Basics

Transactive Energy and Farm to Plug

I just got back from the Third International Conference and Workshop on Transactive Energy in Portland. There is wide consensus on the inevitability of transactive energy even as there are struggles as to how to get there.

Transactive energy was initially conceived of as a way to set spot market prices for electric energy (power) during times of peak demand or temporary supply shortfall. Transactive energy is based on the path-breaking research of Clearwater and Huberman at the Xerox Palo Alto Research Center (PARC) published in 1993. At PARC, they created moment-by-moment thermal markets to manage data center cooling; an agent on each server bid for the cooling it needed. This approach eliminated hot spots and reduced energy costs even as it eliminated the need to develop ever more complex control and sensing strategies.

Distributed energy makes the problems of effective grid operation worse. Distributed energy refers to the developing model in which every node on the grid is potentially a power source as well as a power user, driven largely by renewable energy such as solar photovoltaics (PV) and wind. Distributed energy changes the centrally managed, essentially hub-and-spoke distribution model in which energy flows down into what is potentially a two-way peer-to-peer network over the same infrastructure. Sites which contain Distributed Energy Resources (DER) can choose whether or not to come to market at any moment. Transactive energy is the developing means to manage this growing complexity.

Distributed energy is local, so distributed energy markets (and prices) must be local. Traditional local prices in power, referred to as locational marginal pricing (LMP) or nodal pricing is based on physical limits of the transmission system—a single bottleneck can affect all “downstream” points. LMP can be set centrally, calculated based on line physics and historical use. DER potentially places the power sources downstream of the congestion, and alongside the power customers. Nodes containing DER can decide whether the energy available is used to support the grid or internal purposes. Only actual markets and set clearing prices for DER.

There is no effective ownership of DER without local storage. Without local storage, grid nodes are always price-takers. Grid operators have a strong and legitimate interest in throttling how much DER is dumped onto the grid at any moment. Without local storage, grid operators must be able to turn off DER, i.e., set when a node can come to market. Even if a node invests capital in DER asset, if a third party determines what prices the node must take for the product of that asset, and controls when that asset can come to market, then the owners of that node cannot be said to own the asset.

Local markets will not really work without local storage. Local storage is necessary to create actual economic ownership of DER.

The best use for DER is and will always be local consumption. A building need not be Net Zero Energy (NZE) to consume power locally first. Use energy locally first. The next best use for DER is to store energy locally, perhaps for later consumption on site. Any excess, or any deficits in local power can then be made up through market operations. This is the essence of the new power movement, sometimes called Farm-to-Plug.

Action of Second Continental Congress, July 4, 1776

The unanimous Declaration of the thirteen United States of America

WHEN in the Course of human Events, it becomes necessary for one People to dissolve the Political Bands which have connected them with another, and to assume among the Powers of the Earth, the separate and equal Station to which the Laws of Nature and of Nature’s God entitle them, a decent Respect to the Opinions of Mankind requires that they should declare the causes which impel them to the Separation.

WE hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the Pursuit of Happiness — That to secure these Rights, Governments are instituted among Men, deriving their just Powers from the Consent of the Governed, that whenever any Form of Government becomes destructive of these Ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its Foundation on such Principles, and organizing its Powers in such Form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient Causes; and accordingly all Experience hath shewn, that Mankind are more disposed to suffer, while Evils are sufferable, than to right themselves by abolishing the Forms to which they are accustomed. But when a long Train of Abuses and Usurpations, pursuing invariably the same Object, evinces a Design to reduce them under absolute Despotism, it is their Right, it is their Duty, to throw off such Government, and to provide new Guards for their future Security. Such has been the patient Sufferance of these Colonies; and such is now the Necessity which constrains them to alter their former Systems of Government. The History of the present King of Great- Britain is a History of repeated Injuries and Usurpations, all having in direct Object the Establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid World.

HE has refused his Assent to Laws, the most wholesome and necessary for the public Good.

HE has forbidden his Governors to pass Laws of immediate and pressing Importance, unless suspended in their Operation till his Assent should be obtained; and when so suspended, he has utterly neglected to attend to them.

HE has refused to pass other Laws for the Accommodation of large Districts of People, unless those People would relinquish the Right of Representation in the Legislature, a Right inestimable to them, and formidable to Tyrants only. 

