ISO/IEC TR 15067-3-8:2020
(Main)Information technology — Home Electronic System (HES) application model — Part 3-8: GridWise transactive energy framework
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.
Technologies de l'information — Modèles d'application du système électronique domotique (HES) — Partie 3-8: Titre manque
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ISO/IEC TR 15067-3-8
Edition 1.0 2020-09
TECHNICAL
REPORT
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Information technology – Home electronic system (HES) application model –
Part 3-8: GridWise transactive energy framework
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ISO/IEC TR 15067-3-8
Edition 1.0 2020-09
TECHNICAL
REPORT
colour
inside
Information technology – Home electronic system (HES) application model –
Part 3-8: GridWise transactive energy framework
INTERNATIONAL
ELECTROTECHNICAL
COMMISSION
ICS 35.200 ISBN 978-2-8322-8851-1
– 2 – ISO/IEC TR 15067-3-8:2020
ISO/IEC 2020
CONTENTS
FOREWORD . 5
INTRODUCTION . 7
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
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
– 4 – ISO/IEC TR 15067-3-8:2020
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
ISO/IEC 2020
INTERNATIONAL ELECTROTECHNICAL COMMISSION
____________
INFORMATION TECHNOLOGY –
HOME ELECTRONIC SYSTEM (HES) APPLICATION MODEL –
Part 3-8: GridWise transactive energy framework
FOREWORD
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The main task of IEC and ISO technical committees is to prepare International Standards.
However, a technical committee may propose the publication of a Technical Report when it
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Standard, for example "state of the art".
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:
Enquiry draft Report on voting
JTC1-SC25/2944/DTR JTC1-SC25/2965/RVDTR
Full information on the voting for the approval of this Technical Report can be found in the
report on voting indicated in the above table.
– 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.
IMPORTANT – The 'colour inside' logo on the cover page of this publication indicates
that it contains colours which are considered to be useful for the correct
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ISO/IEC 2020
INTRODUCTION
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.
– 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
addressed.
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.
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
– 10 – ISO/IEC TR 15067-3-8:2020
ISO/IEC 2020
INFORMATION TECHNOLOGY –
HOME ELECTRONIC SYSTEM (HES) APPLICATION MODEL –
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 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 [9], 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.
2 Normative references
There are no normative references in this document.
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminological databases for use in standardization at the following
addresses:
• IEC Electropedia: available at http://www.electropedia.org/
• ISO Online browsing platform: available at http://www.iso.org/obp
3.1
ancillary services
services necessary to support the transmission of capacity and energy from resources to
loads while maintaining reliable operation of the transmission service provider's transmission
system in accordance with good utility practice
Note 1 to entry: Ancillary services can include synchronized reserves, regulation and operating reserve, energy
imbalance (using market-based pricing), and the cost-based services of scheduling, system control and dispatch,
voltage control, and black start.
3.2
architecture
fundamental concepts or properties of a system in its environment embodied in its elements,
relationships, and in the principles of its design and evolution
Note 1 to entry: ISO/IEC/IEEE 42010:2011 describes architecture viewpoints, architecture frameworks and
architecture description languages for codifying conventions and common practices of architecture description.
ISO/IEC 2020
3.3
area control error
ACE
instantaneous difference between a balancing authority's net actual and scheduled
interchange, taking into account the effects of frequency bias and correction for meter error
3.4
automatic generation control
AGC
equipment that automatically adjusts generation in a balancing authority area from a central
location to maintain the balancing authority's interchange schedule plus frequency bias
Note 1 to entry: AGC can also accommodate automatic inadvertent payback and time error correction.
3.5
boundary deference
respect for ownership or system boundaries during interactions
3.6
congestion
characteristic of the transmission system produced by a constraint on the optimum economic
operation of the power system, such that the marginal price of energy to serve the next
increment of load, exclusive of losses, at different locations on the transmission system is
unequal
3.7
customer
anyone taking (using) electric energy
3.8
cyber-physical system
smart system that includes engineered interacting networks of physical and computational
components
3.9
demand response
DR
changes in electricity use by end-use customers (including automatic responses) from their
normal consumption patterns in response to changes in the price of electricity over time, or to
incentive payments designed to induce lower electricity use at times of high wholesale market
prices or when system reliability is jeopardized
3.10
distributed energy resource
DER
device that produces electricity and is connected to the electrical system, either "behind the
meter" in the customer's premises, or on the utility's primary distribution system
Note 1 to entry: A DER can use a variety of energy inputs including, but not limited to, liquid petroleum fuels,
biofuels, natural gas, solar, wind, and geothermal. Electricity storage devices can also be classified as DERs.
