NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0

Actions under this plan will result in a common specification for price. This specification will be used in demand response applications, market transactions, distributed energy resource integration, meter communications, and many other inter-domain communications. Businesses, homes, electric vehicles, and the power grid will benefit from automated and timely communication of energy prices, characteristics, quantities, and related information. Price is a number associated with product characteristics, including delivery schedule, quality (reliability, power quality, source, etc.), and environmental and regulatory characteristics. Price also is a common abstraction for abundance, scarcity, and other market conditions. A common price model will define how to exchange data on energy characteristics, availability, and schedules to support efficient communication of information in any market. Why Coordination of energy supply and demand requires a common understanding of supply and demand. A simple quotation of price, quantity, and characteristics in a consistent way across markets enables new markets and integration of distributed energy resources. Price and product definition are key to transparent market accounting. A consistent information model will reduce implementation costs. A consistent model for market information exchange simplifies communication flow and improves the quality and efficiency of actions taken by energy providers, distributors, and consumers. Better communication of actionable energy prices facilitates effective dynamic pricing and is necessary for net-zero-energy buildings, supply-demand integration, and other efficiency and sustainability initiatives. Common, up-to-the-moment pricing information is also an enabler of local generation and storage of energy, such as electric-charging and thermal-storage technologies for homes and buildings. Major Objectives • Develop a summary of power reliability and quality characteristics that affect price and availability (supply side) and desirability (demand side). • Survey existing price communications and develop harmonized specification (review by October 2009, draft specification by April 2010). • Engage the broad group of stakeholders into the effort. • Build on existing work in financial energy markets and existing demand response programs. • Integrate with schedule and interval specifications under development (see section 5.3). Project Team NIST Lead: Dave Holmberg