Energy Community meets Data Science and IoT: to empower Consumers
(Original LinkedIn’s article)
BeChained will propel the creation and connection of Energy Community, as a source of its competitive advantage for upcoming shift to distributed generation of energy
An Energy Community is a digital aggregation of consumers and prosumers with common goals. The first common perception is to focus on economics: the energy bill.
Some of the common questions anyone is wondering are:
- how can I reduce my bill? am I paying energy at market price?
- can I afford next month bill?
- how can I know my punctual expenditure (or benefits in case you are a prosumer), rather than my end-month provision?
- what sources the energy I am using come from?
Essentially the main pains are:
- to reduce the cost of delivered energy to consumer,
- the lack of transparency towards consumers or prosumers
- the fight against the energy poverty
- not to rely on fossil fuels, as the aim to decarbonise the energy generation.
To aggregate consumers’ need into an Energy Community allows to acquire more bargain power (against Utility Firm) to improve tariffs.
But not only, accordingly with a recent change in Regulations, consumers are allowed to request to Utility Firms details about their consumption and their invoices.
Since the owner of the fiscal smart meter is the Distributors, the only recognized source of information is just this player. This is somehow a monopoly of information. Or from another perspective a lack of consumer’s data sovereignty?
In the era of digitalization, either the technology (hardware) and the software to acquire information from devices is ready to provide punctual data for consumption or production of energy. So, what is it missing to empower the consumers? The culture of consumers to revindicate their right to possess own data and the power (until now) of Dispatcher and Distributor not to release consumption data back to the legitimate proprietary. This is a historical statical supply chain, based on a centralized production and offer push system: nevertheless, the changes in the Regulations (Real Decreto 224/2019, April 5th 2019, which opened the door to collective electricity consumption) demonstrated the willingness to start breaking these historical barriers and to accord to consumers and prosumers a bit more information sovereignty.
It is the beginning of new business model where, empowering consumers, they will digitalize energy and environment, accordingly with their sensibility for a cleaner world (i.e. more power from neat and renewable sources). New environmental movements and Greta Thumberg rules as example of activism!
Nevertheless, also normal consumers can perform action to contribute, not only with words, to the Energy Transition, as the National Commitment to drastically reduce emissions from contaminating sources to generate energy, as well as to improve access to energy resources at an affordable cost.
What technology would help consumers and prosumers to an actionable and finally profitable plan to accelerate a transition from mainly nuclear and fossil fuel to renewable and clean energy generation?
The cheapest domestic technologies are: solar photovoltaic, thermo-solar for water warming, geothermic and aerothermic, micro wind turbines. Ultimately, all of them are proximity resources. Thus, no need to import or store. Whilst, on a larger scale, at least, solar photovoltaic plants, wind turbines, biomass.
That is why it is important to highlight that to generate energy and, above all, to govern its distribution and consumption from clean resources implies a zero-marginal cost economy, as Jeremy Rifkin theorized. By definition, the marginal cost is the cost of producing additional units of a good or service, if fixed costs are not counted. With adequate technological in your hands that might bring marginal costs to near zero, making goods and services priceless, nearly free, and abundant, and no longer subject to market forces.
to govern its distribution and consumption from clean resources implies a zero-marginal cost economy
Thus, in an Energy Community, prosumers, as the energy (electricity) generators, will meet consumers to compensate their production excess as high priority destination. This means that the Community’s self consumption will come first, on top of market needs or speculation.
For this reason, the priority for a correct governance is that the micro grid will be balanced anytime as the Community would be isolated from the Nation-wide Grid. If there would be a further need from Demand side, there would be the need to absorb from the Country Grid. Otherwise if the Energy Community generates more than Demand, condition that should be reasonable in a domestic environment when people is outside their houses for working reason, the surplus is injected back to the Distributor Grid.
Priority for a correct governance is that the micro grid will be balanced anytime
For this reason, at Country level, the more the generation will be decentralized, the more it is required a neural governance to balance in real time all the interconnected Micro-Grid (such as the Energy Community’s) jointly with the Backbone Energy Grid. Tecnalogic‘s patented AI algorithms master this goal, as they anticipated the upcoming trendy challenge for all the Grid around the World.
BeChained want to create a marketplace for electricity from renewables based on Tecnalogic’s experience: this is a disrupting choice as it pretends to change the paradigm of energy generation (from centralized to distributed), distribution and consumption.
These patents, granted at least in Europe, USA and Russia, define a breakthrough methodology to optimize the electricity governance (either its economic and physical components) based on production cycle programming. They join IoT (interconnected Smart meters), Data Science (AI algorithms) applied to the conceptual basis of Smart Grids: its power relies on the transformation of Energy Grid and the other Micro-Grid into a Neural Grid by a programmed governance, which takes decision in real time over the ingested data and not as a forecast.
These algorithms are developed to dynamically balance Demand and Response, based on focused actions on each consumption unit (an house, a building, an industrial plan, …). They reduce to possibility or the risk of an unbalanced grid to zero, as they always find someone compensating their need (as actionable outcomes).
Virtual aggregation architecture
At the basis of this approach, there is a new energy flexibility policy, opening new scenarios in Europe: for instance, in Italy, Terna (as the Grid Responsible Operator) started some project and asset for Dispatching Market (UVAM, as Unità Virtuali Abilitate Miste or Mixed Virtual Enabled Unity) as aggregation form for not relevant production units and consumption units for the Energy Grid.
As the platform is focused on domestic and industrial needs, from consumers, to Operators (ESCO and Utility) and to Aggregators (Balance Service Provider, almost any aggregation opportunity can fall into.
Under this premise, BeChained’s marketplace the plays the role of Demand Side Response Aggregator for the previously defined Energy Community. For this reason, it configures itself as a consumer-centric platform to satisfy primarily its clients’ need
- to be supplied for the needed energy,
- to maximize their economic benefits
- to maximize their access to this critical resource
- to minimize the need of fossil fuel electricity, as the generation is funneled only from renewable sources
Consumers and prosumers will become fully aware of their decision and action, as the platform already had guaranteed transparency and security of each energy transaction
Finally, BeChained committed to fairly evaluate consumers’ data to return them back to their origin in a more readable and intelligible way.
Thus, consumers and prosumers will receive insight (in real time) to take decision upon:
- how to act to maximize their benefits (thanks to actionable suggestion)
- how to consume more responsibly
- how much they already spent or gain.
So, the most important pillar of BeChained’s marketplace is that consumers and prosumers will become fully aware of their decision and action, as the platform already had guaranteed transparency and security of each energy transaction (through a hybrid blockchain engine).