The Collaborative Design Process and Decision Engineering

The Collaborative Design Process and Decision Engineering

The intellectual high ground in business decision making is held by a handful of organizations: The Economist Intelligence Unit, Harvard Business Review, McKinsey Global Institute, and Strategy+Business. I think Rich Karlgaard, the publisher of Forbes, is also a...

Big decisions are about the future. Big Data is about the past.

You can’t connect the dots looking forward; you can only connect them looking backwards.    Steve Jobs Big data and Analytics are having a remarkable impact on operational decision making.  They are helping us do lots of things more effectively; things like...

Introductory chapter

Table of Contents

About the Authors

Acknowledgments

Preface

CHAPTER 1 - INTRODUCTION

California is a leader in renewables and electrification

The digital transformation is happening in California and everywhere

The rest of this book

CHAPTER 2 - THE DUCK CURVE

Storage and load shifting

Customer-owned battery storage

EVs

Water heating

HVAC

Clothes dryers, dishwashers, refrigerators, and pool pumps

Storage optimization and load shifting require look-ahead pricing

Subhourly flexibility

Summary

CHAPTER 3 - THE TRANSACTIVE ENERGY VISION

The three systems

SECTION 1: Overview of the transactive energy model

The two products

Three important principles

Storage decisions

The TE process: tenders, transactions, and deliveries

The TE platform

Summary

SECTION 2: The customer in a transactive energy model

How the flexible loads connect with the TE system

Summary

SECTION 3: The transactive energy platform

Transport

Web services and payload

Market-making process and clearing

Scalable and parallel platforms

Summary

SECTION 4: Retail operation with a transactive energy platform

Palo Alto’s utility services

Converting to TE

Summary

CHAPTER 4 - THE AGENT

What the agent is

The agent’s objective

Agents in the TE system

Machine learning

How the agent determines forward transactions for the next 24 hours

Agents working with months-ahead or years-ahead transactions

CHAPTER 5 - THE RATES PROJECT

Purpose of the RATES project

Project results

Customer recruitment and participation

The California PUC granted SCE an experimental transactive subscription tariff

The RATES system was highly automated

The rest of this chapter

SECTION 1: RATES architecture and interfaces

SECTION 2: The TeMix agents

Battery storage agent

Pool pump agent

Electric vehicle agent

HVAC agent

Residual load

SECTION 3: The RATES platform, tenders, and subscriptions

The informational architecture of RATES

Summary

CHAPTER 6 TRANSACTIVE ENERGY ROADMAP FOR CALIFORNIA

What is the path forward?

Retail market design and tariffs

Investment and risk management

Wholesale market design

Regulation

Digital technology

Standards

Will customers be comfortable with high-tech automated energy agents?

Summary

CHAPTER 7 - SUMMARY: IN A NUTSHELL

Glossary

References