System, method, and apparatus for settlement for participation in an electric power grid

1. A method for market-based financial settlement in an electric power grid, comprising:

at least one active grid element participating in the electric power grid by consuming power, supplying power, and/or curtailing power to provide operating reserves and/or grid stability for the electric power grid;

the at least one active grid element generating at least one kilowatt packet (KWP) unit based upon measured data for the participation of the at least one active grid element in the electric power grid;

the at least one active grid element transmitting at least one Internet Protocol (IP)-based settlement message to a settlement processor, wherein the at least one IP-based settlement message comprises the at least one KWP unit; and

the settlement processor providing a market-based financial settlement for the participation of the at least one active grid element based on the at least one KWP unit in real time or near real time.

2. The method of claim 1 , further comprising calculating at least one power supply value (PSV) for the at least one active grid element based on power consumed, supplied, and/or curtailed by the at least one active grid element.

3. The method of claim 2 , further comprising combining and aggregating the at least one KWP unit and the at least one PSV to form a minimum power trading block (PTB).

4. The method of claim 1 , wherein the at least one active grid element has a home location identifier and a nonhome location identifier, and wherein the market-based financial settlement is further based on factors and attributes for the participation of the at least one active grid element associated with the home location identifier and with the non-home location identifier.

5. The method of claim 1 , wherein the measured data is based on revenue grade metrology.

6. The method of claim 1 , wherein the at least one KWP unit provides a quantifying market rate for monetization for any unit of kilowatts with respect to time.

7. The method of claim 1 , further comprising a multiplicity of grid elements aggregating and/or integrating through the at least one active grid element, wherein the participation of the multiplicity of grid elements is operationally equivalent to a single grid element.

8. The method of claim 7 , further comprising the multiplicity of grid elements transforming into sub-grid elements upon the multiplicity of grid elements aggregating or integrating through the at least one active grid element, wherein the at least one IP-based settlement message includes information for a unique financial settlement that corresponds to each sub-grid element.

9. The method of claim 1 , further comprising assigning a customer identifier, a billing identifier, and/or a grid element unique identifier to the at least one active grid element for the market-based financial settlement.

10. The method of claim 9 , wherein the grid element unique identifier includes an IP address, an equipment identifier, a Media Access Control (MAC) address, location-based factors, time-based factors, grid-function-based factors, at least one grid reliability factor, and/or at least one grid stability factor.

11. The method of claim 1 , wherein the IP-based settlement message further comprises at least one of: a geodetic reference, an element identifier, a grid element type, a grid element function, a grid element capacity, a grid element profile, a grid element attachment point reference, a grid element balancing authority association, a grid element owner identifier, and/or a grid element compatibility identifier.

12. The method of claim 1 , wherein the market-based financial settlement is further based on factors for grid stability-based pricing, operating reserves-based pricing, peak and off-peak timing pricing, estimations, network models, real-time measurement of actual participation of the at least one grid element, and/or the losses associated with transmission, distribution, and/or resource nodes.

13. The method of claim 1 , further comprising a clearinghouse managing the market-based financial settlement.

14. The method of claim 1 , further comprising at least one resource settlement point providing a dynamic location for the market-based financial settlement within the electric power grid.

15. The method of claim 1 , wherein the at least one IP-based settlement message further comprises a priority of delivery.

16. The method of claim 1 , further comprising at least one coordinator aggregating and routing the at least one IP-based settlement message to the settlement processor.

17. The method of claim 1 , further comprising the at least one coordinator providing a priority flag to the at least one IP-based settlement message.

18. A system for market-based financial settlement in an electric power grid, comprising:

at least one active grid element and a settlement processor;

wherein the at least one active grid element is constructed and configured in network communication with the settlement processor in real time or near real time;

wherein the at least one active grid element participates in the electric power grid to provide operating reserves and/or grid stability for the electric power grid;

wherein the participation comprises consuming power from the electric power grid, supplying power to the electric power gird, and curtailing power from the electric power grid;

wherein the at least one active grid element is operable to generate at least one kilowatt packet (KWP) unit based upon measured data for the participation in the electric power grid;

wherein the at least one active grid element is operable to transmit at least one IP-based settlement message to the settlement processor;

wherein the settlement processor is operable to provide a market-based financial settlement for the participation of the at least one active grid element based on the at least one KWP unit in real time or near real time.

19. The system of claim 18 , wherein the at least one KWP unit provides a quantifying market rate for monetization for any unit of kilowatts with respect to time.

20. The system of claim 18 , wherein the measured data is based on revenue grade metrology.