Grid Element Settlement Coordination for Real-Time Energy Compensation
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Solution Overview
Problem
Current electric power grid management systems lack real-time registration and financial settlement capabilities for grid elements, leading to inefficiencies and inaccuracies in tracking and compensating micro-scale energy contributions, with costs often borne by consumers rather than utility providers.
Innovation Solution
A system that registers grid elements through network-based communication with a Coordinator, enabling real-time settlement and compensation for participation in the electric power grid, using IP-based messaging for communication with EMS, DMS, and utilities, transforming grid elements into active participants that can supply, curtail load, or provide energy storage, and facilitating market-pricing-based settlement.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If manual and non-real-time settlement systems are used for macro energy supply, then system complexity is reduced, but measurement precision and settlement accuracy deteriorate due to estimation and modeled data
Solution Approach 1:
The patent replaces manual settlement processes with automated electronic settlement systems. The system automatically collects, processes, and settles energy transactions in real-time using electronic data exchange between distributed energy resources, utility companies, and settlement processors, eliminating manual estimation and modeling operations.
Solution Approach 2:
The patent introduces settlement processors and data exchange intermediaries that facilitate accurate real-time settlement between distributed energy resources and utility companies. These intermediaries standardize data formats, validate transactions, and ensure accurate compensation without requiring direct complex interactions between all system participants.
2Productivity
If real-time registration and settlement systems are implemented for grid elements, then productivity and energy management efficiency improve, but device complexity increases due to network-based communication and tracking infrastructure
Solution Approach 1:
The patent creates a universal communication framework where standardized protocols enable diverse grid elements (distributed energy resources, storage systems, electric vehicles) to participate in real-time settlement. The system handles multiple functions including registration, monitoring, data exchange, and settlement processing through a unified platform.
Solution Approach 2:
The patent divides the settlement system into modular components: grid element registration modules, data collection modules, settlement processing modules, and compensation distribution modules. This segmentation allows the system to scale incrementally and reduces overall complexity by isolating specific functions into independent units.
3Adaptability or versatility
If micro-scale distributed energy resources are integrated into the grid, then adaptability and energy supply diversity improve, but loss of information increases due to lack of tracking and data collection capabilities
Solution Approach 1:
The patent implements continuous feedback loops where distributed energy resources report their operational status, energy production, and consumption data to the settlement system in real-time. The system processes this feedback and provides compensation signals back to participants, ensuring accurate tracking and information retention throughout the energy ecosystem.
Solution Approach 2:
The patent requires preliminary registration of all distributed energy resources with the settlement system before they can participate in energy transactions. This preliminary action establishes unique identifiers, communication protocols, and data exchange parameters, ensuring that tracking information is captured from the outset rather than attempting to retroactively collect data.
4Ease of operation
If traditional settlement systems spread transmission and distribution losses across consumers, then ease of operation is maintained, but object-generated harmful factors increase as consumers bear costs for inefficiencies beyond their control
Solution Approach 1:
The patent implements location-specific settlement where distributed energy resources are compensated based on their actual energy production and contribution at their specific grid connection points. Transmission and distribution losses are tracked and allocated to the entities responsible for causing them, rather than being uniformly spread across all consumers. This creates localized accountability and fair cost distribution.
Data Source
AI summary
Systems, methods, and apparatus embodiments for electric power grid and network registration and management of physical and financial settlement for participation of active grid elements in supply and/or curtailment of power. Settlement is provided for grid elements that participate in the electric power grid following initial registration of each grid element with the system, preferably through network-based communication between the grid elements and a coordinator, either in coordination with or outside of an IP-based communications network router. A multiplicity of active grid elements function in the grid for supply capacity, supply and/or load curtailment as supply or capacity, and are compensated through settlement for their functional participation in the electric power grid. Also, messaging related to settlement is managed through a network by a Coordinator using IP messaging for communication with the grid elements, with the energy management system (EMS), and with the utilities, market participants, and/or grid operators.