Transactive Energy (TE) is a concept that refers to the “economic and control techniques used to manage the flow or exchange of energy within a power system”. The example of transactive energy exchange is a bit more complicated because transactions are not limited to being between a utility and their direct customers. Customers also can sell to their neighbor – the “prosumer” concept, which is the notion that a customer might be both a buyer and seller of energy. For example, in the illustration above, suppose the customer with the PV generates more energy than they need and offers to sell it to the other utility customer. In this future looking scenario, a meter still provides the measurement and verification (one wants confirmation that what one is paying for has been produced). The utility, in this scenario, is the distribution system operator and provides the wires for the energy exchange to take place, and one or both parties would have a transaction fee to the utility that pays maintenance overhead on this operation, in addition to the transaction fee that would be associated with the blockchain in use (See Note 1 - Learn More).
Again, blockchain computational requirements exceed the capability of residential meters, so another platform would need to be provided to manage the peer-to-peer network, perhaps an additional meter behind the utility meter as we see in the LO3 configuration of the Brooklyn microgrid, or a device that can run a blockchain wallet, or there may be a distributed peer on the circuit run by the utility, e.g. a distributed DMS or DERMS that in addition to providing control function could also provide the mechanism for the blockchain transaction. Contrast this with how transactive energy is provided in the United Kingdom (See Note 1 - Learn More).
Note 1 - ERPI Report, published October 2017, BLOCKCHAIN: TECHOLOGY RISK AND REWARDS FOR UTILITES. The Electric Power Research Institute, Inc. (EPRI, www.epri.com) conducts research and development relating to the generation, delivery and use of electricity for the benefit of the public. An independent, nonprofit organization, EPRI brings together its scientists and engineers as well as experts from academia and industry to help address challenges in electricity, including reliability, efficiency, affordability, health, safety and the environment. EPRI also provides technology, policy and economic analyses to drive long-range research and development planning and supports research in emerging technologies. EPRI members represent 90% of the electric utility revenue in the United States with international participation in 35 countries.