 15067-3-8:2020(E), which is a Technical Report, provides a conceptual framework for developing architectures and designing solutions related to transactive energy (TE). Transactive energy allows electricity generated locally by consumers using wind, solar, storage, etc., at homes or buildings to be sold into a competitive market. This document provides guidance for enhancing interoperability among distributed energy resources involved in energy management systems at homes and buildings. It addresses gaps identified as problematic for the industry by providing definitions of terms, architectural principles and guidelines, and other descriptive elements that present a common ground for all interested parties to discuss and advance TE. This document builds upon ISO/IEC 15067-3, with technology to accommodate a market for buying and selling electricity generated centrally or locally by consumers. The energy management agent (EMA) specified in ISO/IEC 15067-3 can represent the customer as a participant in TE. Transactive energy is important for achieving electric grid stability as power from renewable sources such as wind and solar fluctuates with time and weather.

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ISO/IEC TR 15067-3-8
Edition 1.0 2020-09

Information technology – Home electronic system (HES) application model –
Part 3-8: GridWise transactive energy framework

ISO/IEC TR 15067-3-8:2020-09(en)

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ISO/IEC TR 15067-3-8

Edition 1.0 2020-09





Information technology – Home electronic system (HES) application model –

Part 3-8: GridWise transactive energy framework




ICS 35.200 ISBN 978-2-8322-8851-1

  Warning! Make sure that you obtained this publication from an authorized distributor.

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– 2 – ISO/IEC TR 15067-3-8:2020
 ISO/IEC 2020
1 Scope . 10
2 Normative references . 10
3 Terms and definitions . 10
4 Abbreviated terms . 14
5 Context setting . 15
5.1 Context for transactive issues . 15
5.2 Report contents and organization . 16
5.3 The problem . 16
5.4 Time scales . 18
5.5 Economic/market context . 19
5.6 Grid control systems context . 20
6 Transactive energy . 22
6.1 Transition from central power generation . 22
6.2 Transactive energy definition . 23
6.3 Transactive energy attributes . 23
6.4 Transactive energy principles . 24
6.5 Evolution of the grid and its effects on transactive energy . 25
6.6 Strata of transactive energy . 26
7 Framework . 27
7.1 The elements of transactive energy . 27
7.2 Policy and market design . 28
7.3 Business models and value realization . 32
7.3.1 Overview . 32
7.3.2 Overview of DER services and technical capabilities . 33
7.3.3 DER services and values recognized today . 35
7.3.4 DER values not yet recognized and quantified . 39
7.3.5 Transactive markets and peer-to-peer transactions . 42
7.3.6 Distribution system operator . 42
7.3.7 Distribution system operator models . 42
7.3.8 Summary: redefining the value of the grid . 44
7.4 Conceptual architecture guidelines . 44
7.4.1 Creating a conceptual architecture . 44
7.4.2 Guiding architectural principles . 45
7.4.3 Scope of the conceptual architecture for transactive energy . 46
7.4.4 Organizing paradigms . 47
7.5 Cyber-physical infrastructure . 50
7.5.1 Two cyber-physical networks . 50
7.5.2 Understanding the electricity grid . 50
7.5.3 Hierarchy of node levels . 53
7.5.4 Node characteristics and responsibilities . 54
7.5.5 Transaction train . 55
Annex A (informative) Case studies . 58
A.1 Use of case study template . 58

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ISO/IEC TR 15067-3-8:2020 – 3 –
 ISO/IEC 2020
A.2 Case study template . 58
A.2.1 Title of the case study. 58
A.2.2 Case study characteristics and objectives . 58
A.2.3 Transactive energy attributes . 58
A.2.4 Participating agencies and organizations . 60
A.2.5 References for case study . 60
Annex B (informative) Pacific Northwest Smart Grid Demonstration . 61
B.1 Project characteristics and objectives . 61
B.2 Transactive energy attributes . 61
B.2.1 Architecture . 61
B.2.2 Extent . 62
B.2.3 Transacting parties . 62
B.2.4 Transaction . 62
B.2.5 Transacted commodities . 62
B.2.6 Temporal variability . 63
B.2.7 Interoperability . 63
B.2.8 Value discovery mechanisms . 63
B.2.9 Value assignment . 63
B.2.10 Alignment of objectives . 64
B.2.11 Stability assurance . 64
B.3 Participating agencies and organizations . 64
B.4 References for case study . 64
Annex C (informative) American Electric Power gridSMART smart grid demonstration . 65
C.1 Project characteristics and objectives . 65
C.2 Transactive energy attributes . 65
C.2.1 Architecture . 65
C.2.2 Extent . 65
C.2.3 Transacting parties . 65
C.2.4 Transactions . 65
C.2.5 Transacted commodities . 66
C.2.6 Temporal variability . 66
C.2.7 Interoperability . 66
C.2.8 Value discovery mechanisms . 66
C.2.9 Value assignment . 67
C.2.10 Alignment of objectives . 67
C.2.11 Stability assurance . 67
C.3 Participating agencies and organizations. 67
C.4 References for case study . 68
Bibliography . 69

