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Subject: RE: [emix] The Problem of certificates
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Let's consider Carbon,
as an example. If a Carbon tax is
legislated, then a generator will pay a carbon tax at the source, and ideally
we don't need to know the carbon content of the electricity for transactions up
the chain because the cost of Carbon is internalized in the electricity
price. If Cap and Trade
for Carbon is legislated, then the generator will be allocated or will have to
purchase carbon certificates at the source. Again the cost of Carbon is internalized
in the electricity price. In both cases we
only need to know the price of the bundled electricity (including the Carbon
cost) from any source at a location
and the transactions can be fast.
Carbon certificates can be traded independent of electricity in liquid markets where
the carbon certificates may have been associated with many electric and
non-electric activities across large regions. Edward G. Cazalet, Ph.D. 101 First Street, Suite 552 Los Altos, CA 94022 650-949-5274 cell: 408-621-2772 From: Toby Considine [mailto:tobyconsidine@gmail.com] On
Behalf Of Toby Considine The Problem of certificates We have electricity and a [potentially] long list of
attributes, that ideally should be sold together. We are calling the attributes
certificates, and each may have its own price. In concept, a bundle of
certificates could be sold without electricity at the same speed. For the smart grid to be smart, it must address the
fundamental problem of the new volatile grid, that is, it must be aligned in
time, and transactions must be able to clear in time. For this to avoid failing
under the weight of its internal inconsistencies., the primary market for the
certificates must clear in the same time slices as does the electricity. I say
Primary Market, to ties to the Primary sale of Electricity, hover many times it
may occur in the near instantaneous path through the market channels from
supplier to consumer. This in no way forfends gathering certificates gained in the
primary market for later resale in a secondary markets. The smart grid happily
encourages the sale of indulgences; it should assert, though, that those
indulgences for sale be gathered honestly, that is a time-clearing market. This suggests to me that EMIX is an envelope. The envelope
may require being sealed, with sealing wax or checksum as needed, at the time
of transaction. Inside the envelope there are a series documents. One document
is electricity and price, with physical values, i.e., power factor,
reliability, response time, etc. The other documents are the certificates. The
seal is what provides traceability to the bundled transaction, whether in
primary or secondary markets. Question 1: What is written on the envelope? One thought would suggest the total price for the whole
bundle. In the null / dump system, the AHAM refrigerator might read only the
envelope… What needs to be on the envelope The other thought suggest the Envelop has nothing other than
Offeror, Offeror transaction ID, and signature/checksum. This would require the
small device to be able to unpack and sum the documents in the envelope. Question 2: Does any unpacked document / certificate later packaged for
re-sale include the Offeror, Offeror transaction ID from the envelope it was
pulled out of to allow traceability? Would we demand (outside of scope) that
market blenders have a virtual pool of certs in in this form, and certs our
with the pool as the offeror? I ask this question to explore whether the EMIX
and certs are complete. "Energy
and persistence conquer all things." -- Benjamin Franklin
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