Featured Post

This is the Kodak Moment for the Auto Industry

Plug-In Drivers Not Missin' the Piston Electric vehicles are here to stay. Their market acceptance is currently small but growing...

Sunday, October 6, 2024

The Internet of Energy

The Internet of Energy by Dall-e

Welcome to CarsWithCords.net, where we explore the intersection of cutting-edge technology and the future of energy and transportation. In today's blog post, we dive into the exciting realm of the Internet of Energy (IoE) and the transformative role played by Energy Artificial Intelligence (AI). Buckle up as we navigate the techno-fusion interplay of these revolutionary technology's promises, potential, and challenges.


It has happened before

Before the internet era, media content consumption was a push-model. Centralized sources such as TV broadcasters, print media publications, and movie producers were the providers and they enjoyed an oligopoly environment. The internet, however, disrupted this paradigm; giving rise to the producer/consumer or "prosumer." This shift empowered individuals to create, share, and consume content independently. These cybernauts posted on forums and social media, created blogs, and posted video content on sites like Vimeo and YouTube, rendering traditional gatekeepers less relevant. This drastically changed the type of content available and the way that people consumed content. This is still playing out.

Something similar has just started to emerge for energy. Today, for the most part, our energy system is a centrally-sourced push model ripe for disruption.

Driving the Energy Revolution, The Need for Change

Much like the evolution of content consumption, today's energy system operates primarily on a centrally sourced push model. However, a transformative wave is on the horizon—a wave that parallels the shift witnessed in the world of content creation and consumption. The transition that I call "The Internet of Energy."

A Paradigm Shift in Energy Dynamics

Just as the Internet revolutionized content distribution, the Internet of Energy is poised to revolutionize how we generate, store, and consume energy. The current energy system is akin to the pre-internet push model, where centralized sources dictate the flow of energy. But the winds of change are blowing, and they carry the promise of a prosumer-driven energy landscape.

Homes as Energy Producers: A New Era

Enter solar panels and residential battery systems like the Tesla Powerwall. Residential storage is a beacon of change in the energy domain. Homes are no longer mere consumers; they are becoming active producers of energy. The central sources are fighting to keep the status quo. The changes to California's solar market with NEM 3.0 are an example of them making strides to hold back the tide. California's net metering policy has cut the value of solar energy credits by about 75% for most residents in California. The energy oligopoly is worried about becoming less relevant. 

Energy AI: The Catalyst for Change

Just as the internet democratized content creation, energy AI is set to democratize energy. Energy AI will empower homes to process energy-related tasks locally, reducing dependence on centralized systems. This brings decision-making closer to the end-user, transforming homes into intelligent hubs capable of optimizing energy usage. Solar energy from the rooftop, solar from community hubs, energy storage, virtual power plants, grid sourced... the AI agent will look at all of these and understand the demand on the home and the grid and determine the best source for cost and reliability.

From Centralized Push to Decentralized Prosumer Energy

The push model of centrally sourced energy could give way to a decentralized prosumer energy model. Homes equipped with solar panels and battery systems operate as independent energy producers and consumers. Federated Energy AI (FEAI) ensures that this transition is not just a shift in generation but a holistic optimization of energy consumption patterns. 

FEAI would allow for a real-time peer-to-peer energy change. Allowing people on the same grid to inject and extract energy. These technologies (solar, batteries, FEAI) empower homes to become not just energy consumers but active participants in the energy ecosystem.

Rather than fighting this disruption, utilities could take on a new role. They could become the market-makers for local energy exchange; earning a percentage of every transaction. Rather than fighting the change, embrace it, accelerate it.

Why NEM 3.0 Is The Wrong Direction  

Today in California, there's a lot of rooftop solar. This means that at mid-day, there's a glut of energy being fed into the grid. This is referred to as the duck curve. The response from the utilities has been to fight to reduce the solar energy placed on the grid by removing any advantage to homeowners to export solar (unless they call for it via a VPP). 

The better response would be to slash mid-day prices. This would make energy more affordable for everyone and would cause people to find ways to utilize energy when the cost is lower. While the energy prices are low, people could: pre-cool homes, charge up residential batteries, charge EVs, and run energy-demanding compute activities (AI training, crypto...). New energy uses will be invented if the midday prices drop.

Of course, the utilities don't want to slash prices (even if there's an energy surplus) because that's the primary source of their income and they are for-profit businesses with shareholders that expect to see a profit. The current incentive system needs to be corrected.

Challenges & The Road Ahead

While challenges exist, including security concerns and market hurdles, the journey toward a prosumer-driven Internet of Energy landscape is the natural evolution. 

In conclusion, just as the Internet turned content consumers into creators, the Internet of Energy can turn homes into active contributors to the energy landscape. The future holds the promise of decentralized, prosumer-driven energy systems—stay tuned for a dynamic energy revolution with CarsWithCords.net!