System and Method for Identifying and Upgrading a Transmission Grid

Abstract

A system and method for upgrading or otherwise improving performance and/or operation of a transmission grid are provided. The system and method involve identifying transmission grid constraint(s), e.g., transmission bottlenecks or other causes of system congestion, and implementing step(s) to alleviate such constraint(s) on terms and conditions that shift initial capital requirements away from grid owners/operators. The capital-shifting mechanisms generally include installation of and/or access to equipment for monitoring and/or measuring grid performance parameter(s) on a predetermined basis, e.g., in real-time, on a daily basis or the like. A processor is provided that is programmed to calculate a payment stream to be paid to the independent party responsible for effectuating the grid performance upgrade based on measurement of performance parameters.

1 . A method for upgrading a utility grid that is used by entities that provide generation, transmission and distribution services, said method comprising:
 a. identifying at least one upgrade project associated with the utility grid that satisfies at least one of the following criteria: (i) incrementally increases the revenues of at least one of the entities that provide generation, transmission and distribution services with respect to the utility grid, (ii) incrementally reduces the costs of at least one of the entities that provide generation, transmission and distribution services with respect to the utility grid or an electricity user, or (iii) alleviates at least in part a utility grid constraint, wherein said upgrade project includes at least one physical installation associated with said utility grid that directly reduces a transmission bottleneck or other cause of congestion on said utility grid;   b. funding implementation of said at least one upgrade project using funds of an entity that is independent of entities that provide generation, transmission and distribution services in connection with said utility grid;   c. measuring performance of the utility grid with respect to at least one predetermined performance parameter representing at least one physical attribute of the utility grid so as to determine the difference in performance of the utility grid with respect to said at least one performance parameter based on incorporation of the upgrade project;   d. calculating a revenue share based on economic benefits realized by at least one of the entities that provide generation, transmission or distribution with respect to the utility grid based on said performance measurement relative to a base performance level in the absence of said upgrade project, said revenue share calculation being performed by a processing unit that is programmed to perform said calculation based at least in part on said performance measurement relative to said base performance level; and   e. transferring monetary value equal to said calculated revenue share to said independent entity.   
     
     
         2 . The method according to  claim 1 , wherein said at least one upgrade project is selected from the group consisting of: (i) adding at least one equipment unit to the utility grid in parallel with an existing equipment unit, (ii) upgrading at least one existing transmission component associated with the utility grid, (iii) installing at least one new transmission component to the utility grid, and (iv) a combination thereof. 
     
     
         3 . The method according to  claim 1 , further comprising transferring ownership of the upgrade project from the independent entity to an entity that provides transmission services in connection with the utility grid. 
     
     
         4 . The method according to  claim 1 , wherein said identification of said at least one upgrade project includes assessment of one or more factors selected from the group consisting of: (i) project cost, (ii) geographic location, (iii) entity providing transmission services in geographic location, (iv) estimated time to complete upgrade project, (v) estimated revenue share associated with said upgrade project, (vi) feasibility of calculating estimated revenue share for said upgrade project, (vii) regulatory requirements associated with implementation of said upgrade project, and (viii) combinations thereof. 
     
     
         5 . The method according to  claim 1 , wherein said at least one upgrade project enhances the performance of the utility grade such that transmission service costs collected by an entity providing transmission services with respect to the utility grid are increased. 
     
     
         6 . The method according to  claim 5 , wherein said revenue share is calculated based on a difference in transmission service costs collected by said transmission services entity after implementation of the at least one upgrade project as compared to a calculated number corresponding to transmission service costs that would have been collected by said transmission services entity before implementation of the at least one upgrade project. 
     
     
         7 . The method according to  claim 6 , wherein said difference in transmission service costs is calculated in part based on said performance measurement with respect to said at least one predetermined performance parameter. 
     
     
         8 . The method according to  claim 6 , wherein said revenue share is a percentage of said difference in transmission service costs. 
     
     
         9 . The method according to  claim 1 , wherein said at least one upgrade project enhances the performance of the utility grid such that energy costs for an electrical load serving entity are decreased. 
     
     
         10 . The method according to  claim 9 , wherein said revenue share is calculated based on a difference in a calculated number that corresponds to energy costs that would have been incurred by said electrical load serving entity had implementation of the at least one upgrade project not taken place, as compared to a calculated number that corresponds to energy costs that would have been incurred by said electrical load serving entity after implementation of the at least one upgrade project. 
     
     
         11 . The method according to  claim 10 , wherein said difference in energy costs is calculated in part based on said performance measurement with respect to said at least one predetermined performance parameter. 
     
     
         12 . The method according to  claim 11 , wherein said revenue share is a percentage of said difference in energy costs. 
     
     
         13 . The method according to  claim 11 , wherein said at least one predetermined performance parameter includes: (i) energy production costs incurred by said electrical load serving company, (ii) transmission service incurred by said electrical load serving company, and (iii) transmission congestion charges incurred by said electrical load serving company. 
     
     
         14 . The method according to  claim 1 , wherein said at least one upgrade project enhances the performance of the utility grade such that revenues for a merchant generator, energy trading company or other entity involved in the sale of merchant energy, are increased. 
     
     
         15 . The method according to  claim 14 , wherein said revenue share is calculated based on a difference in revenues earned by said merchant generator, energy trading company or other entity involved in the sale of merchant energy after implementation of the at least one upgrade project as compared to revenues earned by said merchant generator, energy trading company or other entity involved in the sale of merchant energy before implementation of the at least one upgrade project. 
     
     
         16 . The method according to  claim 15 , wherein said difference in revenues is calculated in part based on said performance measurement with respect to said at least one predetermined performance parameter. 
     
     
         17 . The method according to  claim 15 , wherein said revenue share is a percentage of said difference in revenues.