ISO/IEC TR 15067-3-7:2020

ISO/IEC TR 15067-3-7
Edition 1.0 2020-09
TECHNICAL
REPORT
colour
inside
Information technology – Home electronic system (HES) application model –
Part 3-7: GridWise transactive energy systems research, development and
deployment roadmap
All rights reserved. Unless otherwise specified, no part of this publication may be reproduced or utilized in any form
or by any means, electronic or mechanical, including photocopying and microfilm, without permission in writing from
either IEC or IEC's member National Committee in the country of the requester. If you have any questions about
ISO/IEC copyright or have an enquiry about obtaining additional rights to this publication, please contact the address
below or your local IEC member National Committee for further information.

IEC Central Office Tel.: +41 22 919 02 11
3, rue de Varembé info@iec.ch
CH-1211 Geneva 20 www.iec.ch
Switzerland
About the IEC
The International Electrotechnical Commission (IEC) is the leading global organization that prepares and publishes
International Standards for all electrical, electronic and related technologies.

About IEC publications
The technical content of IEC publications is kept under constant review by the IEC. Please make sure that you have the
latest edition, a corrigendum or an amendment might have been published.

IEC publications search - webstore.iec.ch/advsearchform Electropedia - www.electropedia.org
The advanced search enables to find IEC publications by a The world's leading online dictionary on electrotechnology,
variety of criteria (reference number, text, technical containing more than 22 000 terminological entries in English
committee,…). It also gives information on projects, replaced and French, with equivalent terms in 16 additional languages.
and withdrawn publications. Also known as the International Electrotechnical Vocabulary

(IEV) online.
IEC Just Published - webstore.iec.ch/justpublished

Stay up to date on all new IEC publications. Just Published IEC Glossary - std.iec.ch/glossary
details all new publications released. Available online and 67 000 electrotechnical terminology entries in English and
once a month by email. French extracted from the Terms and Definitions clause of
IEC publications issued since 2002. Some entries have been
IEC Customer Service Centre - webstore.iec.ch/csc collected from earlier publications of IEC TC 37, 77, 86 and
If you wish to give us your feedback on this publication or CISPR.

need further assistance, please contact the Customer Service

Centre: sales@iec.ch.
ISO/IEC TR 15067-3-7
Edition 1.0 2020-09
TECHNICAL
REPORT
colour
inside
Information technology – Home electronic system (HES) application model –

Part 3-7: GridWise transactive energy systems research, development and

deployment roadmap
INTERNATIONAL
ELECTROTECHNICAL
COMMISSION
ICS 35.200 ISBN 978-2-8322-8852-8

– 2 – ISO/IEC TR 15067-3-7:2020
 ISO/IEC 2020
CONTENTS
FOREWORD . 4
INTRODUCTION . 6
1 Scope . 7
2 Normative references . 7
3 Terms, definitions, and abbreviated terms . 7
3.1 Terms and definitions . 7
3.2 Abbreviated terms . 8
4 Overview of the roadmap . 8
4.1 General . 8
4.2 Stages . 9
4.3 Roadmap tracks . 10
4.3.1 General . 10
4.3.2 Regulatory and policy . 10
4.3.3 Business models and value realization . 10
4.3.4 System design and architecture . 10
4.3.5 Physical and cyber technologies and infrastructure . 10
4.4 Swim lane definitions . 11
4.5 Organization of material . 11
4.6 Core concepts . 12
4.6.1 General . 12
4.6.2 Questions to bear in mind . 12
4.6.3 Benefits and enablers summary . 13
5 Regulatory and policy . 13
5.1 General . 13
5.2 Vision – what we hope to see at each stage . 14
5.3 Enablers – elements required if the vision is to be realized . 15
5.4 Results – outcomes made possible by new patterns of use . 16
5.5 Benefits – how these outcomes add value . 17
6 Business models and value realization . 17
6.1 General . 17
6.2 Vision – what we hope to see at each stage . 18
6.3 Enablers – elements required if the vision is to be realized . 19
6.4 Results – outcomes made possible by new patterns of use . 20
6.5 Benefits – how these outcomes add value . 21
7 System design and architecture . 22
7.1 General . 22
7.2 Vision – what we hope to see at each stage . 23
7.3 Enablers – elements required if the vision is to be realized . 24
7.4 Results – outcomes made possible by new patterns of use . 25
7.5 Benefits – how these outcomes add value . 26
8 Physical and cyber technologies and infrastructure . 27
8.1 General . 27
8.2 Vision – what we hope to see at each stage . 28
8.3 Enablers – elements required if the vision is to be realized . 29
8.4 Results – outcomes made possible by new patterns of use . 30

