3.10 Tariff and Market Issues

3.10.7 Transactive Energy

Transactive energy refers to the use of a combination of economic and control techniques to improve grid reliability and efficiency. These techniques may also be used to optimize operations within a customer’s facility . It combines demand response programs that help customers manage their loads, with utility control programs that could eventually incentivize customers to manage both their loads and their DER systems to reflect utility needs as well as their own needs. These incentives could be tariff-based or market-based.