ABSTRACT
Arbitrage is the exploitation of a commodity price differential in two or more markets. Energy Sufficiency is an element of an energy portfolio that makes use of just-in-time electrical or thermal generation or conversion. Energy Sufficiency Arbitrage requires the use of a sufficiency-inclusive private energy portfolio, characterized by a non-zero Energy Index (ENDX™) [2].
A sufficiency-inclusive energy portfolio for consumers of large amounts of energy, specifically with high energy density (>70W/m2, for example), can be implemented using a private micro-grid, which creates a local energy market: a microgrid converts one form of energy into a more useful one at a certain cost. Arbitrage pricing opportunities are created in the pricing differential between microgrids and macrogrids, with a resulting cost reduction, often significant, for the portfolio owner.
We discuss in this paper how a Sufficiency Arbitrage advantages are created and managed as part of the Sufficiency Kaizen continuous improvement process [3].