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Applicability of Market-based Competition models for Energy Efficient Factory Automation Systems

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Conference: 2012 IEEE International Conference on Industrial Informatics

Title of the paper: Applicability of Market-based Competition models for Energy Efficient Factory Automation Systems
Authors: Corina Postelnicu, Jose Luis Martinez Lastra

Published in: Technology, Business
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Applicability of Market-based Competition models for Energy Efficient Factory Automation Systems

  1. 1. Applicability of Market-based Competition models for Energy Efficient Factory Automation SystemsDate: July, 2012 Conference: 2012 IEEE InternationalLinked to: RTD research at FAST Conference on Industrial Informatics Title of the paper: Applicability of Market-based Competition models for Energy Efficient Factory Automation Systems Authors: Corina Postelnicu, Jose Luis Martinez LastraContact informationTampere University of Technology,FAST Laboratory, If you would like to receive a reprint ofP.O. Box 600, the original paper, please contact usFIN-33101 Tampere,FinlandEmail: fast@tut.fiwww.tut.fi/fast
  2. 2. Applicability of Market-based Competition models for Energy Efficient Factory Automation Systems Corina Postelnicu Jose L. Martinez Lastra Tampere University of Technology, Finland
  3. 3. Outline1. Background2. Market-based metaphors3. Market based competition models4. Energy efficient factory automation systems a ‘who needs to buy what from who’ perspective5. Issues raised
  4. 4. BackgroundDecision making including energy consumptionProduction output below the maximum throughput  total losses =?  energy savings =?How to decide which production strategy suits best the needs of the factory?
  5. 5. BackgroundDecision making including energy consumptionProduction output below the maximum throughput  total losses =?  energy savings =?How to decide which production strategy suits best the needs of the factory? Performance analysis Modeling paradigms SimulationHow price/quantity based competition models traditionally analyzed in the field of economics could be applied in practice for studying energy efficient factory automation systems?
  6. 6. 2. Market-based metaphors: who needsto buy what from whoWho are the providers / requestors of services? What are the services provided and requested?What is profit in the defined context? Who benefits from making profit?What is the currency used for trade? How is currency used up by the providers/requestors?Can the entities work for the currency, so that the amount of ‘currency savings’ increases on-the-fly? (~ a “salary”?)How much capital should have requestors/providers initially? (What is the “startup fund”?)How is price defined in the discussed context? Which entities are setting prices? What are the factors that influence prices?How is cost defined in the discussed context? Which entities are supporting costs? What are the factors that influence costs?
  7. 7. 3. Market based competition models Cournot BertrandFirms compete Quantity produced PriceinPrice Price = Price (Quantity) Set by firm Set such that supply=demand Set simultaneously (before observing the price of its rival)Quantity Set by firm (producers decide how Set by consumer (consumers decide how much much they wish to produce such that they wish to buy at the price set). Firms holding all other firms’ quantities produce whatever quantities are needed of the constant, they are maximizing product, at the price that was set beforehand. profits) Set simultaneously (before observing the quantity set by rivals)Better model Capacity and Output difficult to Capacity and Output easily changedin case adjust
  8. 8. 4. Energy efficient factory automationsystem
  9. 9. Workstation Pallet Lighting provider Energy provider Energy AdvisorServices Processing Transportation to in-place Context-Adjusted Energy Advice (whooffered location Lighting should do what Energy generated during when using what ransport? amount of energy)Services In-place positioning Equipment skills Advice Advice RT InformationRequested Energy Energy Energy Context Adjusted Context-Adjusted Lighting LightingCurrency Energy Energy Energy EnergyPrice Set by provider. Paid Set by provider. Paid to Set by provider. Paid Set by provider. Not needed to the workstation. the pallet. to the lighting Paid to the Price-as-a-Reward Price as a Reward provider energy provider (lower if some precondition is met by requestor).Price-as-a- Lower price imposed Lower price imposed e.g. - Lower price for Not needed atReward e.g. if a pallet seeks for machines that are preferred energy the momentPreconditi the machine during closer physically to the sources (e.g.on ‘valley’ times with pallet (so that solar as opposed energy consuming transportation is nto so to alternative) processes energy consuming) and particular providersCost Processing cost of a Transport cost to in-place Energy consumption Energy Not needed at pallet (Energy consumption) of the lighting service consumption the moment (Energy consumption) associated to the transportation of energy to the requestor
  10. 10. 5. Issues raised • Quantitative evaluation • what happens when players of the same ‘species’ (e.g. pallets) act both as providers and requestors from each other • Setting the price: incorporation of both energy and priorities? • Setting the price by consumers instead of providers? • Could pallets offer more than transportation services to in- place locations (e.g. could they become small energy harvesters within the line?) • Which paradigm would work better from the viewpoint of overall energy optimization? • Would a ‘sallary’ based mechanism work in such a setting? • What would then be the ‘startup fund’ of the players? • Apart from energy, what other currencies would be valued by all presented actors?
  11. 11. Thank you!corina.postelnicu@tut.fi

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