Real-Time Energy Markets
“How is energy traded in real-time?”
Because energy is such a critical infrastructure, it needs to be planned out and purchased ahead of time. However, not all predictions are perfect, and sometimes energy needs to be provided the day of. This results in the creation of a Real-Time Energy Market where energy can be traded quickly to meet system needs. The purchasing costs of energy in real time tends to be more expensive and price volatile than its day-ahead equivalent.
Day-Ahead Energy Markets
“How can energy be purchased a day before it is produced?”
Energy is one of the most important facets of our civilization. So much so that it has to be predicted a day ahead of time to assure system stability. Since energy needs can be predicted a day ahead of time, energy can also be purchased wholesale by market participants a day beforehand. Although energy is purchased, it does not need to be generated in case the predicted need comes out to be lower. These Day-Ahead Energy Markets are used to ensure energy price stability.
Cross-Border Energy Trading
“How can energy be traded across borders?”
Energy is one of the most vital resources on the planet. But unfortunately, it is constrained by national borders. However, as energy systems evolve, so will the policy around them. Already, resource-constrained states and nations are in talks with trading energy with their overcapacity neighbors. This is developing in areas from the Western United States with California’s solar potential in the summer and its neighbor’s vast hydropower and wind reservoirs in the Winter and India with Neap, Sri Lanka, and Bangladesh. Hopefully, Cross-Border Energy Trading will become more prominent in bringing peace, security, and resilience between nations.
Energy Storage Mandates
“How can governments use policy to increase the amount of storage on the grid?”
`Energy storage is one of the hottest things in the energy world right now. But despite its seemingly invincible potential, it still needs government action to come online. One clever way to do this is to make a policy stipulating that utilities need to adopt a certain amount of energy storage through an Energy Storage Mandate. This is commonly implemented in California and other governments to meet their carbon neutrality goals.
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“How can we have an energy tariff that charges both at a fixed and proportional rate?”
Energy tariffs come in all shapes and sizes. One of the most interesting ones is those that not only charge at a proportional rate but also at a fixed rate. This Two-Part Tariff can be used in the case of optimization for grid network loads.
How Blockchain Can Improve Energy Security
“How can we improve energy security with blockchain?”
With the advent of the renewable energy revolution, energy is becoming more and more distributed and intermittent. As such, many consumers, utilities, and companies are pushing for energy systems to become more autonomously operated to better integrate these resources. However, the difficulty to keep track of all energy coming in and out could open up a number of security backdoors, allowing for malicious hackers to penetrate critical infrastructure. To combat this, blockchain technology can be implemented by tagging and keeping track of where energy comes from and goes to. This is How Blockchain Can Improve Energy Security.
“How can we have hydropower on a small scale?”
When hydropower is brought up, large damns and massive turbines are often pictured in many people’s minds. However, it tuns out that hydropower can be implemented on a much smaller scale. If hydropower infrastructure is under 10 MW, then it is classified as Small Hydropower in the United States. Small Hydropower can be established in a much more distributed and spread-out fashion.