Screen Shot 2015-04-08 at 12.44.28 PMEd Cazalet and Steve Barrager submitted their vision of the electric energy ecosystem of the future to the SEPA 51st State project. The 51st State project began in 2015 as a call for innovation around what the future of the energy market might look like. In Phase I of the project people were asked to take a blank canvas and describe the ideal market structures from the ground up. In Phase II stakeholders were asked to build a roadmap showing how to get there.

In Phase I Cazalet and Barrager outlined the Transactive Energy (TE) vision. They made the important distinction between the “Grid of Things” and the “Grid of People.” They explained that the Transactive Energy business model is focused on the “Grid of People” and it embodies four big ideas:

  1. There are two products: energy and transport,
  2. Forward transactions are used to coordinate investments and manage risk,
  3. Spot transactions are used to coordinate operating decisions, and
  4. All parties act autonomously.

California was chosen as the case study to explain how the TE business and regulatory model can be implemented. The case study starts with the California electricity industry in 2016 and shows how it can evolve into a full blown TE ecosystem statewide by 2030. The next step is to develop meaningful pilots to develop the required applications and test the concepts.

The California roadmap is shown in the heading for this posting. The whole submission can be downloaded here.

The SEPA 51st State project is a unique opportunity to proactively design the electric power ecosystem of the future. We hope the project continues and secures broad support.