I wonder what is happening with this? The idea is great, and I feel like the biggest benefit of a system like this would be the incentivization of individuals to become small scale power producers for their local grid. Reducing the losses from electricity traveling long distances would of course be a big plus, as well as increased self-reliance within communities ... Why aren't we making more moves in this direction ???
Wow. I'm recognizing the micro-grid as the potential for expressing community values by moving the broad-level macro grid to a community's borders and managing energy and value inside the community borders. The net of transactions within the community expresses the community's valuation of what the grid offers. The initial value of the microgrid may be less in its ability to operate independently, and more in the possibility it creates for a community to express its values more directly in the energy it consumes (or doesn't). So a community of 1000 where children are dying of asthma attacks ever few years (and suffering from them daily) might decide pollution-free energy is important, and reduce its net buy from the macro utility that sources most of its energy from coal, by intensely promoting energy conservation and by investing in cleaner solar or wind (with or without storage). Transactive Grid steps in and allows for a more efficient expression and realization of the values and choices within the community, so that they can not only express their values in transactions with the macro grid, but more fully realize those values by means of transactions within the local micro-grid. Once the micro-grid establishes the community market within which you can trade energy tokens, you are then free to 'kickstart' that PV array on your roof by getting bids from installers to build it (maybe from within your community?) and then offering the projected excess energy produced at whatever price makes the project feasible to you. Your neighbors then instantly see what it would cost them to source x amount of solar from within their own community, and they can accept your offer. Or as a buyer of solar, you could say how much you will pay for any solar delivered between now and end of next year, and the first neighbor to close a deal with you gets to sell to you at that price as soon as their PV array connects to the micro-grid and starts creating smart-metered energy tokens. If no solar gets built, you continue to consume macro-grid-driven electron excitation -- you're none the worse except for that asthma. If someone completes solar and your offer price is higher than the macro-grid's offer price, then you'll get your 100% local solar PV electron excitation delivered right from next door or down the street -- which is definitely worth more than REC's from wind power in Texas (unless, maybe, if you live near a wind farm in Texas). Even if other neighbors get all but one of the local solar PV electrons on offer, and you only get one, your offer to buy was cheap enough to submit, and someone will probably build another solar array soon to create more so you can buy them.
Yes this is truly revolutionary. Not only would distributed, small scale micro grids be more resilient as an infrastructure, it removes the need for massive startup capital to participate in the energy economy on a small scale.
Why would the system "double count" green energy as mentioned at 3:40 if a utility resell its REC? By doing so, the utility loose its REC, so is again not compliant and will have to buy a new one, or pay a tax, or produce renewable electricity itself...so the whole system is working toward its purpose: incentivize renewable generation at the lowest cost (where winds blows the most for instance)
I will give you my understanding of it, which may be wrong. Since this is a conventional transaction, dependent of a bureaucratic utility company correctly reconciling and accounting for the REC, there is the possibility of the left hand to not know what the right hand is doing. Conventional reconciliation is torturous. What you have said is correct, in the sense it should happen that way. Looks like it doesn't and my guess is the conventional reconciliation process isn't up to the task. In a large utility company, it's probably just not that important. This isn't fraudulent, just incompetent.
@@prhc there is significant loss when electricity travels long distances, due to inherent resistance in the wire. Maybe this will be improved one day, but dont hold your breath.
I wonder what is happening with this? The idea is great, and I feel like the biggest benefit of a system like this would be the incentivization of individuals to become small scale power producers for their local grid. Reducing the losses from electricity traveling long distances would of course be a big plus, as well as increased self-reliance within communities ... Why aren't we making more moves in this direction ???
Wow. I'm recognizing the micro-grid as the potential for expressing community values by moving the broad-level macro grid to a community's borders and managing energy and value inside the community borders. The net of transactions within the community expresses the community's valuation of what the grid offers. The initial value of the microgrid may be less in its ability to operate independently, and more in the possibility it creates for a community to express its values more directly in the energy it consumes (or doesn't).
So a community of 1000 where children are dying of asthma attacks ever few years (and suffering from them daily) might decide pollution-free energy is important, and reduce its net buy from the macro utility that sources most of its energy from coal, by intensely promoting energy conservation and by investing in cleaner solar or wind (with or without storage).
Transactive Grid steps in and allows for a more efficient expression and realization of the values and choices within the community, so that they can not only express their values in transactions with the macro grid, but more fully realize those values by means of transactions within the local micro-grid. Once the micro-grid establishes the community market within which you can trade energy tokens, you are then free to 'kickstart' that PV array on your roof by getting bids from installers to build it (maybe from within your community?) and then offering the projected excess energy produced at whatever price makes the project feasible to you. Your neighbors then instantly see what it would cost them to source x amount of solar from within their own community, and they can accept your offer. Or as a buyer of solar, you could say how much you will pay for any solar delivered between now and end of next year, and the first neighbor to close a deal with you gets to sell to you at that price as soon as their PV array connects to the micro-grid and starts creating smart-metered energy tokens. If no solar gets built, you continue to consume macro-grid-driven electron excitation -- you're none the worse except for that asthma. If someone completes solar and your offer price is higher than the macro-grid's offer price, then you'll get your 100% local solar PV electron excitation delivered right from next door or down the street -- which is definitely worth more than REC's from wind power in Texas (unless, maybe, if you live near a wind farm in Texas). Even if other neighbors get all but one of the local solar PV electrons on offer, and you only get one, your offer to buy was cheap enough to submit, and someone will probably build another solar array soon to create more so you can buy them.
Yes this is truly revolutionary. Not only would distributed, small scale micro grids be more resilient as an infrastructure, it removes the need for massive startup capital to participate in the energy economy on a small scale.
Why would the system "double count" green energy as mentioned at 3:40 if a utility resell its REC? By doing so, the utility loose its REC, so is again not compliant and will have to buy a new one, or pay a tax, or produce renewable electricity itself...so the whole system is working toward its purpose: incentivize renewable generation at the lowest cost (where winds blows the most for instance)
I will give you my understanding of it, which may be wrong.
Since this is a conventional transaction, dependent of a bureaucratic utility company correctly reconciling and accounting for the REC, there is the possibility of the left hand to not know what the right hand is doing. Conventional reconciliation is torturous.
What you have said is correct, in the sense it should happen that way. Looks like it doesn't and my guess is the conventional reconciliation process isn't up to the task. In a large utility company, it's probably just not that important. This isn't fraudulent, just incompetent.
So if you have money you can become a Prosumer instead of just a consumer.
Consumers will pay much less for energy as well. Also minimizing blackouts as there will be redundant energy sources.
@@badr_mo yes the ideal outcome would be an increase in the overall efficiency of the system.
@@willmattwood I can see an improvement in resiliency but not sure how this would be more efficient
@@prhc there is significant loss when electricity travels long distances, due to inherent resistance in the wire. Maybe this will be improved one day, but dont hold your breath.
Just another way to force us to enter the carbon credits market by renaming it to this stuff.