In this project we investigate the novel concept of green electricity and its utilization by consumers. Electricity is known as green if it is known to have been produced at renewable energy sources based on physical tracing mechanisms. Green power markets differ from the traditional electricity market structure in that electrical power, instead of being viewed as a single commodity, is separated into multiple products. In a voluntary market, each consumer can choose the portions of his or her energy demand that are accounted for by each generation source type offered in the market. Although consumers may not experience a difference in the performance or quality of the power they receive, attributes are assigned to the power based on its origin.
A purely financial and informational system is not sufficient for electricity trading. Tracking green electricity sales based on physical power flow is a requirement for a green energy market. In this market green accounting is based on the exact power flow equations of the electric grid, resulting in a physical market for green electricity, consolidating a physical market for green energy. Demand for green power would be more efficiently met by local green generation. This will encourage the addition of green capacity in more sectors of the nation, resulting in the expansion of renewable energy industries and the advancement of the technologies as they meet geographically diverse challenges. Green electricity is a market-based, direct mechanism to address carbon emissions.
This project combines the concepts of multi-commodity flow in electric networks with green electricity demand, providing real-time verifiable consumption of electricity from renewable sources. Although several technologies are being investigated and deployed to allow physical integration of renewable sources into the electric grid, a feasible mechanism that allows electricity product differentiation by source has not been proposed. Because the choice to purchase green energy ultimately lies with the end user, novel electricity tracing algorithms allow a new solution linked to this paradigm to be achieved.
Last revised on Aug. 25, 2011