Some definitions also include DR as a form of DER.
3.11
distributed generation
DG
generation that is located close to the particular load that it is intended to serve
Note 1 to entry: General, but nonexclusive, characteristics of distributed generation include an operating strategy
that supports the served load, and interconnection to a distribution or sub-transmission system.
– 12 – ISO/IEC TR 15067-3-8:2020
ISO/IEC 2020
3.12
distribution system operator
DSO
entity responsible for planning and operational functions associated with a distribution system
that is modernized for high levels of distributed energy resources (DERs) and handles the
interface to the bulk system transmission system operator (TSO) at a locational marginal price
(LMP) node or transmission-distribution substation
Note 1 to entry: A range of other DSO models are under consideration in the industry.
3.13
framework
description of a system at a high organizational or conceptual level that provides neutral
ground upon which a community of stakeholders can discuss issues and concerns related to a
large, complex system
3.14
hedge
protection against financial loss due to price fluctuation by prearranged purchase or sale for
future delivery at an agreed-upon price
3.15
home energy management system
HEMS
system that regulates the energy within a household, controlling devices with the goal of
achieving optimal energy use and providing consumers with important information about their
energy consumption
3.16
interoperability
capability of two or more networks, systems, devices, applications, or components to
exchange and readily use information securely, effectively, and without intervention by the
user or operator
Note 1 to entry: In the context of the smart grid, systems are interoperable if they can exchange meaningful,
actionable information. They share a common meaning of the exchanged information, and that the information can
elicit agreed-upon types of responses.
3.17
market
area of economic activity in which buyers and sellers come together and the forces of supply
and demand affect prices
3.18
microgrid
electrical system that includes multiple loads and DERs that can be operated in parallel with
the broader utility grid or as an electrical island
3.19
photovoltaic power
PV
technology that turns sunlight directly into electricity
3.20
prosumer
person or entity who both consumes and produces
Note 1 to entry: This term was coined by Alvin Toffler. From a smart grid perspective, "prosumer" would apply to
DER situations in which the owner of electricity production or storage assets can also have a consumer relationship
with a utility, aggregator, or other energy services provider [10].
ISO/IEC 2020
3.21
regional transmission organization
RTO
entity that is responsible for managing all transmission facilities under its control, maintaining
grid stability, and matching electricity demand to supply
Note 1 to entry: RTO can be a regulated independent entity. An RTO performs the same functions as an ISO but
has added responsibilities for the transmission network.
3.22
reliability
measure of the ability of the system to continue operation while some lines or generators are
out of service
Note 1 to entry: Reliability deals with the performance of the system under stress.
3.23
renewable energy resources
energy resources that are naturally replenished.
Note 1 to entry: Renewable energy resources include biomass, hydroelectric, geothermal, solar, wind, ocean
thermal, wave action, and tidal action.
3.24
resilience
ability to resist failure and rapidly recover from a breakdown
Note 1 to entry: See [10].
3.25
supervisory control and data acquisition
SCADA
highly distributed systems used to control geographically dispersed assets, often scattered
over thousands of square kilometres, where centralized data acquisition and control are
critical to system operation
3.26
smart grid
utility power distribution grid enabled with information technology and two-way digital
communications networking
Note 1 to entry: A smart grid enables enhanced and automated monitoring and control of electricity distribution
networks for added reliability, efficiency, and cost-effective operations.
3.27
transaction
exchange or transfer of exchangeable products, services, rights, or funds
3.28
transactive energy
system of economic and control mechanisms that allows the dynamic balance of supply and
demand across the entire electrical infrastructure using value as a key operational parameter
3.29
transmission system operator
TSO
independent entity that coordinates regional transmission in a manner that is not
discriminatory against any transmission owners, operators, or users, and ensures a safe and
reliable electric system
– 14 – ISO/IEC TR 15067-3-8:2020
ISO/IEC 2020
3.30
value
quantitative economic value and non-quantitative values such as comfort, savings, or other
expressions of value that can come from a consumer
Note 1 to entry: Quantitative economic value can be stated in terms such as $/kWh.
