Virtual Power Collective Accounting for Fair Distributed Generation
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
The existing power distribution and accounting systems do not fairly compensate consumers for their locally generated electricity, as the compensation rate is often lower than the rate charged for grid electricity, leading to economic constraints on the size of home or business solar panel installations.
Innovation Solution
A method and system where each facility's power contribution is recorded, tallied, and time-stamped by independent auditing bodies, allowing the formation of virtual electricity suppliers, and using encrypted data with public key cryptographic systems to securely communicate and compensate facilities based on their electricity contributions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If consumers generate their own electricity through local facilities (e.g., solar panels), then they can reduce dependence on the grid and potentially save money, but the compensation rate for electricity supplied back to the grid is much lower than the rate charged for grid electricity, creating an economic constraint on installation size
Solution Approach 1:
The patent segments the power generation and accounting functions by introducing independent auditing bodies that separately measure and verify electricity contributions from each facility. This segmentation enables transparent tracking of power generation, consumption, and contribution, allowing for fair compensation mechanisms that reflect actual usage patterns rather than uniform grid rates.
Solution Approach 2:
The patent introduces independent auditing bodies as intermediaries between power generators and the grid provider. These intermediaries objectively measure and verify electricity contributions, preventing arbitrary compensation decisions by the grid provider and ensuring fair treatment of distributed generation facilities.
2Quantity of substance
If the grid provider determines compensation rates for electricity contributions, then they can control their costs and profits, but this leads to unfair compensation that discourages investment in larger local generation installations
Solution Approach 1:
The patent implements preliminary measurement and verification of electricity contributions by independent auditing bodies before compensation is determined. By pre-establishing accurate measurement of power generation, consumption, and net contribution, the system enables compensation rates that reflect actual facility performance, making larger installations economically viable.
Solution Approach 2:
The patent establishes a feedback mechanism where independent auditing bodies continuously monitor and report electricity contributions from each facility. This feedback loop enables dynamic compensation adjustments based on actual performance data, ensuring that larger installations receive appropriate compensation that reflects their greater contribution to the grid.
3Measurement precision
If traditional electricity meters are used to measure power consumption, then they can accurately track grid electricity usage, but they cannot adequately account for power generated and supplied back to the grid by local facilities
Solution Approach 1:
The patent upgrades traditional electricity meters to multi-functional devices that can simultaneously measure both power consumption from the grid and power contribution to the grid. These enhanced meters serve multiple functions: tracking consumption, measuring generation, calculating net contribution, and providing data to independent auditing bodies, replacing the need for separate measurement systems.
Data Source
AI summary
A method of accounting for electrical power contribution and consumption is presented. The method comprises receiving information, from a plurality of facilities, wherein the plurality of facilities is operable to generate and/or consume electricity, and wherein the data comprises information concerning electricity contributions to a power grid, and/or consumptions from the grid by the plurality of facilities. The method further comprises applying a robust system of cryptographic processes to said information concerning electricity contributions, and attest to the authenticity of the information, as well as to the correct attribution of the facility claimed. Finally, the method comprises tracking and accounting electricity contributions and/or consumptions from each of the plurality of facilities using decrypted and verified information in a manner that allows contributions to be independently verified through audits. The method can also comprise compensating each of the facilities based on the respective electricity contribution and/or consumption of each facility.