Energy Sufficiency Arbitrage

Authors

  • Michael C. Overturf Europe, US
  • Brian M. Flynn Stevens Institute of Technology

DOI:

https://doi.org/10.13052/dgaej2156-3306.2744

Keywords:

Arbitrage, Energy Sufficiency, Energy Portfolio, Kaizen, Macrogrid, Microgrid, Pricing Differential

Abstract

Arbitrage is the exploitation of a commodity price differential in
two or more markets. Energy Sufficiency is an element of an energy
portfolio that makes use of just-in-time electrical or thermal genera-
tion or conversion. Energy Sufficiency Arbitrage requires the use of a
sufficiency-inclusive private energy portfolio, characterized by a non-
zero Energy Index (ENDX™) [2].
A sufficiency-inclusive energy portfolio for consumers of large
amounts of energy, specifically with high energy density (>70W/m2,
for example), can be implemented using a private micro-grid, which
creates a local energy market: a microgrid converts one form of energy
into a more useful one at a certain cost. Arbitrage pricing opportuni-
ties are created in the pricing differential between microgrids and
macrogrids, with a resulting cost reduction, often significant, for the
portfolio owner.
We discuss in this paper how a Sufficiency Arbitrage advantages
are created and managed as part of the Sufficiency Kaizen continuous
improvement process [3].

Downloads

Download data is not yet available.

Author Biographies

Michael C. Overturf, Europe, US

Michael C. Overturf is the principal founder and developer of
Nadan Energy’s value proposition. He has a 30-year career spanning
Digital Technology, Manufacturing, Logistics, Management Consulting,
and Mergers and Acquisitions, advising companies in a wide variety
of industries on productivity issues involving labor, material, energy,
and capital management. He designed and constructed manufacturing
facilities for discrete components production such as graphite-based
silicon furnaces, consumer products, metal industrial products, and
various services. As a Director of Operations for Alexander Proudfoot
he engaged in value engineering and productivity improvement work
for nearly 100 companies in Europe, US, and Southeast Asia. He holds
several patents. He can be reached at mike@nadanenergy.com

Brian M. Flynn, Stevens Institute of Technology

Brian M. Flynn is a BSME graduate from Stevens Institute of
Technology, a licensed professional engineer in nine states (PA, NJ,
MD, NY, FL, RH, VA, DE, VT), and he has over twenty years of
practical experience in the design and commissioning of solid, liquid,
and gaseous fuelled energy systems. His overall experience spans the
entire spectrum of projects; from basic renovations, to new green-field
powerplant projects and major mechanical system upgrades. He was
awarded the ISPE Design Awards for Engineering Excellence. He holds
several patents. He can be reached at brian@nadanenergy.com

References

Newbery, D. M. (2012). Reforming Competitive Electricity Markets to meet Envi-

ronmental Targets. Economics of Energy & Environmental Policy, 1 (1), 69-82.

Overturf, M. C., & McKnight, D. (2011). Managing Energy Productivity with a

Sustainable Energy Index. Energy Engineering, 109 (1), 36-51.

Overturf, M. C., Chrosny, W., & Stine, R. (2011). Energy Sufficiency Kaizen: Achiev-

ing Zero Energy Cost and Variance with Sufficiency-Inclusive Private Energy

Portfolios. Distributed Generation and Alternative Energy Journal, 26 (4), 36-56.

Pfeifenberger, J. N. (2011). Second Performance Assessment of PJM’s Reliability Pricing

Model. The Brattle Group. Norristown, PA: PJM Interconnection LLC.

Pfeifenberger, J., Spees, K., & Schumacher, A. (2009). A Comparison of PJM’s RPM

with Alternative Energy and Capacity Market Designs. The Brattle Group, Inc. Nor-

ristown, PA: PJM Interconnection LLC

Downloads

Published

2012-10-10

How to Cite

Overturf, M. C., & Flynn, B. M. (2012). Energy Sufficiency Arbitrage. Distributed Generation &Amp; Alternative Energy Journal, 27(4), 53–73. https://doi.org/10.13052/dgaej2156-3306.2744

Issue

2012: Vol 27 Iss 4

Section

Articles