HE has called together Legislative Bodies at Places unusual, uncomfortable, and distant from the Depository of their public Records, for the sole Purpose of fatiguing them into Compliance with his Measures. 

HE has dissolved Representative Houses repeatedly, for opposing with manly Firmness his Invasions on the Rights of the People. 

HE has refused for a long Time, after such Dissolutions, to cause others to be elected; whereby the Legislative Powers, incapable of the Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the Dangers of Invasion from without, and the Convulsions within.

HE has endeavoured to prevent the Population of these States; for that Purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their Migrations hither, and raising the Conditions of new Appropriations of Lands.

HE has obstructed the Administration of Justice, by refusing his Assent to Laws for establishing Judiciary Powers.

HE has made Judges dependent on his Will alone, for the Tenure of their Offices, and the Amount and Payment of their Salaries.

HE has erected a Multitude of new Offices, and sent hither Swarms of Officers to harrass our People, and eat out their Substance.

HE has kept among us, in Times of Peace, Standing Armies, without the consent of our Legislatures.

HE has affected to render the Military independent of and superior to the Civil Power.

HE has combined with others to subject us to a Jurisdiction foreign to our Constitution, and unacknowledged by our Laws; giving his Assent to their Acts of pretended Legislation:

FOR quartering large Bodies of Armed Troops among us; 

FOR protecting them, by a mock Trial, from Punishment for any Murders which they should commit on the Inhabitants of these States: 

FOR cutting off our Trade with all Parts of the World: 

FOR imposing Taxes on us without our Consent: 

FOR depriving us, in many Cases, of the Benefits of Trial by Jury: 

FOR transporting us beyond Seas to be tried for pretended Offences: 

FOR abolishing the free System of English Laws in a neighbouring Province, establishing therein an arbitrary Government, and enlarging its Boundaries, so as to render it at once an Example and fit Instrument for introducing the same absolute Rules into these Colonies:

FOR taking away our Charters, abolishing our most valuable Laws, and altering fundamentally the Forms of our Governments:

FOR suspending our own Legislatures, and declaring themselves invested with Power to legislate for us in all Cases whatsoever. 

HE has abdicated Government here, by declaring us out of his Protection and waging War against us.

HE has plundered our Seas, ravaged our Coasts, burnt our Towns, and destroyed the Lives of our People.

HE is, at this Time, transporting large Armies of foreign Mercenaries to compleat the Works of Death, Desolation, and Tyranny, already begun with circumstances of Cruelty and Perfidy, scarcely paralleled in the most barbarous Ages, and totally unworthy the Head of a civilized Nation. 

HE has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the Executioners of their Friends and Brethren, or to fall themselves by their Hands. 

HE has excited domestic Insurrections amongst us, and has endeavoured to bring on the Inhabitants of our Frontiers, the merciless Indian Savages, whose known Rule of Warfare, is an undistinguished Destruction, of all Ages, Sexes and Conditions.

IN every stage of these Oppressions we have Petitioned for Redress in the most humble Terms: Our repeated Petitions have been answered only by repeated Injury. A Prince, whose Character is thus marked by every act which may define a Tyrant, is unfit to be the Ruler of a free People.

NOR have we been wanting in Attentions to our British Brethren. We have warned them from Time to Time of Attempts by their Legislature to extend an unwarrantable Jurisdiction over us. We have reminded them of the Circumstances of our Emigration and Settlement here. We have appealed to their native Justice and Magnanimity, and we have conjured them by the Ties of our common Kindred to disavow these Usurpations, which, would inevitably interrupt our Connections and Correspondence. They too have been deaf to the Voice of Justice and of Consanguinity. We must, therefore, acquiesce in the Necessity, which denounces our Separation, and hold them, as we hold the rest of Mankind, Enemies in War, in Peace, Friends.

WE, therefore, the Representatives of the UNITED STATES OF AMERICA, in GENERAL CONGRESS, Assembled, appealing to the Supreme Judge of the World for the Rectitude of our Intentions, do, in the Name, and by Authority of the good People of these Colonies, solemnly Publish and Declare, That these United Colonies are, and of Right ought to be, FREE AND INDEPENDENT STATES; that they are absolved from all Allegiance to the British Crown, and that all political Connection between them and the State of Great-Britain, is and ought to be totally dissolved; and that as FREE AND INDEPENDENT STATES, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which INDEPENDENT STATES may of right do. And for the support of this Declaration, with a firm Reliance on the Protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.

