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Transactive energy


Technology Description

Transactive energy refers to the exchange of energy between consumers within the area of operation of an existing electric power system.
It is enabled by the deployment of distributed energy resources close to the point of demand, as well as a suite of developing digital monitoring and control techniques. On the one hand, transactive energy sources are generally intermittent (mainly solar PV) and distributed, and are not evenly deployed, which brings with it challenges for integration and management. On the other, transactive energy opens up opportunities for the accelerated adoption of renewables and other distributed energy resources, as well as new means to manage the power system, optimise flows and provide greater stability to grids.
Transactive energy requires both a digital platform and an energy asset platform to function. The digital platform requires two-way communication, advanced metering infrastructure, remote sensing and control technologies on the grid, and software trading platforms.

Relevance for Net Zero

Transactive energy can bring additional system benefits and accelerate adoption of distributed energy resources and variable renewable energy, but broad adoption is not strictly necessary to get on a pathway to the NZE Scenario.

Key Countries

Germany, Colombia, United States

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