Patent ID: 8595094

Claim:
A system for market-based financial settlement of transactions within an electric power grid network comprising: a settlement processor for market-based financial settlements, comprising a server and/or a processor operatively coupled with a memory, and a database constructed and configured for electrical connection and IP-based communication via a network with at least one coordinator, wherein each of the coordinator(s) is constructed and configured for electrical connection and IP-based network communication with at least one active grid element that is registered to participate within the electric power grid; wherein the settlement processor for market-based financial settlements generates a settlement message, using revenue grade metrology for a market-based financial settlement for each of the grid element(s) that includes at least one kilowatt packet (KWP) unit; wherein a settlement message is transmitted via IP-based messaging, and wherein the settlement message further includes an IP packet having at least one kilowatt packet (KWP) unit for the market-based financial settlement corresponding to the participation of the grid element(s) within the electric power grid; wherein each KWP unit comprises measured data transformed into settlement grade data for market financial settlement for load and supply corresponding to each of the active grid element(s) participation in the electric power grid for load or supply, and each KWP unit provides a quantifying market rate for monetization for any unit of kilowatts with respect to time.