Dynamic Baseline Energy Asset Model for Wholesale Market Revenue
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Solution Overview
Problem
Current methods for determining revenue in wholesale electricity markets are limited by historical actual-use-based customer baselines, which can lead to inaccurate estimates and discourage participation due to disincentives and artificial inflation of energy usage, undermining the goal of reducing electricity usage and decreasing potential revenue over time.
Innovation Solution
A mathematical optimization process is employed to determine a suggested operating schedule for energy assets, using a simulated customer baseline energy profile based on physical attributes and real-time feedback, which adapts to current conditions and minimizes net energy-related costs, allowing energy customers to optimize their energy usage and generation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If historical actual-use-based customer baselines are used to determine revenue in wholesale electricity markets, then revenue can be calculated based on past usage data, but accuracy deteriorates and participation is discouraged due to artificial inflation of energy usage
Solution Approach 1:
The patent implements a dynamic baseline that adapts to changing conditions rather than relying on static historical data. The system continuously updates the baseline to reflect current operational patterns and market conditions, preventing artificial inflation while maintaining accuracy in revenue determination.
Solution Approach 2:
The patent creates a simulated baseline that replicates expected energy usage patterns under normal conditions, rather than directly using historical actual usage data. This simulated copy allows for accurate revenue calculation without the distortions present in historical data.
2Ease of operation
If historical actual-use-based customer baselines are used, then revenue determination can be simplified, but energy usage reduction goals are undermined and participation is discouraged
Solution Approach 1:
The system uses a simulated baseline that copies expected usage patterns, providing both simplicity in calculation and accuracy in measuring real energy reduction achievements, thereby supporting both ease of operation and productivity goals.
Solution Approach 2:
The system implements feedback mechanisms that continuously monitor and adjust the baseline based on actual performance, ensuring that energy usage reduction goals are met while maintaining simple revenue determination processes.
3Device complexity
If static historical baselines are used for revenue calculation, then calculation complexity is reduced, but adaptability to current conditions deteriorates
Solution Approach 1:
The patent implements a dynamic baseline calculation system that automatically adapts to current conditions while maintaining reasonable computational complexity through efficient algorithms and data structures.
Solution Approach 2:
The system performs preliminary actions by pre-calculating and storing baseline parameters that can be quickly applied to current conditions, reducing real-time calculation complexity while maintaining adaptability.
Data Source
AI summary
The apparatus, systems and methods herein facilitate generation of energy-related revenue for an energy customer of an electricity supplier. The apparatuses and methods herein can be used to generate suggested operating schedules for the energy assets that including a controllable energy asset, using an objective function. The objective function is determined based on a dynamic simulation model of the energy profile of the energy assets. The dynamic simulation model is adaptive to physical changes in the energy assets based on a parametric estimation using at least one model parameter. The model parameter is at least one of an operation characteristic of the controllable energy asset, a thermodynamic property of the energy assets, and a projected environmental condition. Energy-related revenue available to the energy customer is based at least in part on a wholesale electricity market or on a regulation market.