Hierarchical Power Grid Pricing for Asset Utilization
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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 distribution systems that allow end-use devices to actively participate in grid control.
Innovation Solution
A nested, hierarchical resource allocation system that receives requests and offers for electrical power from users and suppliers, determining unique prices for each feeder network based on market dynamics, incorporating price-responsive devices and reserve power generators, and adjusting prices periodically to optimize resource allocation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If system components are sized to meet peak demand, then reliability is improved, but asset utilization deteriorates
Solution Approach 1:
The patent implements dynamic pricing that changes over time to reflect varying demand conditions. During peak demand periods, higher prices incentivize demand reduction, while during off-peak periods, lower prices encourage consumption. This dynamic approach allows the system to maintain reliability during peak times while improving asset utilization during off-peak times, resolving the contradiction between reliability and productivity.
Solution Approach 2:
The patent changes the price parameter based on time of day, demand levels, and system conditions. By adjusting prices dynamically, the system influences consumer behavior to shift demand away from peak periods, thereby improving asset utilization without compromising reliability. The price parameter serves as a control mechanism that balances reliability and productivity objectives.
2Stability of the object's composition
If traditional power grid management is used, then system stability is maintained, but cost increases
Solution Approach 1:
The patent implements a feedback mechanism where real-time pricing signals are provided to consumers based on system conditions, and consumer responses are fed back into the system to adjust pricing and dispatch decisions. This feedback loop enables the system to maintain stability through market-based mechanisms while reducing costs by efficiently matching supply and demand without requiring expensive infrastructure expansions.
Solution Approach 2:
The patent empowers consumers to actively participate in grid management by responding to price signals and making informed decisions about their consumption patterns. Through demand response programs and real-time pricing information, consumers self-adjust their usage to optimize system efficiency, reducing the need for costly traditional management approaches while maintaining grid stability.
3Productivity
If end-use devices actively participate in grid control, then asset utilization improves, but device complexity increases
Solution Approach 1:
The patent introduces an intermediary layer (the pricing system and control infrastructure) that manages the complexity of coordinating end-use devices. Rather than requiring direct complex interactions between devices, the intermediary pricing mechanism translates system needs into simple price signals that devices can respond to, thereby improving asset utilization without imposing excessive complexity on individual devices.
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 system is disclosed comprising a first feeder network configured to deliver electrical power to a first plurality of customers. The first feeder network is controlled by a first market-based pricing system that computes a first feeder network price of electrical power at first periodic intervals. The system of this embodiment further comprises a second feeder network configured to deliver electrical power to a second plurality of customers. The second feeder network is controlled by a second market-based pricing system that computes a second feeder network price of electrical power at second periodic intervals. In this exemplary embodiment, the first feeder network and the second feeder network are part of a same distribution network, and the first feeder network price of electrical power is different than the second feeder network price of electrical power.