Power systems build on principles of the IDEA architecture are:

Transactional

Economic interactions between users should be based on peer-to-peer-transactions that allow implementation of wide range of services that provide users with customized values. Within this paradigm the users can play various roles.

Smart

Simplicity of integration (plug and play) of power equipment into the loops of automated control of various services.

Sustainable and flexible

Physical connection of equipment units with the grid should be established in a convenient and user-friendly way using plug and play technologies to ensure static and dynamic stability of the system where large number of devices and equipment units influence each other.

Internet of Energy architecture is based on the unity of three systems.

Transactive energy — the system where smart contracts are composed, implemented and paid.

Internet of Things — the system of machine-to-machine interaction and exchange of control actions between power cells and power equipment.

Neural Grid — the system that provides mode control, power balance maintenance, and ensures static and dynamic stability of power grid.

Users interact with Internet of Energy.

via Applications that create smart contracts on Transactive Energy platform.

The data related to the smart contract terms and conditions is transferred from the Transactive Energy system to the Internet of Things system, which synchronizes the work of power cells.

The Internet of Things system sends the mode parameters to the equipment of the Neural Grid system.

The Neural Grid system sets the new mode and sends the actual data related to electrical mode back to the Internet of Things system.

The Internet of Things system confirms the completion of smart contract created in the Transactive Energy system.

The Transactive Energy system will reallocate the money among the Users according to the smart contract terms.

If the Neural Grid system can’t set the required mode, it requests a reserve power via the TE system.

The Internet of Energy represents a system of systems.

Internet of Energy via the Neural Grid system connects to electrical grid and centralized power system.

Power cell is formed by pools of electric power facilities and equipment that have a single point of connection to electrical grids and all three systems – TE, IoT and NG.

Conventional automated control systems can exchange data with the applications.

Here is the Internet of Energy concept based on IDEA Architecture.