Applying Retail Markets and Transactive Resources for Grid Flexibility

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Abstract

The electric grid faces strain driven by rapidly growing loads (for example, data centers, onshoring, and electrification), retiring dispatchable generation, and increasing intermittent renewables. Traditional utility mechanisms for managing customer resources, such as demand response (DR), do not provide 24/7 localized balancing. Large flexible loads such as data centers cannot allow direct outside dispatch control, which leaves utilities without an effective way to use edge flexibility. Local markets enable continuous and efficient integration of flexibility. Common Transactive Services (CTS) specifies an open messaging protocol for local energy markets at the feeder, neighborhood, campus, and building. Based on standard financial market semantics, CTS enables interoperable participation of edge devices, microgrids, and facility systems. Local markets solve distribution grid problems through local resource coordination while keeping customer information private. CTS can help to address: (1) distribution grid infrastructure, voltage, and reliability challenges, (2) dynamic trading of data centers' own energy generation and storage, (3) siting for storage and generation using local market history for improved investment decisions, and (4) adding market capability to a device, microgrid, or facility using CTS standard interactions and data structures. This note discusses grid challenges, the value of local markets, and the role of CTS. It then reviews next steps for deployment, regulator support, and technical work. It also presents key CTS semantics.

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Energy

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