 ISO/IEC 2020
8.5 Benefits – how these outcomes add value . 31
Annex A (informative) Core concepts . 33
A.1 General . 33
A.2 Regulatory and policy . 33
A.3 Business models and value realization . 33
A.4 System design and architecture . 33
A.5 Physical and cyber technologies and infrastructure . 34
Bibliography . 35

Figure 1 – Distribution system evolution . 9
Figure 2 – Example benefits and enablers for the "regulatory and policy" track . 14
Figure 3 – Example benefits and enablers for the "business models and value
realization" track . 18
Figure 4 – Example benefits and enablers for the "system design and architecture" track . 23
Figure 5 – Example benefits and enablers for the "physical and cyber technologies and

infrastructure" track . 28

Table 1 – Example vision table . 11
Table 2 – Example enablers table . 11
Table 3 – Example results table . 12
Table 4 – Example benefits table . 12
Table 5 – Regulatory and policy vision (RPV) . 15
Table 6 – Regulatory and policy enablers (RPEs) . 16
Table 7 – Regulatory and policy results (RPRs) . 16
Table 8 – Regulatory and policy benefits (RPBs) . 17
Table 9 – Business model and value realization vision (BMV) . 19
Table 10 – Business model and value realization enablers (BMEs) . 20
Table 11 – Business model and value realization results (BMRs) . 21
Table 12 – Business model and value realization benefits (BMBs) . 22
Table 13 – Design and architecture vision (DAV) . 24
Table 14 – Design and architecture enablers (DAEs) . 25
Table 15 – Design and architecture results (DARs) . 26
Table 16 – Design and architecture benefits (DABs) . 27
Table 17 – Physical and cyber technologies and infrastructure vision (PCV) . 29
Table 18 – Physical and cyber technologies and infrastructure enablers (PCEs) . 30
Table 19 – Physical and cyber technologies and infrastructure results (PCRs). 31
Table 20 – Physical and cyber technologies and infrastructure benefits (PCBs) . 32

– 4 – ISO/IEC TR 15067-3-7:2020
 ISO/IEC 2020
INTERNATIONAL ELECTROTECHNICAL COMMISSION
____________
INFORMATION TECHNOLOGY –
HOME ELECTRONIC SYSTEM (HES) APPLICATION MODEL –

Part 3-7: GridWise transactive energy systems research,
development and deployment roadmap

