Bi-directional Communication Resource Allocation System
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Traditional power grid management approaches result in low asset utilization due to sizing components to meet peak demand, leading to inefficiencies and high costs, with a need for improved systems that allow end-use devices to actively participate in grid control and optimize resource allocation.
Innovation Solution
A nested, hierarchical resource allocation scheme using bi-directional communication to match supply and demand at multiple levels within a transactive network, enabling dynamic pricing and resource dispatch based on consumer and supplier requests and offers, with computing methods to determine optimal dispatch index values.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If power generation, transmission, and distribution components are sized to meet peak demand, then system reliability is improved, but asset utilization deteriorates
Solution Approach 1:
The patent implements dynamic pricing signals that fluctuate based on real-time supply and demand conditions, enabling flexible response from demand-side resources. This dynamic approach allows the system to maintain reliability during peak periods while encouraging load reduction during off-peak periods, thereby improving asset utilization without compromising system reliability.
Solution Approach 2:
The patent establishes a feedback mechanism where pricing signals are continuously adjusted based on grid conditions, and consumer responses feed back into system operations. This closed-loop control enables the system to adapt to changing conditions, optimizing asset utilization while maintaining reliability through real-time adjustments rather than static sizing.
2Device complexity
If traditional power grid management approaches are used, then system simplicity is maintained, but resource allocation efficiency deteriorates
Solution Approach 1:
The patent enables demand-side resources to actively participate in grid control by responding to pricing signals. Consumers use their own resources (distributed generation, storage, flexible loads) to respond to market signals, eliminating the need for complex centralized dispatch while improving resource allocation efficiency through decentralized, market-driven mechanisms.
Solution Approach 2:
The patent segments the power system into multiple independent actors (suppliers, consumers, distributed resources) that interact through market mechanisms. This segmentation allows each entity to operate independently while collectively achieving efficient resource allocation, replacing complex centralized control with simpler market-based coordination.
3Productivity
If distributed resources are integrated into grid control, then asset utilization is improved, but communication requirements increase
Solution Approach 1:
The patent employs a universal communication protocol and standardized pricing signal mechanism that can be used across all distributed resources and consumers. This multi-functional approach allows the same communication infrastructure to handle various types of resources (generation, storage, loads) without requiring specialized communication systems, thereby improving asset utilization while keeping communication requirements manageable.
Data Source
AI summary
Disclosed herein are representative embodiments of methods, apparatus, and systems for distributing a resource (such as electricity) using a resource allocation system. In one exemplary embodiment, a plurality of requests for electricity are received from a plurality of end-use consumers. The requests indicate a requested quantity of electricity and a consumer-requested index value indicative of a maximum price a respective end-use consumer will pay for the requested quantity of electricity. A plurality of offers for supplying electricity are received from a plurality of resource suppliers. The offers indicate an offered quantity of electricity and a supplier-requested index value indicative of a minimum price for which a respective supplier will produce the offered quantity of electricity. A dispatched index value is computed at which electricity is to be supplied based at least in part on the consumer-requested index values and the supplier-requested index values.