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Posted 2 months ago | 7 minute read
The role of AI and robotic trading in demand response
The energy industry is constantly evolving, and technological advancements have played a crucial role in this evolution. One of the latest trends in the energy sector is the use of artificial intelligence (AI) and robotic trading to forecast energy consumption patterns, manage risks, and automate energy management systems.
Forecasting consumption patterns
One of the primary advantages of AI and robotic trading in energy demand response is the ability to forecast energy consumption patterns. The ability to forecast demand is crucial in ensuring that the right amount of energy is procured at the right time. The traditional method of energy forecasting relied on historical data and statistical models, which were not always accurate. However, with the advent of AI and robotic trading, forecasting has become more accurate and efficient.
AI algorithms use machine learning to analyse large amounts of data, including historical weather patterns, energy consumption, and pricing data, to predict future demand and prices. This helps businesses plan more efficiently, reducing the risk of over or under procurement.
AI algorithms can analyse a wide range of data, such as historical energy consumption patterns, weather forecasts, and market trends, to predict how much energy will be required in the future. This information can help businesses adjust their energy usage to minimise waste, reduce costs, and improve overall energy efficiency.
Risk management is a critical aspect of energy demand response, particularly when it comes to ensuring that businesses can continue operating during unexpected events that may impact their energy supply. For example, power outages and unexpected increases in energy demand can all lead to disruptions in energy supply, which can have a significant impact on businesses that rely heavily on energy to operate.
The use of AI and robotic trading in energy demand response can help businesses mitigate these risks by identifying potential threats and taking proactive measures to prevent them from occurring. AI algorithms can continuously monitor energy supply and demand patterns, as well as weather forecasts and market trends, to identify potential disruptions that could impact energy supply.
Once a potential threat is identified, the AI system can take action to mitigate the risk. For example, it could automatically switch to a backup generator or reduce energy consumption in non-critical areas to ensure that critical systems remain operational. These actions can be taken without any human intervention, ensuring that the response is swift and efficient.
Another benefit of using AI and robotic trading for risk management in energy demand response is that it can provide businesses with real-time monitoring and alerts. This means that businesses can be notified immediately of any potential issues and can take action before the situation escalates. This can be particularly useful for businesses that operate in industries that are heavily dependent on energy, such as data centres, hospitals, and manufacturing facilities.
In addition to mitigating risks associated with unexpected events, AI and robotic trading can also help businesses manage risks associated with energy pricing and volatility. By monitoring energy markets and forecasting future prices, AI algorithms can help businesses make more informed decisions about when to buy and sell energy. This can help businesses to reduce their exposure to price volatility and ensure that they are paying the best possible price for their energy.
In summary, the use of AI and robotic trading in energy demand response can help businesses to manage a wide range of risks associated with energy supply and demand. By providing real-time monitoring and alerts, automating responses to potential threats, and helping businesses to manage energy pricing and volatility, AI systems can improve the efficiency and effectiveness of energy management strategies, while reducing costs and minimizing risk.
The use of AI and robotic trading in this context can help businesses mitigate risk by identifying potential threats and taking proactive measures to prevent them from occurring. It also improves risk management by providing real-time market data and analysis. This allows informed decisions to be made about when to buy and sell energy, minimizing the risk of financial losses.
For example, if an AI algorithm detects a potential power outage, it can automatically switch to a backup generator to ensure that critical systems remain operational.
Automation is a key benefit of AI and robotic trading in energy demand response. By automating energy management systems, businesses can reduce the need for human intervention and streamline their energy usage. This not only saves time and resources but also improves the accuracy and efficiency of energy management systems.
Data driven solutions
Our AI forecasting solution, Ai. Trade, uses advanced trading strategies, real time forecasting, and analytics-driven decision support to create a solution that will optimise customers financial returns.
In essence, Ai. Trade predicts market trends via a series of price forecasts and creates an optimal trading solution tailored to companies sites. By using a combination of historical and real-time market data from over 70 big data sets, it self-trains and recalibrates in real-time, learning from and adjusting to new market data as it arrives. It also combines different AI algorithms including supervised predictive AI, deep learning, and neural networks.
The output is a series of forecasted solutions on where and when to buy or sell electricity. By bringing together the trading signals from the AI-generated forecasts and combining them with company site requirements, volumes required and appetite for risk, our software offers real-time automated trading, making the best available trades in real time.
Industry: Cold storage and logistics
Challenge: The site was importing power throughout the day to maintain a temperature of -23 degrees. Energy flexibility was found in the assets without impacting product quality or operations – providing an opportunity to generate revenue for the business.
Solution: By optimising their assets and using Ai. Trade, energy flexibility was traded in the highest revenue markets and additional power was imported to over-cool the site when prices were low.
Results: By forecasting market prices, shifting load, and trading, GridBeyond’s Ai. Services were able to reduce costs by £16,600/ MW/year. Active trading across markets provided revenues of £62,500/MW /year.
In a volatile and dynamic energy system, it’s important to know what’s going to happen next. Using predictive-learning algorithms, the Ai. Trade provides day-ahead forecast data for your site energy profile, helping you pre-empt exposure to peak prices. Intelligent energy management is no longer just a case of how much energy you use, it’s about when you use it. The Ai. Trade’s solvers identify opportunities to shift demand to cheaper and lower carbon times of day or markets to purchase electricity on to secure the best price for power, without compromising on operations. From smart charging of EVs to avoid peak prices, through to diverting electricity to battery storage, the Ai. Trade lets you manage your infrastructure in optimal balance.
Ai. Trade doesn’t require from your business to provide complex transactive services for grid operators and risk compromising performance. Instead, it treats flexibility within the context of comfort, cost and carbon management, and uses predictive and big data to give energy managers the confidence and transparency they need to flexibly dispatch their energy assets.
Ai. Trade is part of our family of AI-powered innovations.
Our Ai. Services (Ai. Terms, Ai Trade and Ai. Thrive) make it easier than ever to reduce energy costs, cut carbon, improve the performance of your assets and gain new revenue streams while supporting the integration of green energy onto the grid.
With live data, analytics and automated insights, our Ai. Platform becomes the nerve centre for real time optimisation of your energy strategy, helping you transform your energy into opportunity.
If you have any questions around the potential for your site, contact our team, or to learn more about the complimenting services offered by GridBeyond’s intelligent energy technology, our Ai. Services brochure.
In conclusion, the use of AI and robotic trading in energy demand response has become an essential tool for businesses in Ireland looking to improve their energy efficiency and reduce costs. By leveraging AI algorithms to forecast energy consumption patterns, manage risks, and automate energy management systems, businesses can optimize their energy usage and reduce waste. With the continued development of this technology, it is likely that we will see even more significant advancements in the future, making it an even more critical component of energy management strategies.
GridBeyond’s Ai. Services consist of three complementary products: Ai. Terms, Ai. Trade & Ai. Thrive, which together, will transform your energy into opportunity.Learn more
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