FOREWORD
1) ISO (the International Organization for Standardization) and IEC (the International Electrotechnical
Commission) form the specialized system for worldwide standardization. National bodies that are members of
ISO or IEC participate in the development of International Standards through technical committees established
by the respective organization to deal with particular fields of technical activity. ISO and IEC technical
committees collaborate in fields of mutual interest. Other international organizations, governmental and non-
governmental, in liaison with ISO and IEC, also take part in the work.
2) The formal decisions or agreements of IEC and ISO on technical matters express, as nearly as possible, an
international consensus of opinion on the relevant subjects since each technical committee has representation
from all interested IEC and ISO National bodies.
3) IEC and ISO documents have the form of recommendations for international use and are accepted by IEC and
ISO National bodies in that sense. While all reasonable efforts are made to ensure that the technical content of
IEC and ISO documents is accurate, IEC and ISO cannot be held responsible for the way in which they are
used or for any misinterpretation by any end user.
4) In order to promote international uniformity, IEC and ISO National bodies undertake to apply IEC and ISO
documents transparently to the maximum extent possible in their national and regional publications. Any
divergence between any IEC and ISO document and the corresponding national or regional publication shall be
clearly indicated in the latter.
5) IEC and ISO do not provide any attestation of conformity. Independent certification bodies provide conformity
assessment services and, in some areas, access to IEC and ISO marks of conformity. IEC and ISO are not
responsible for any services carried out by independent certification bodies.
6) All users should ensure that they have the latest edition of this document.
7) No liability shall attach to IEC and ISO or their directors, employees, servants or agents including individual
experts and members of its technical committees and IEC and ISO National bodies for any personal injury,
property damage or other damage of any nature whatsoever, whether direct or indirect, or for costs (including
legal fees) and expenses arising out of the publication, use of, or reliance upon, this ISO/IEC document or any
other IEC and ISO documents.
8) Attention is drawn to the Normative references cited in this document. Use of the referenced publications is
indispensable for the correct application of this document.
9) Attention is drawn to the possibility that some of the elements of this ISO/IEC document may be the subject of
patent rights. IEC and ISO shall not be held responsible for identifying any or all such patent rights.
The main task of IEC and ISO technical committees is to prepare International Standards.
However, a technical committee may propose the publication of a Technical Report when it
has collected data of a different kind from that which is normally published as an International
Standard, for example "state of the art".
ISO/IEC TR 15067-3-7, which is a Technical Report, has been prepared by subcommittee 25:
Interconnection of information technology equipment, of ISO/IEC joint technical committee 1:
Information technology.
The text of this Technical Report is based on the following documents:
Enquiry draft Report on voting
JTC1-SC25/2900/DTR JTC1-SC25/2966/RVDTR

Full information on the voting for the approval of this Technical Report can be found in the
report on voting indicated in the above table.

 ISO/IEC 2020
This document has been drafted in accordance with the ISO/IEC Directives, Part 2.
A list of all parts in the ISO/IEC 15067 series, published under the general title Information
technology – Home electronic system (HES) application model, can be found on the IEC and
ISO websites.
In this document, the following print type is used:
• Bolded italics represent condensed encapsulations of the transactive energy (TE) principles
described in ISO/IEC TR 15067-3-8:2020, 6.4.

IMPORTANT – The 'colour inside' logo on the cover page of this publication indicates
that it contains colours which are considered to be useful for the correct
understanding of its contents. Users should therefore print this document using a
colour printer.
– 6 – ISO/IEC TR 15067-3-7:2020
 ISO/IEC 2020
INTRODUCTION
It has been said that if Thomas Edison could see the electricity industry today, he would
recognize it as being much the same as 100 years ago, but that may not be the case for much
longer. The century-old paradigm of large-scale generation and distribution is starting to change
as renewable resources make more of an impact. New distributed devices, both consumer and
utility-owned, affect the grid directly and also interact with each other. Preparations are already
underway to integrate these new resources and technologies by considering operational and
policy changes based on measured and effective choices. For example, the industry is
undergoing a fundamental shift from a "load following" paradigm, where central generation
adjusts to varying demand, to a "supply following" paradigm, where responsive demand absorbs
variable generation such as solar and wind. During the transition to a more distributed system,
the industry cannot afford to design purely for either extreme. A key to success is to use
technologies that support flexible coordination of both centralized and distributed elements. One
such approach is provided by transactive energy (TE) systems.
Transactive energy systems are systems of economic and control mechanisms that allow the
dynamic balance of supply and demand across the entire electrical infrastructure using value as
a key operational parameter. This definition is from ISO/IEC 15067-3-8:2020, 3.28 [1] .
This broad definition allows us to recognize the existing use of transactive techniques in bulk
energy markets and to consider how to enable new techniques for possible use in distribution
systems, at the interface between transmission and distribution, and perhaps even more broadly.
The need for transactive energy systems is being driven by economic, technological, and
customer preference opportunities that were just beginning to exist five years ago. Better
performance and declining costs for many renewable energy sources and storage technologies
now being deployed suggest use of distributed energy resources will continue growing.
Distribution systems were not designed for large-scale deployment of distributed energy
resources with potential power flows in multiple directions. Ad hoc arrangements have worked so
far, but as the combined effects of changes that are often outside of regulatory and utility
observation and control become significant, a more robust response to maintaining and
enhancing safety, reliability, and resilience of distribution energy systems and markets is
required.
ISO/IEC TR 15067-3-7 is adapted from the GridWise® Architecture Council document,
Transactive Energy Systems Research, Development and Deployment Roadmap [2], which
provides a broad perspective of how transactive energy systems and their use will evolve over
time. It has been edited to align with the format of IEC documents.

