A Tale of Two Visions: Designing a Decentralized Transactive Electric System


Conversations about distributed resources, the transactive grid, and the future of the electrical industry abound with terms like decentralized, disruptive, distribution system operator, and distribution marginal pricing. In this time of fast and dramatic modification, it is tempting to leap right to the attractive market style, utility business model, and rate-creating and regulatory framework issues and assume that the mundane operational realm where the laws of physics apply can kind itself out. Thus, it is not shocking that almost all industry futurists have not noticed the emergence of 2 clearly distinct visions or paradigms for a way a decentralized, transactive electric system with high penetration of distributed energy resources (DERs) might be designed to operate.

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