Energy Reduction Calculator for Demand Response Incentives
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Solution Overview
Problem
In demand response systems, energy consumers lack a means to accurately determine the proper amount of energy reduction in relation to the incentive unit price, leading to potential losses and the need for additional hardware solutions.
Innovation Solution
A received energy reduction information calculation apparatus and method that includes an energy predictor and a reduction information calculator, which determine a prediction of energy supply or consumption and calculate the reduction amount based on an expected incentive fee, optimizing the operating schedule of energy-consuming and energy-supplying equipment to minimize energy fees.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If the incentive unit price is fixed by the energy supplier, then the supply-side control is simplified, but the energy consumer cannot accurately determine the proper reduction amount and may incur losses
Solution Approach 1:
An information processing device acts as an intermediary between the energy supplier and energy consumer. The device receives the fixed incentive unit price from the supplier, calculates the optimal energy reduction amount based on this price, and provides the calculation result to the consumer. This mediator resolves the information asymmetry without requiring changes to the supplier's fixed pricing approach.
Solution Approach 2:
The energy consumer uses the information processing device to independently calculate and determine their own optimal reduction amount based on the incentive unit price. The consumer serves themselves by obtaining accurate reduction amount information without needing complex hardware installations or expert knowledge, thereby avoiding potential losses.
2Device complexity
If energy consumers determine reduction amount from long experience, then no additional hardware is needed, but the determination is approximate and may result in losses
Solution Approach 1:
The patent replaces the mechanical/experiential method of determination with an information processing system. Instead of relying on human experience and approximation, the system uses automated calculations based on the incentive unit price to provide precise reduction amount information, significantly improving accuracy without adding physical hardware to the energy consumption devices themselves.
Solution Approach 2:
The information processing device creates a computational model or copy of the relationship between incentive unit price and optimal reduction amount. By processing the price information through calculation algorithms, the system generates accurate reduction amount recommendations without requiring physical measurement devices or complex hardware installations at the consumer premises.
3Adaptability or versatility
If bidding-type demand response is implemented, then market-based energy optimization is achieved, but the consumer lacks means to grasp proper reduction amount in relation to incentive price
Solution Approach 1:
The information processing device provides feedback to the energy consumer by calculating and presenting the optimal reduction amount corresponding to the incentive unit price in the bidding-type demand response system. This feedback loop enables the consumer to make informed bidding decisions by understanding the direct relationship between the incentive price and the reduction amount they should target, thereby participating effectively in the market-based optimization.
Data Source
AI summary
A received electric power reduction information calculation apparatus (corresponding to an example of a received energy reduction information calculation apparatus) has an energy predictor and a reduction information calculator. The energy predictor predicts a prediction amount of at least one of energy supply and energy consumption in a future prescribed time period with respect to at least one of an energy-supplying equipment and an energy-consuming equipment, based on a request for reduction of the received energy. The reduction information calculator calculates the reduction amount of the received energy associated with the prediction amount, based on an energy fee reflected from an expected fee of incentive with respect to the reduction request of the received energy.