Breaking the inertia: a dynamic energy market
We've all learned about it in our high school economics classes: prices of products and services are influenced by supply and demand. However, this simple economic truth does not always apply to the energy market. Both supply and demand of electricity can vary by the hour or even minute. The market simply cannot keep up.
High demand peeks and green energy
There are large peeks in demand, for instance during business hours. But supply also fluctuates more and more, with individuals generating their own green power. The energy market is not able to adapt its prices quickly enough.
Another problem is that the energy grid must be able to handle large peeks, since it is very difficult to control supply or demand.
The INERTIA project, which kicks off this month, aims to solve this problem of 'inertia' in the energy market.
The project proposes an 'Internet-of-Things-approach'. Consumers are transformed into 'prosumers', active nodes in the energy network, who send and receive information about their energy supply and demand. This way, distribution companies gain better insight into the energy market, and can adapt accordingly. The prosumers, too, can be encouraged to adapt their behaviour, shaving the peeks and creating a more balanced energy grid.