The Preface reads as follows:
“This book is about applying fundamental business concepts to move our electric power markets to a new paradigm. The heart of the new paradigm is the use of forward and spot transactions to guide investment and operating decisions.
The current paradigm is regulated cost-of-service and centralized resource optimization. This old paradigm will gradually give way to the new model as the electric system evolves from centrally planned to a decentralized energy ecosystem.
The TE model embodies four big ideas:
- There are two products: energy and transport services.
- Forward transactions are used to manage risk and coordinate investment decisions.
- Spot transactions are used to coordinate operating decisions.
- All parties act autonomously.”
- The Transactive Energy Vision
- The Three Pillars: Systems, Connection, and Protocols
- Meeting the Challenges and Opportunities
- Why Transactive Energy?
- How do we get there from here?
- Our Basis for Writing This Book
- Utility executives
- Energy business professionals
- Investors and vendors
- Systems, power, and electrical engineers
- Energy researchers
The authors, Stephen Barrager,Ph.D., and Edward Cazalet, Ph.D.,are pioneers in the design of new methods for electric-system planning. They both studied systems engineering and economics in the Management Science and Engineering Department at Stanford University. They have built several pathbreaking companies to serve the electric power industry.
Evolution toward the Transactive Energy model will increase efficiency and stimulate innovation. The model is more fair and transparent than our current regulated cost-of-service, central resource optimization model. We look forward to your reviews.
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