Note 2 to entry: One of the challenges in implementing TE systems is to define mechanisms for "assignment of
value" to translate between qualitative expressions of value or engineering parameters that need to be stated in
terms of quantitative value.
3.31
value stream
sequence of activities required to design, produce, and provide a specific good or service,
and along which information, materials, and worth flow
3.32
virtual power plant
technical, operational, and economic construct that aggregates distributed supply and
demand resources in a manner that enables an operator to treat the DERs as if they were a
single power plant
4 Abbreviated terms
ACE area control error
AEP American Electric Power
AGC automatic generation control
BTM behind-the-meter
CAISO California Independent System Operator
CPUC California Public Utilities Commission
DER distributed energy resource
DERA DER aggregation
DG distributed generation
DR demand response
DSO distribution system operator
EIA U.S. Energy Information Administration
EV electric vehicle
FERC U.S. Federal Energy Regulatory Commission
GWAC GridWise Architecture Council
HVAC heating, ventilation, and air conditioning
IEC International Electrotechnical Commission
IEEE Institute of Electrical and Electronics Engineers
ISO independent system operator
LDA local distribution area
MISO Midwest USA independent System Operator
MUA multiple-use application
NEM net energy metering
P2P peer-to-peer
PFR primary frequency response
PJM PJM Interconnection
ISO/IEC 2020
PNWSGD Pacific Northwest Smart Grid Demonstration Project
PUC Public Utilities Commission
PV photovoltaic
RTO regional transmission organization
RTP real-time pricing
SCADA supervisory control and data acquisition
T&D transmission and distribution
TCS transactive control system
TE transactive energy
TEF TE Framework
TFS transactive feedback signal
TIS transactive incentive signal
TSO transmission system operator
UDC utility distribution company
ULS ultra-large scale
5 Context setting
5.1 Context for transactive issues
The intent of a TE framework is to provide the context for identifying and debating transactive
issues to advance actions that simplify the integration and monetization of distributed energy
resources within the complex power system. The framework recognizes that these objectives
can only be achieved when agreement is reached across many layers of concern. These
layers span from the details of the processes and technology involved to link systems
together, to the understanding of the information exchanged, the objectives of customers,
businesses, organizations, and economic and regulatory policy.
This document frames the topic by defining the meaning of the term "transactive energy" (TE),
presenting attributes of TE systems and enabling the discussion of methods for
accommodating increasing numbers of distributed energy resources within power systems.
The framework is then a useful tool for further development of the topic.
The concept of starting with a framework is based on ISO/IEC TR 15067-3-2 [5]. As illustrated
in Figure 2, a framework describes a system at a high organizational or conceptual level that
provides neutral ground upon which a community of stakeholders can discuss issues and
concerns related to a large, complex system.
– 16 – ISO/IEC TR 15067-3-8:2020
ISO/IEC 2020
Figure 2 – A framework provides high-level perspective
5.2 Report contents and organization
This document is organized in four main sections. Clause 5 summarizes the context and
motivation for TE approaches. The changing nature of the grid and the combination of
regulatory, policy, economic, and engineering challenges due to those changes are
summarized. Clause 6 refines the definition of TE and includes a set of associated attributes
that can be used to discuss different approaches and implementations of TE systems.
Clause 7 puts TE into a framework of regulatory and policy considerations, business models
and value creation, conceptual system architectures, and the general cyber-physical
considerations important in implementing TE applications. The intent throughout all of these
clauses is not to prescribe a specific TE solution. Rather, the intent is to provide a common
point of reference and encourage broad discussion of the concepts and approaches possible
for designing and implementing TE systems or applications. Annex A includes a template for
documenting TE system case studies. Annex B and Annex C contain two example case
studies.
5.3 The problem
A number of reports and studies have discussed the significant transformations occurring in
the electric power system [2][11][12][13][14][15][16][17]. These transformations include
growth in the use of renewable energy resources in the bulk power system, proliferation of
distributed energy resources of various capacities in both the transmission and distribution
(T&D) systems, an increasing number of installations of local renewable resources at end-use
points, and load growth through electrification of transportation an
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