____________
Numbers in square brackets refer to the Bibliography.
GridWise is a registered trademark of Gridwise, Inc. This information is given for the convenience of users of
this document and does not constitute an endorsement by IEC or ISO.

 ISO/IEC 2020
INFORMATION TECHNOLOGY –
HOME ELECTRONIC SYSTEM (HES) APPLICATION MODEL –

Part 3-7: GridWise transactive energy systems research,
development and deployment roadmap

1 Scope
This part of ISO/IEC 15067, which is a Technical Report, explains the organization and
structure of the transactive energy systems research, development, and deployment roadmap.
2 Normative references
There are no normative references in this document.
3 Terms, definitions, and abbreviated terms
3.1 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminological databases for use in standardization at the following
addresses:
• IEC Electropedia: available at http://www.electropedia.org/
• ISO Online browsing platform: available at http://www.iso.org/obp
3.1.1
congestion
characteristic of the transmission system produced by a constraint on the optimum economic
operation of the power system, such that the marginal price of energy to serve the next
increment of load, exclusive of losses, at different locations on the transmission system is
unequal
3.1.2
cyber-physical system
smart system that includes engineered interacting networks of physical and computational
components
3.1.3
deterministic
always producing the same output when given a particular input (no randomness)
3.1.4
distribution system operator
DSO
entity responsible for planning and operational functions associated with a distribution system
that is modernized for high levels of distributed energy resources (DERs) and handles the
interface to the bulk system transmission system operator (TSO) at a locational marginal price
(LMP) node or transmission-distribution substation
Note 1 to entry: A range of other DSO models are under consideration in the industry.

– 8 – ISO/IEC TR 15067-3-7:2020
 ISO/IEC 2020
3.1.5
prosumer
person or entity who both consumes and produces
3.1.6
stochastic optimization
minimization or maximization of a function in the presence of randomness in the optimization
process
3.2 Abbreviated terms
NOTE This list also includes some terms not used in this document, but which relate to other terms and so could
be useful for the user.
ADMS advanced distribution management system
AMI advanced metering infrastructure
BEM(S) building energy management (system)
CVR conservation voltage reduction
DER distributed energy resource
DERMS distributed energy resource management system
DMS distribution management system
DOE U.S. Department of Energy
DR demand response
DSO distribution system operator
FERC U.S. Federal Energy Regulatory Commission
GWAC GridWise® Architecture Council
IOU investor-owned utility
LMP locational marginal price
MDM meter data management (system)
PSC public service commission
PUC public utility commission
PV photovoltaic
RTO regional transmission operator
T&D transmission and distribution
TE(S) transactive energy (system)
TSO transmission system operator
VVO volt-var optimization
X2G anything to grid
4 Overview of the roadmap
4.1 General
The GridWise® Architecture Council (GWAC) transactive energy roadmap outlines a vision and
path forward to achieve deployment of transactive energy systems at scale as an operational
element of the electric power system to facilitate the integration of DERs and dynamic end uses,
such as connected buildings. It also considers the application of transactive energy systems
(TESs) for the coordination and control of end uses – for example, in managing energy in
buildings and campuses.
 ISO/IEC 2020
The roadmap considers drivers of change, triggers for transactive energy system deployment,
and required infrastructure for deployment at scale. Gaps in technology and infrastructure that
could require investment are identified.
The roadmap captures potential changes over time (stages) and organizes them by business
and technical tracks. Within each track, it also groups potential changes into "swim lanes" that
identify what we hope to see, what it takes for this to occur, what we see as a result, and what
these features do to add value.
4.2 Stages
The roadmap is based on considering what is required to support increasing levels of DER
penetration in electricity distribution systems. The roadmap considers the overall vision in three
stages, depicted in Figure 1, primarily characterized by the level of market development around
DER penetration. These stage definitions help the user determine what stage a given distribution
system is in, based on how its characteristics align with these definitions. Note that there are
implications for the relationship between the distribution utilities and the bulk power system, and
given the regional nature of the bulk power system, all distribution utilities within a given region
will not usually find themselves at the same stage.

