The Seven-Layer Grid Stack – One Pager

The Seven-Layer Grid Stack

This framework describes how the modern grid operates across seven distinct but interconnected layers, from physical assets to balance-sheet companies.

LayerRoleKey MetricsTypical Owners/Examples1. Physical ResponseControl of physical assets (batteries, miners, flexible industrial load, VPP fleets)kW / MW under control; uptime and response timesOEMs, IPPs, miners, VPP operators2. Market AccessRights and tooling to bid into ISO/RTO wholesale marketsNumber of markets, bid types supportedDemand response aggregators, traders3. Risk WarehouseData and models for nodal prices, variance/covariance, and portfolio riskData coverage (nodes, time), risk metricsAnalytics vendors, trading shops4. Tokenized CapacityMinting of PoC, FCE, 24/7 CFE, and similar primitives from real eventsMWh tokenized, audit qualityTraverse, FlexiDAO, others5. Synthetic ProductsDerivatives and structured products built on tokens and grid dataNotional traded, liquidity, spreadSpecialist desks, Layer 5 startups6. Agentic RailsAI/agent systems that act on behalf of devices or portfolios in marketsNumber of active agents, automated P&LVPP agents, autopilot trading systems7. Balance-Sheet CompanyIntegrated entity that owns or underwrites across layers 1–6 and keeps most of the marginROE, total assets under management, TWh servicedThe "grid balance-sheet company" species Related Reading

• The Missing Layer Nobody Is Building Yet
• From Dashboards to Derivatives: The 7-Layer Playbook
• The Collision Course