Leaving IB-CON with Microgrids and DC Distribution in mind

I write (and post,you have to be amazed at the technology we so take for granted) this on a plane flying away from a great IB-Con, the REALCOM Intelligent Buildings Conference. It is a trade show like no other, with deep involvement of both the technology leaders in Real Estate, i.e. CIOs and CTOs of the largest REITs and those that would sell to them. The panel discussions were embued with new issues tied to deep adoption of IT not only into the corporate operations of estate, but into the operations of the hidden systems within.

Deep analytics and deep security concerning embedded systems, BAS and others were recurring themes this year. There were frank discussions of using the BAS to get to corporate information, and of using hacks to destroy building internal operations. There was just enough White Hat “think like a hacker” to keep the talks interesting.

But what really stands out at REALCOMM in the focus on emerging technologies. Jim Young and Howard Berger have a genuine interest in start-ups, identifying the ones that could do a lot of good, and helping them to meet their early hurdles. New companies may get coached on messaging and presentation. They go out of their way to introduce potential risk-takers with the new technologies. I have even listened in as companies just out of angel funding get coached through their next steps. The unseen services these two provide are immense.

On the other side, they create a real community among the technologists on the ownership side of real estate. Some come back year after year to challenge each other with the changing world of real estate. I have written here before of the challenges of setting up start-up office for millennials, of coffee shops and food trucks replacing the in-house conference rooms and in-house sandwich shop.

Some of these owners have set up their own coaching for new tenants, helping them with marketing, and financial planning, and other topics the young founder of a new venture may not know. At one level, this is raw self-interest, for a tenant that goes out of business is a tenant that breaks his lease. But at another level, and I think a truer level, it is a commitment to helping other flourish, so long as they learn and work hard, so that we all flourish. And I think this commitment and community starts with Jim and Howard.

My most immediate concerns this year were microgrids and semantic frameworks, as well as the Energy Mashup Lab. These topics are no surprise to my regular readers.

A moderated a microgrid session with CleanSpark and Stem, two technical companies with quite different focuses. Because another vendor, an early start-up, dropped out, I expanded my own comments on personal microgrids. What was remarkable was how each participant agreed on the big issues, the big benefits, and the driving forces. As an industry, microgrids are now know where they are going. Years ago, I moderated similar sessions, and the speakers were coming out of the labs, with vision, but not yet much delivery. Today, either of them, and maybe a dozen more vendors, can deliver systems out of the box.

Those systems are quite different though. They share a commonality of benefits: lasting reduction of energy risk, capabilities to work with real energy markets to reduce costs, a capability of consuming local storage for local purposes rather than the dead end of net metering, and privacy and security for the building and its occupants. The prices are coming down, leading to three-to-five year ROIs on pure energy costs without pricing the other elements. The risk is now low. The question is now moving toward “Does a microgrid make sense in this state with these regulations?”…and regulatory frameworks are starting to predominate. Keep an eye on these technologies, because if you have a site with greater than average price risk, or reliability risk, or security risk, you should be considering a microgrid now.

At the end of the day, I finished in a discussion of low voltage DC lighting. Again, long-time readers know I have been enthused by this technology for five years. It is now coming to market (LumenCache) with standard parts, standard high-performance LEDs, modular component s anyone can install and maintain. I hope to learn more about this company and its products in the weeks ahead.

Which makes me look ahead. Is it time, at last, for the eMerge alliance, and for DC-based distribution inside the building to come to the fore? Storage (batteries) are DC. Solar PEV is DC. Digital electronics and LEDs are DC. With less need for heat shields and conversion, LEDs are cheaper, safer, and more reliable. Without the need to convert from DC to Ac to DC (storage) and from DC to AC to DC (storage to use), there is a 30% “free” increase in efficiency. With enough distributed energy generation, DC power, as Edison thought it should be, may be back.

That’s all for now. I’m tired and travelling.

Privacy Mosaic: Tiling over the Fourth Amendment Piece by Piece

Regular readers know that I am concerned that the accumulation of many small legal actions can create a violation of privacy that exceeds the sum of the observations. This week, the DC Circuit Court ruled that prolonged recurring legal acts can become an illegal search, or one that requires a specific warrant. If it stands on appeal, this theory may be one of the most important decisions to protect individuals and restrain the modern state ever.

The ruling defines a new "mosaic" theory of the Fourth Amendment...

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