Transactive Design for Integrated Transmission and Distribution Systems: A Multidisciplinary Perspective

Grid-supported electric power systems in many parts of the world have been substantially restructured over the past thirty years into partially decentralized systems based more fully on transactive arrangements: namely, bid/offer-based markets for energy, ancillary services, and reserve capacity. In parallel with these structural developments, the participants in these transactive arrangements have become increasingly heterogeneous and dispersed. This perspective considers nine multidisciplinary goals for the transactive design of integrated transmission and distribution systems for electric power. Briefly, these nine goals are: incentive alignment; resource adequacy; efficiency; operational security; fairness; conceptual coherency and transparency; minimal administrative intervention; internalization of externalities; and minimal transitional disruption. Subsequent sections consider physical and economic concepts and conundrums that must be carefully considered if these nine goals are to be achieved.