Figure 1 – Overview of GWAC transactive energy reference documents . 9
Figure 2 – A framework provides high-level perspective . 16
Figure 3 – Electric power system timelines . 19
Figure 4 – Growing complexity of electric power system control . 21
Figure 5 – Stages of adoption of DER . 25
Figure 6 – GWAC Stack with strata of transactive energy . 26
Figure 7 – Transactive energy stakeholders . 30

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 ISO/IEC 2020
Figure 8 – Services available from DERs . 33
Figure 9 – Architecture layers and iteration levels . 45
Figure 10 – The GridWise Architecture Council's interoperability framework . 47
Figure 11 – NIST Smart Grid Conceptual Model . 48
Figure 12 – Grid Vision 2050 transactive energy abstraction model . 49
Figure 13 – Integrated Control Abstraction Stack/GWAC Stack model. 49
Figure 14 – Transaction train model . 56

Table 1 – Characteristics of transactive energy . 23
Table 2 – Challenges faced from interoperability and transactive perspectives . 27
Table 3 – Summary of node characteristics and responsibilities . 55

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ISO/IEC TR 15067-3-8:2020 – 5 –
 ISO/IEC 2020


Part 3-8: GridWise transactive energy framework

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ISO/IEC TR 15067-3-8, which is a Technical Report, has been prepared by subcommittee 25:
Interconnection of information technology equipment, of ISO/IEC joint technical committee 1:
Information technology.
The text of this Technical Report is based on the following documents:
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report on voting indicated in the above table.

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– 6 – ISO/IEC TR 15067-3-8:2020
 ISO/IEC 2020
This document has been drafted in accordance with the ISO/IEC Directives, Part 2.
A list of all parts in the ISO/IEC 15067 series, published under the general title Information
technology – Home electronic system (HES) application model, can be found on the IEC and
ISO websites.

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ISO/IEC TR 15067-3-8:2020 – 7 –
 ISO/IEC 2020
Over the past two decades, the use of demand response and other flexible distributed
resources for electricity market efficiency and grid reliability has grown dramatically.
Customers' loads, generation, and storage will impact the management of an increasingly
unpredictable power system. Because of this growth in flexible distributed energy resources
deployment, attention is being devoted to addressing not only the economics of the electricity
grid, but also the control system implications for grid reliability. This has led to a focus on an
area of activity called "transactive energy". Transactive energy (TE) refers to the use of a
combination of economic and control techniques to improve grid reliability and efficiency.
These techniques can also be used to optimize operations within a customer's facility.
The motivations for employing TE systems come from the increasing diversity of resources
and components in the electric power system and the inability of existing practices to
accommodate these changes. Expanded deployment of variable generation on the bulk power
side, distributed energy resources throughout the system, and new intelligent load devices
and appliances on the consumption side necessitate new approaches to how electric power is
managed and delivered, and the associated economic and business models. Conventional
wisdom is that once variable generation resources reach 30 %, the current control systems for
the grid will be simply inadequate [1] .
Transactive energy systems provide a way to maintain the reliability and security of the power
system while increasing efficiency by coordinating the activity of the growing number of
distributed energy resources. These multiple goals pose a multi-objective control and
optimization challenge. This is one reason why TE embraces both the economics and the
engineering of the power system. The same considerations outlined for the electricity grid
apply to building energy systems and other local energy systems such as microgrids [2].
In the past, these systems could be considered simply end nodes on the physical power grid
that act as simple "dumb" loads. But they are becoming increasingly more interactive with the
grid, providing intelligent load, storage, and generation sources. They now need to be
considered integral and active components of the grid as a whole. Building energy systems
account for a majority of the electric power consumed in the United States. For example, the
U.S. Energy Information Administration (EIA) estimated that buildings (residential and
commercial) would account for around 70 % of electricity consumption in the United States in
2014 [3]. Recent EIA data shows that this projection was correct and electricity use in
buildings is currently just over 70 % each year [4]. From the grid perspective, buildings are
examples of loads that will be integral, active components of the end-to-end electric power
system. Within buildings, the same need exists to achieve similar economic and reliably
optimized solutions to manage energy and potentially to realize new revenue streams through
participation in markets related to electric power systems. The growing adoption of electric
vehicles presents a new class of controllable loads, and possibly even generating loads, that
can interact with the grid.
Asset owners, system operators, and other economic entities involved in the generation,
transmission, and use of electric power all have a stake in a reliably efficient power system
envisioned with the use of TE. There is a clear need to align value streams for all of these
parties by using incentives for participation in an actively managed system. This document
describes the considerations and basic elements for all stakeholders. This provides an
opportunity for discussing how various approaches can enable alignment of value streams
and the creation of sustainable business models.
 Numbers in square brackets refer to the Bibliography.

