System, method and computer program product for risk-minimization and mutual insurance relations in meteorology dependent activities

• US 7,430,534 B2
• Filed: 12/21/2001
• Issued: 09/30/2008
• Est. Priority Date: 06/15/2001
• Status: Active Grant

• Current Assignee: Hitachi Energy Limited (Hitachi, Ltd.)
• Original Assignee: ABB AB (ABB Limited)
• Inventors: Lof, Per-Anders K., Wigert, Peter, Lundquist, Frans, Andren, Lars Anders T., Gertmar, Lars Gustaf I.
• Primary Examiner(s): Trammell; James P.
• Assistant Examiner(s): APPLE, KIRSTEN SACHWITZ
• Application Number:
  US10/023,899
• Publication Number:
  US 20020194113A1
• Time in Patent Office: 2,475 Days
• Field of Search: 705/36.R, 705 35- 45, 705/22
• US Class Current: 705/37
• CPC Class Codes: G01W 1/10 Devices for predicting weather conditions computers per se G06; display devices G09
• CPC Class Codes: G06Q 10/043 Optimisation of two dimensional placement, e.g. cutting of clothes or wood
• CPC Class Codes: G06Q 20/203 Inventory monitoring
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/06 Energy or water supply
• CPC Class Codes: Y02P 90/90 Financial instruments for climate change mitigation, e.g. environmental taxes, subsidies or financing
• CPC Class Codes: Y04S 10/50 Systems or methods supporting the power network operation or management, involving a certain degree of interaction with the load-side end user applications
• CPC Class Codes: Y04S 50/12 Billing, invoicing, buying or selling transactions or other related activities, e.g. cost or usage evaluation

Abstract

A system, method and computer program product for minimizing risks associated with meteorology dependent activity. Such activity may include operation of renewable power sources and the delivery of power output from those renewable sources for sale on a market. The system and method identify risks to market participants in the event of possible shortfall, and provide metrics and mitigation processes for addressing the risks before the contractual breaches occurs for failure to deliver power, or imbalances occurred in grid operations.

Claims

1. A method of translating meteorological forecast data to an operations data associated with providing electrical power produced from a renewable power generation facility to a power grid, comprising:

collecting meteorological factors that affect an amount of electrical power generated by the renewable power generation facility;

developing a meteorological forecast from said meteorological factors collected;

committing to deliver, by contract, at least a portion of a unit of power from said renewable power generation facility at a predetermined time coinciding with the meteorological forecast; and

developing a trading position for said unit of power based on an uncertainty in said meteorological forecast.

2. The method of claim 1, further comprising:

calculating a financial risk associated with the commitment to deliver the unit of power at the predetermined time;

contrasting a cost associated with a risk of failure to deliver the unit of power at the predetermined time with a cost to mitigate said risk of failure; and

at least one of adjusting and not adjusting said trading position based on an uncertainty in a meteorological reforecast made with an update in said meteorological factors.

3. The method of claim 2, wherein said trading position includes trading an option to offset said uncertainty in said meteorological reforecast.