SOURCE: LBNL-1003797 [3].
Figure 1 – Distribution system evolution
– Stage 1
In stage 1, DER penetration is limited. DER value is administratively set (such as in net-
metering tariffs). DER has minimal but perceivable effects on distribution system operations.
In the following clauses, this stage is characterized as "persistently demonstrated".
– Stage 2
Levels of DER penetration grow as device prices continue to drop. Net-metering tariffs begin
to be replaced with market interactions that establish the value of the DER assets.
Aggregated DER or large DER assets interact with bulk power markets based on a limited
number of value streams. Effects of DER penetration on distribution system operations are
manageable. In the following clauses, this stage is characterized as "broadly applied".

– 10 – ISO/IEC TR 15067-3-7:2020
 ISO/IEC 2020
– Stage 3
DER penetration grows, affecting distribution system operations and requiring new means for
asset owners to realize return on investment. Combinations (stacks) of value streams are
realized through DER participation in local, distribution-level markets. The stacked value
streams have spatial and temporal variability that reflects operational needs in the
distribution and bulk power systems. In the following clauses, this stage is characterized as
"at scale".
4.3 Roadmap tracks
4.3.1 General
The roadmap tracks generally follow the ISO/IEC TR 15067-3-8 [1] breakdown of considerations
for TE systems into the four tracks outlined in 4.3.2 to 4.3.5.
4.3.2 Regulatory and policy
This track describes the actions needed by regulators and other policy makers to enable TE
systems as envisioned in each of the three stages. The objective of the actions in this track is to
establish an environment that enables transacting parties to understand rules of engagement
and compensation in addition to performance requirements (and penalties for non-performance).
The actions also focus on achieving a consistency of approach across jurisdictions, as much as
possible, to promote interoperability. The actions described could be carried out by different
policy-making bodies depending on the individual jurisdictions and types of utilities.
Many of the actions described in this track support development and implementation actions
described in the "business models and value realization" track (4.3.3), and to a limited extent,
the actions included in the "system design and architecture" (4.3.4) and "physical and cyber
technologies and infrastructure" (4.3.5) tracks.
4.3.3 Business models and value realization
This track focuses on the various stakeholders, their roles in TE, and how their business models
need to evolve for them to provide and realize value in each of the three stages. While the
"regulatory and policy" track describes the actions policy makers need to take to establish the
needed TE environment, this track focuses on the actions to assess and implement needed
business model changes by various categories of stakeholders, recognizing that business
model changes include value propositions on both supply and demand sides.
4.3.4 System design and architecture
This track focuses on system design and architecture actions necessary to support each stage,
specifically dealing with information interoperability to support TE valuation, and operation and
control aspects to understand and manage the effects on the electricity grid. This track depends
on the business model to describe the content and timing of required information exchange
between TE parties. This is where each stakeholder needs to develop or understand their
existing architecture and their planned architecture, then develop a set of transitional states to
get them there and transition between stages.
4.3.5 Physical and cyber technologies and infrastructure
This track focuses on the changing cyber-physical needs and required actions through the
progression of the three stages. This track addresses the technical layers of the GWAC Stack
and the physical layers of the Control Abstraction Stack as described in ISO/IEC TR 15067-3-8. It
includes the activities aimed at the electrically connected network and the communications
networks that are necessary to monitor and control the electricity grid. This track depends on
the information exchange requirements considered in the "system design and architecture"
track to ensure the ability to exchange information in support of transactions without impairing
the reliability of the electrical network.

