New Heat Energy Trading Concepts for the Next Generation Smart Grids

Abstract

Modern electric power systems are heavily structured based on digital technology. Starting from the production point to the consuming point, all the sensing devices have a two-way communication that allows for quick and smooth actions to monitor, control, optimize, and protect the corresponding electric power grid with a fast response to any change in the system status. During the winter season, especially in cold countries, a big portion of non-electric energy is consumed for heating purposes. Such these alternative energy sources are: logs, solar, and biogas water heaters. In smart grids, the local trading strategy is possible between two entities, where the one that has a surplus energy can transfer it to others. However, the preceding non-electric forms of energy are still not traded between entities. This paper presents a new concept on how to make this type of nonclassical energy trading possible between entities. This concept can be considered as a basis for solving the missing link in managing electric and non-electric forms of energy in the next generation smart grids.