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

A system for market-based financial settlement in an electric power grid, comprising:

• at least one active grid element and a settlement processor;
• wherein the at least one active grid element is constructed and configured in network communication with the settlement processor in real time or near real time;
• wherein the at least one active grid element participates in the electric power grid to provide operating reserves and/or grid stability for the electric power grid;
• wherein the participation comprises consuming power from the electric power grid and curtailing power from the electric power grid;
• wherein the at least one active grid element is operable to generate at least one kilowatt packet (KWP) unit based upon measured data for the participation in the electric power grid;
• wherein the at least one active grid element is operable to transmit at least one IP-based settlement message to the settlement processor;
• and
• wherein the settlement processor is operable to provide a market-based financial settlement for the participation of the at least one active grid element based on the at least one KWP unit in real time or near real time.