A Market-Based Approach to Optimal Power Allocation in Electric Warships Navy SBIR FY2009.3 Sol No.: Navy SBIR FY2009.3 Topic No.: N093-189 Topic Title: A Market-Based Approach to Optimal Power Allocation in Electric Warships Proposal No.: N093-189-0347 Firm: PC Krause and Associates, Inc. 3000 Kent Avenue, Suite C1-100 West Lafayette, Indiana 47906-1075 Contact: Aaron Cramer Phone: (765) 464-8997 Web Site: http://www.pcka.com Abstract: The proposed work will investigate the feasibility of a market-based power allocation method for shipboard power systems. These systems will encompass more loads demanding more power in order to meet the U.S. Navy's current and future missions. As power is a scarce resource with alternative uses, the allocation of power within a shipboard power system is posed as an economic problem. As such, PC Krause and Associates proposes to address power allocation with an artificial free market. The equilibrium points reached by free markets can be shown to be efficient in the sense that no market actor can have more without another having less. Thus, if the market actors (in this case, generation, distribution, conversion, storage, and usage devices that comprise the shipboard power system) each act according to microeconomic principles, an efficient solution emerges. The proposed work will frame the economic goals of the actors such that the efficient solution arrived at by the market corresponds to a solution that maximizes the utility of the commanding officer of the vessel. In this way, defining objectives is the only necessary human input, and the artificial market automatically controls individual devices, thereby finding the most efficient method of attaining the objectives. Benefits: The direct benefit of the Phase I base effort will be the determination of feasibility of the market-based power allocation. This includes simulation models of a test system, a method of controlling the artificial market, a mathematical description of the market formulation, and verification of its acceptable performance in simulation. The further benefit of the option effort is preparation for Phase II testing. This sets the stage for a successful hardware demonstration. It is possible to apply this technology to other defense vehicles, including aircraft and ground vehicles. It can also be applied to reduce power consumption and enable the increased use of renewable energy sources in military installations. Finally, it can be used as a springboard into a number of building and home energy areas such as smart grid, off-the-grid operation, and smart neighborhoods. Return