Transactive Energy refers to the economic and control techniques used to manage the flow or exchange of energy within an existing electric power system. Transactive energy describes a system where anyone can trade electricity on the grid. Through this system, traditional consumers can generate electricity and sell their excess capacity back into the grid. Electrical grids, which distribute electricity from producers to consumers, are evolving into smart grids which enable decentralization. This move away from a centralized grid, towards a decentralized network of nodes will allow for a more efficient electricity grid. This grid will leverage more renewable generation assets as well.