System, method, and apparatus for settlement for participation in an electric power grid

A system for market-based financial settlement of transactions within a power network, comprising:

• a settlement processor in network communication with at least one grid element in the power network via at least one coordinator;
• wherein the at least one coordinator is operable to register the at least one grid element for participation in the power network;
• wherein the at least one grid element is operable to participate in the power network by supplying power to the power network, providing curtailment as supply, and/or consuming power from the power network;
• wherein the at least one grid element is operable to transmit a settlement message based on Internet Protocol (IP)-based messaging to the settlement processor via the at least one coordinator in real-time or within approximately 15 minutes after the participation of the at least one grid element in the power network;
• wherein the settlement message comprises an IP packet including at least one kilowatt packet (KWP) unit based on revenue grade metrology data associated with the participation of the at least one grid element in the power network, wherein the at least one KWP unit includes the revenue grade metrology data transformed into settlement data and provides a quantifying market rate for monetization for any unit of kilowatts with respect to time;
• wherein the settlement processor is operable to provide a market-based financial settlement for the at least one grid element based on the at least one KWP unit.

A method for market-based financial settlement of transactions within a power network, comprising:

• providing a settlement processor in network communication with at least one grid element in the power network;
• the at least one grid element participating in the power network by supplying power to the power network, curtailing power consumption as supply, and/or consuming power from the power network;
• the at least one grid element transmitting a settlement message based on Internet Protocol (IP)-based messaging to the settlement processor in real-time or within approximately 15 minutes after the participation of the at least one grid element in the power network, wherein the settlement message comprises an IP packet including at least one kilowatt packet (KWP) unit based on revenue grade metrology data associated with the participation of the at least one grid element in the power network, wherein the at least one KWP unit includes the revenue grade metrology data transformed into settlement data and provides a quantifying market rate for monetization for any unit of kilowatts with respect to time;
• and
• the settlement processor providing a market-based financial settlement for the at least one grid element based on the at least one KWP unit.