 ISO/IEC 2020
Each of these areas is informed by the drivers for change, such as increased penetration of
rooftop solar, energy storage, electrification of transportation, etc.
4.4 Swim lane definitions
For each of the roadmap tracks, there is a separate table that describes the features of that
track in each of the three stages. Also, for each stage, there are four swim lanes that provide a
more detailed breakdown of the features not only by stage but also by the following different
perspectives.
• Vision – what we hope to see at each stage.
• Enablers – elements required for the vision to be realized.
• Results – outcomes made possible by new patterns of use.
• Benefits – how these outcomes add value (compared to the status quo).
4.5 Organization of material
In order to show the effects of changes based on the use of tracks, stages, and swim lanes, this
document is organized into clauses based on tracks. In addition to the tracks mentioned above,
Clause 4 gives an overview that captures some of the key concepts from the other tracks. It
provides an executive summary for the roadmap.
At the start of each subclause in Clauses 5 to 8 is a list of three to five main concepts that were
considered important to represent in that clause. These core concepts state the fundamental
concept in as timeless (stage-free) a manner as possible so that one can then apply the
concept by stating how it manifests through the stages. These manifestations are arranged in
tables. Also included in the core concepts are condensed encapsulations of the TE principles
described in ISO/IEC TR 15067-3-8:2020, 6.4 [1].
Within each clause there are four tables, one for each swim lane. Each row in a table captures
something that represents a change or evolution occurring over time, with three columns to
describe what is seen in stages 1, 2, and 3, as the examples in Table 1 to Table 4 show.
Table 1 – Example vision table
Vision Stage 1 Stage 2 Stage 3
What we hope to Persistently Broadly At scale
see at each stage demonstrated applied
Early scenario 1 Mid scenario 1 Late scenario 1
Early scenario 2 Mid scenario 2 Late scenario 2
Early scenario 3 Mid scenario 3 Late scenario 3

Table 2 – Example enablers table
Enablers Stage 1 Stage 2 Stage 3
Elements Persistently Broadly At scale
required if the demonstrated applied
vision is to be
realized
Early scenario 1 Mid scenario 1 Late scenario 1
Early scenario 2 Mid scenario 2 Late scenario 2
Early scenario 3 Mid scenario 3 Late scenario 3

– 12 – ISO/IEC TR 15067-3-7:2020
 ISO/IEC 2020
Table 3 – Example results table
Results Stage 1 Stage 2 Stage 3
Outcomes made Persistently Broadly At scale
possible by new demonstrated applied
patterns of use
Early scenario 1 Mid scenario 1 Late scenario 1
Early scenario 2 Mid scenario 2 Late scenario 2
Early scenario 3 Mid scenario 3 Late scenario 3

Table 4 – Example benefits table
Benefits Stage 1 Stage 2 Stage 3
How these Persistently Broadly At scale
outcomes add demonstrated applied
value
Early scenario 1 Mid scenario 1 Late scenario 1
Early scenario 2 Mid scenario 2 Late scenario 2
Early scenario 3 Mid scenario 3 Late scenario 3

