Many people are well aware of transactive energy (TE) and flexibility. These issues have been topics of discussion for a decade. Since 2016, a rash of startups have announced plans to launch TE platforms. Most companies secure only a single project. Others fail to secure a single project. With the market 4 years old, a handful of vendors are emerging as leading players and are active in multiple markets worldwide.

Previous reports have introduced TE and opportunities and expectations for TE markets. Though TE has been considered for distribution network management for almost 2 decades, the market started to take off in 2016. With no mature business model, it is difficult to attribute specific revenue streams to TE. However, it is possible to provide a realistic assumption on total addressable market. This study investigates market factors that potentially hold influence.

This Navigant Research report complements previous work by discussing current developments in TE. Particularly significant developments include the regulatory hurdles that have slowed the growth of the sector, the difficulty startups face when attempting to scale beyond proofs of concept, and how TE is shifting from true peer-to-peer (P2P) trading to an innovative use of consumption and production data to better engage customers. The study includes a revised potential size of the future global TE market. Market forecasts, segmented by total addressable markets for residential and C&I customers extend through 2028.