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– 8 – ISO/IEC TR 15067-3-8:2020
 ISO/IEC 2020
Regulatory, policy, and business issues frame the discussion about the functional
characteristics of TE systems. From these characteristics, this document also presents a
conceptual or reference architecture illustrating the principal functional entities and
relationships. The intent of this material is not to define a specific solution, but to describe the
TE environment and to enable comparisons among various approaches.
This document further examines the practical dimensions of implementing TE systems by
considering the cyber-physical system aspects. Here, too, this document avoids prescribing
specific solutions, but rather identifies gaps and technology challenges that need to be
There have also been several new TE pilots proposed and implemented, and panels on TE
can be found at most conferences, including technology-focused conferences such as
Institute of Electrical and Electronics Engineers (IEEE) Innovative Smart Grid Technologies
and industry conferences such as DistribuTECH, showing considerable interest in this topic.
TE is also a frequent topic in technical journals, magazines, and blogs. These varied
platforms for discussing TE indicate a broad acceptance of the possibilities offered and
interest in ways to apply TE by service providers, utilities, and regulators.
The intent of the TE framework is to promote discussion at the conceptual level of common
features or elements of specific models, designs, or implementations of TE systems. At this
conceptual level, the framework is intended to be broad and overarching.
In promoting broader discussion, multiple diverse stakeholders need to be considered.
Consequently, TE involves contributions from multiple disciplines spanning both economics
and engineering. The implications of the potential new approaches for managing and
controlling electric power systems call for a broad involvement of economists, regulators,
policy makers, vendors, integrators, utilities, researchers, end-consumers such as building
owner-operators, and other stakeholders. The diversity of thought provided by multiple
viewpoints is important to achieving a framework that addresses the variety of perspectives
and needs these stakeholders bring to the table.
A framework is a method and a set of supporting tools that can be used for developing an
architecture. The TE framework is a tool that can be used for developing a broad range of
different architectures for implementing transactive techniques. This document discusses
approaches for designing a transactive system in terms of a set of building blocks, and for
showing how the building blocks fit together.
The United States Department of Energy has supported the GridWise® Architecture Council
(GWAC) in specifying a conceptual framework for developing architectures and designing
solutions related to TE. The goal of this effort is to encourage and facilitate collaboration
among the many stakeholders involved in the transformation of the power system and thereby
advance the practical implementation of TE. The GWAC developed this document to provide
definitions of terms, architectural principles and guidelines, and other descriptive elements
that present a common ground for all interested parties to discuss and advance TE.
In creating the TE framework (this document), the authors presume an audience with a good
understanding of interoperability, familiarity with ISO/IEC TR 15067-3-2 [5], and knowledge of
energy markets and associated business models. People with this level of background should
be reasonably able to understand the proposed ideas, critically review them, and participate
in reworking or refining the framework so that it becomes a shared creation with tools that
propagate and that serve the diverse smart grid community. This document covers the topic of
TE at an abstract, conceptual level without prescribing specific implementations. The
audience for this document includes policy makers, regulators, vendors, utilities, researchers,
practitioners, and end-use asset owners.
 GridWise is a registered trademark of Gridwise, Inc. This information is given for the convenience of users of
this document and does not constitute an endorsement by IEC or ISO.

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ISO/IEC TR 15067-3-8:2020 – 9 –
 ISO/IEC 2020
In addition to this document, the GWAC produced a TE Decision Maker's Checklist [6] and a
TE Roadmap (ISO/IEC 15067-3-7) [7]. Each document is designed for a different audience
and each provides a different perspective on what transactive systems are, how they will
evolve, and necessary policy considerations (see Figure 1). In addition, the Smart Grid
Interoperability Panel (now Smart Electric Power Alliance) produced a TE Landscape
Scenarios white paper presenting six high-level operational scenarios [8]. Collectively, these
explore TE interactions and provide examples where TE systems produce value.

Figure 1 – Overview of GWAC transactive energy reference documents

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– 10 – ISO/IEC TR 15067-3-8:2020
 ISO/IEC 2020

Part 3-8: GridWise transactive energy framework

1 Scope
This part of ISO/IEC 15067, which is a Technical Report, provides a conceptual framework for
developing architectures and designing solutions related to transactive energy (TE).
Transactive energy allows electricity generated local

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