The core concepts provide a means to check for gaps (where a concept has not been invoked)
or duplication (where a concept has been used multiple times). Although the core concepts
provide a basis for verifying the completeness of the initial draft of the roadmap, multiple
invocations of concepts are inevitable in cases where different rows have different scope but
some overlap.
4.6 Core concepts
4.6.1 General
Each section in this roadmap includes relevant core concepts (also described in Annex A) that
state the fundamental concepts in as timeless (stage-free) a manner as possible for each track
of the roadmap.
4.6.2 Questions to bear in mind
It can be helpful for users to consider the following questions based on the core concepts as this
document is being read. These or other interrogatives can help make some of the entries in the
tables less conceptual and more concrete.
• Can you describe how the consistency of regulation across jurisdictions affects the minimum
requirements for implementing transactive systems both locally and regionally?
• When it comes to intra- and interjurisdictional market monitoring and oversight functions,
how shall directives be issued and who should be responsible for enforcing them?
• What types of incentives and opportunities for transactive energy systems do you think might
exist in the next two to three years and who do you think should be accountable for standards
of performance?
• Can you explain how to ensure that the alignment of business model values across the
participating entities is observable and auditable?
• From a TES perspective, what do you think are the important elements to include in any
standard set of definitions and structure for interfaces for anything-to-grid (X2G) operations
at all levels?
• Do you think the interactions with buildings and customer-managed grid within a building or
campus will be featured more prominently over time, and if so, what will be the drivers?

 ISO/IEC 2020
• What needs to happen to enable modelling and simulation solutions for TESs to produce
consistent results with each other and allow them to exchange data?
• How do you think the devices participating in TESs can support better measurement,
verification, and situational awareness of the electricity grid?
• What sort of markets and benefits might emerge that TESs can support in terms of
distributed devices securely integrating their actions into control schemes?
• What type of advances and services do we need that will enable consumer devices to
support sub-cycle to long-term market activities including operations support?
4.6.3 Benefits and enablers summary
Each of Clauses 5 to 8, which represent the four tracks, begins with an overview of selected
benefits and enablers from each track. Most of the roadmap comprises tables showing the
evolution of several concepts. Since this involves a large amount of information, this overview
presents a few examples of benefits and enablers for each track and presents them in the
form of a summary.
The examples in the tables were offered by the committee members who developed this
document. There are undoubtedly additional scenarios that could be added to this document
and these will naturally occur as technology, regulation, and businesses evolve.
It should be noted that, as the effects of DER increase and opportunities for TESs arise, the
customer base of TE expands as adoption scales up.
5 Regulatory and policy
5.1 General
This track describes the actions needed by regulators and other policy makers to enable TE
systems as envisioned in each of the three stages. The objective of the actions in this track is to
establish an environment that enables transacting parties to understand rules of engagement
and compensation in addition to performance requirements (and penalties for non-
performance). The actions also focus on achieving a consistent approach across jurisdictions
as much as possible to promote interoperability. The actions described can be carried out by
different policy-making bodies depending on the individual jurisdictions and types of utilities.
Many of the actions described in this track support development and implementation actions
described in the "business models and value realization" track, and to a limited extent, the
actions included in the "system design and architecture" and "physical and cyber technologies
and infrastructure" tracks. Regulatory and policy enablers and benefits are illustrated in
Figure 2.
– 14 – ISO/IEC TR 15067-3-7:2020
 ISO/IEC 2020
Figure 2 – Example benefits and enablers for the "regulatory and policy" track
5.2 Vision – what we hope to see at each stage
The vision(s) consists of conditions we expect to be realized over time as they relate to
regulatory and policy actions by regulators and other policy makers to enable TESs as
envisioned in each of the three stages. The main regulatory and policy (RP) concepts are listed
below.
• RP1 – Retail power markets are supported with non-discriminatory participation.
• RP2 – Regulation and minimum requirements are consistent from state to state.
• RP3 – Information and value (including real-time retail tariffs) are dynamically exchanged
between wholesale and retail markets across the transmission and distribution (T&D)
interface.
• RP4 – Intra- and interjurisdictional market monitoring and oversight functions are described
in policy (and regulation).
Characteristics of the regulatory and policy vision at each stage are shown in Table 5.

