For decades, energy has closely followed the law of supply and demand, with these factors being the primary drivers behind pricing. In recent years, however, with the rise of distributed clean energy resources, new drivers have emerged – from weather to device parameter constraints to transmission limitations – that also impact the supply and price of electricity.
In addition, utilities and independent operators must now contend with the fact that:
- Growing populations and dependence upon technology are creating more global demand for electricity.
- From wind turbines to solar PV to batteries, more distributed energy systems are now connecting to the grid than ever before.
- Weather conditions worldwide are becoming less predictable (with grid outages and service disruptions becoming more frequent).
Managing this growing volatility is increasingly beyond the scope of human actors. But analyzing millions of data points in real-time is well within the realm of today’s technology. When deployed correctly, artificial intelligence (AI) and machine learning not only allow for a more resilient grid, but they also enable independent operators to buy energy whenever it’s cheapest – and sell it whenever it is most lucrative to do so.
This is especially true when using Veritone’s suite of AI-powered tools to automate decisions normally left to grid operators.
A Smarter Way to Buy and Sell Energy?
Veritone’s AI-based energy solutions use adaptive machine learning to determine the optimal supply and price of energy to meet grid demand – both now and in the future.
More specifically, Veritone’s:
- Forecasting software (Forecaster) collects real-time data from weather databases and utility management systems to predict future energy supply, demand, and pricing (even as all 3 evolve).
- Energy optimization software (Optimizer) uses these real-time predictions to build and continuously update device models that maximize performance – both at the grid level and across distributed energy resources like solar PV, batteries, microgrids, and wind farms.
- Controller software uses data from Forecaster & Optimizer to control power sent and received from edge-devices, and synchronize those edge-devices with the existing network, to reduce imbalances and make the entire grid more stable and predictable.
Together, these powerful tools move us closer to the holy grail of the industry – a virtual power plant (VPP) in which all grid-connected energy assets work in concert to deliver the right amount of electricity at the right time, place, and price.
However, there is one final component of Veritone’s Energy Solutions – one that brings the above pieces together for independent energy providers.
Arbitrage: Predictive Energy Buying, Selling, and Dispatch
Veritone’s energy arbitrage software (Arbitrage) allows independent system operators, distributor system operators, load service entities, and emergency management systems to buy energy when it’s cheapest and sell it when it’s most valuable – using real-time trading software. Arbitrage achieves this by collecting Forecaster data and letting Optimizer generate different “dispatch” directives for Controller to send to all grid resources within the network.
This approach creates unprecedented opportunities to supply VPP’s, aggregated residential communities, and commercial building microgrids with reliable energy by automatically topping up batteries when grid energy prices are low – and selling renewable power back to utilities in the early evenings when electricity rates are higher.
Whereas Forecaster, Optimizer, and Controller work together to make the grid more reliable, Arbitrage is what ensures those within the network receive the best possible pricing for the energy they consume (or sell).
With this real-time and fully automated software tool, however, you also gain a powerful competitive advantage on energy exchanges. Arbitrage allows you to buy or sell based on short-, medium-, or long-term pricing – while factoring in both grid conditions and wholesale energy markets. In fact, Arbitrage’s real-time trading software was originally built for stock trading. And it integrates seamlessly with many of the most popular energy exchanges.
Is Veritone Arbitrage Right for You?
As the world races to decarbonize, the grid will become greener. But it will also become increasingly difficult to manage as grid operators wrestle with more and more renewable energy assets – many of which are behind-the-meter, and nearly all of which are intermittent.
Veritone’s Arbitrage software combines the power of machine learning and automation so that you can buy, sell, and dispatch energy based on real-time predictions of supply, demand, and pricing.