State of Play in Transactive Energy

In an article for Utility Week, Navigant Research looks at drivers and barriers for TE market readiness

There are many definitions for transactive energy (TE) but, simply put, TE is where any customer, regardless of size, can trade electricity within a power market. Navigant Research recently investigated market readiness for transactive energy.

In an article for Utility Week, Stuart Ravens, principal research analyst with Navigant Research, summarized the state of play in transactive energy.

While there are some significant barriers to TE — none more so than the fact it is not permitted in most markets — there are many compelling drivers. TE puts the customer at the heart of the electricity value chain, allowing them to decide when, at what price, and from whom they buy their power.

“This customer-centricity has seen a comparatively rapid warming of global regulators’ initial coolness to TE,” Stuart wrote.

Generating power closer to the point of consumption should reduce the need for expensive infrastructure investments and sets a framework where market signals, not infrastructure investments, can be used to help integrate distributed energy resources.

Despite significant hurdles, Ravens sees the biggest driver for TE in blockchain developments. Navigant Research anticipates that the first TE markets will appear in the next 5-10 years.

Read the full article

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