System and method for creating and operating an enhanced distributed energy network or virtual power plant

A method for managing an energy distribution network of local power production units over a distributed computing network comprising the steps of:

• (a) receiving and storing data relating to the operating performance of a plurality of local power production units;
• (b) receiving and storing data relating to a local power consumption for the plurality of local power production units;
• (c) determining a available aggregate quantity of excess power generation capacity for the plurality of local power production units based upon the operating performance data and the power consumption data;
• (d) calculating a cost of generating excess power for each of the plurality of local power production units;
• (e) communicating with at least one power purchasing entity to determine a price that the at least one power purchasing entity is offering to pay for a quantity of power;
• (f) comparing the cost of generating excess power for each local power production unit with the purchase price offered by at least one power purchasing entity to determine a quantity of excess power which can be economically provided by each local power production unit at the purchase price;
• and
• (g) communicating with the at least one power purchasing entity the quantity of power to be provided by the local power production units at the purchase price.

A system for managing an energy distribution network of local power production units over a distributed computer network comprising:

• (a) means for receiving and storing data relating to the operating performance of a plurality of local power production units;
• (b) means for receiving and storing data relating to a local power consumption for the plurality of local power production units;
• (c) means for determining an available aggregate quantity of excess power generation capacity for the plurality of local power production units based upon the operating performance data and the power consumption data;
• (d) means for communicating an offer to sell at least part of the available aggregate quantity of excess power generation capacity of the plurality of local power production units to at least one power purchasing entity;
• (e) means for receiving from at least one power purchasing entity an order to purchase a quantity of excess power generated by the local power production units;
• (f) means for communicating with the plurality of local power production units to provide each unit with instructions regarding a quantity of power to be produced;
• and
• (g) means for receiving and storing data relating to a quantity of power transmitted to each power purchasing entity.