This book is about transactive energy (TE) and its role in achieving California’s goal of 100 percent clean energy and electrification of buildings and transportation.  It describes how TE works, the RATES project, and the TE roadmap for California.  The authors are pioneers in the development of the modern electric power system.  Stephen Barrager and Edward Cazalet have made groundbreaking contributions to electric power research and development. TE allows for fully decentralized real-time buying and selling of renewable energy, directly placing control of energy transactions in the hands of individual energy producers and consumers.

TE retail markets enable all parties – customers, solar and storage operators, utilities, and community choice aggregators – to buy and sell electricity with each other.  Transactions can be in real time or days, months, or years ahead (forward) of actual energy generation and use. Real-time transactions coordinate the operation of distributed generation, storage, customer devices and central generation.  Forward transactions put distributed and central investment decisions on a level playing field and reduce risk.

Retail markets are hosted on a cloud TE platform where transactions are recorded and parties’ payments computed.  The TE platform provides internet messaging protocols to communicate tenders and transactions among the parties.

The California Energy Commission sponsored a pilot of the TE approach in 2018.  The RATES project proved that TE is eminently feasible and low cost.

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About the authors

Stephen Barrager, Ph.D.

Steve Barrager is the founder and publisher at Baker Street Publishing. He is a pioneer in developing the profession of strategic decision coaching. He works with Fortune 500 companies, research institutes, and government and has led multidisciplinary, multinational teams in Asia, Europe, South America, and the Middle East.
Dr. Barrager was a founding partner of Decision Focus, Inc. (DFI) in Silicon Valley. At DFI, he worked with the Electric Power Research Institute to develop the first framework and tools to enable utility planners to do demand-side planning, that is, to use conservation and customer demand modification to avoid the need for new power plants.
Dr. Barrager earned his doctorate at Stanford University from the Management Science and Engineering Department (formerly Engineering-Economic Systems). He has an BSME degree from Northwestern University.

Edward Cazalet, Ph.D.

Edward Cazalet is the founder and CEO of TeMix, Inc. Previously, he was a governor of the California Independent System Operator. He was also the founder and CEO of Automated Power Exchange (APX), the first online wholesale power exchange and a CEO and founder of Decision Focus Inc.
Dr. Cazalet is a leader in the design of transactive services for electricity, the commercialization of electricity storage, and the analysis of energy decisions. He has extensive experience in designing, building, and operating high-speed, reliable transaction systems for electric power that interface with existing transaction systems and markets.
Dr. Cazalet holds a Ph.D. from Stanford University in Management Science and Engineering.  He also holds B.S. and M.S. degrees in engineering from the University of Washington.