 ISO/IEC 2020
Table 5 – Regulatory and policy vision (RPV)
Reference Stage 1 Stage 2 Stage 3
Persistently demonstrated Broadly applied At scale
RPV01 Wholesale market transactive The existence of a well-defined Enhancement of bulk
DER interactions, where allowed, T&D interface from a regulatory power/wholesale market rules to
mainly through aggregators, with and market perspective that align system operational needs
no change in legacy market allows both a distribution-level with market-based incentives.
products and services developed market for individual participants
for the capabilities of and participation in the wholesale
conventional bulk generation / market for qualifying participants.
system operation resources.
RPV02 Questions from policy makers Several jurisdictions create Some jurisdictions have retail
regarding when and how to regulatory support for retail transactive energy market
create transactive retail markets. energy (and derivative) markets. regulations with (mostly)
consistent requirements and
terminology.
RPV03 Transactive exchanges available Evolution of new bulk power / Transactive DER participation in
in bulk-power bilateral and wholesale products and services bulk-power and wholesale
centralized wholesale markets, (flexibility reserves, ramping, markets based on bids and
stopping at the T&D interface, primary frequency response, offers.
with exceptions. synthetic inertia) along with
provisions for DER assets to
provide such services.
RPV04 Limited use of TE in distribution Geographic footprints of TE End-to-end transactive
except for pilots and proofs of trades expand over larger areas exchanges among prosumers
concept. of the country, creating within different layers of the
opportunity for wide-scale power distribution system as well as
purchase agreements. across the T&D interface.

5.3 Enablers – elements required if the vision is to be realized
Enablers are the elements that need to be in place to support and facilitate actions by
regulators and other policy makers to enable TE systems as envisioned in each of the three
stages. The main policy concepts are listed below.
• RP1 – Support exists for retail power markets with non-discriminatory participation.
• RP2 – Regulation and minimum requirements are consistent across jurisdictions.
• RP3 – Information and value (including real-time retail tariffs) are dynamically exchanged
between wholesale and retail markets across the T&D interface.
• RP4 – Intra- and interjurisdictional market monitoring and oversight functions are described
in policy (and regulation).
Characteristics of regulatory and policy enablers at each stage are shown in Table 6.

– 16 – ISO/IEC TR 15067-3-7:2020
 ISO/IEC 2020
Table 6 – Regulatory and policy enablers (RPEs)
Stage 1 Stage 2 Stage 3
Reference
Persistently demonstrated Broadly applied At scale
RPE01 Understand what cyber needs Balanced need for big data and Security, privacy, and non-
will be and determine cost of more sophisticated grid-edge discriminatory participation are
policies to correct inequities or data analysis with consumer addressed in policy at all levels.
barriers to access. privacy concerns and security.
RPE02 Analysis of steps required to Prioritized list of Common distribution system
enable T&D integration through interjurisdictional regulatory operator (DSO) approaches allow
rate-making policy. barriers between distribution consistent T&D integration.
markets to address.
RPE03 Documented opportunities and Opportunities and value Minimum standards identified to
value proposition of markets proposition for markets across allow for basic consistency of
each side of the T&D interface. the T&D interface. market rules between
jurisdictions.
RPE04 Minimal regulatory changes, but Active regulatory involvement, Coordinated regulatory
increased attention, including and new regulations to enable involvement opening the way for
development of streamlined TE. regional TESs.
interconnect agreement(s).
RPE05 Insights into operational cost Identify how cost and benefits Obligation to serve redefined for
inform how charge, billing, and are being created and TE markets.
rate structure can cover the distributed, and how to police
overhead transaction costs and bad actors where necessary;
identify incentives, regulations, possibly through software-
and dynamic rate definitions. defined rates and smart
contracts.
5.4 Results – outcomes made possible by new patterns of use
These results are important for realizing the benefits that can be created by regulators and other
policy makers to enable TESs as envisioned
...