Econometric models for calculating the price of electricity and saving costs
The University Miguel Hernández of Elche (UMH) has developed a mathematical model that has already been used by a company called Artificial Intelligence Talentum. It is used to make predictions on the internet of things (PRIoTs), helping save energy costs.
This model enables smart devices to find the right moment to reduce electricity consumption, achieving great efficiency.
The lockdown caused by COVID has led to a 20% reduction in electricity consumption in many countries and has favoured an increase in the production of renewable energy. This situation has made it more complicated to predict the cost of electricity at any given time. Nevertheless, this issue can be overcome thanks to advanced computer systems and mathematical models capable of resolving problems with multiple variables.
The technology developed by the UMH is able to make predictions in real time, and data are updated for the next 24 hours. Thanks to the algorithm, savings of about 30% can be achieved. This algorithm has already been successfully applied in the primary sector and is now being applied in factories and assembly lines where such savings are very significant, since the algorithm calculates the best time to turn on the machinery; at times when the cost of energy is lowest. This not only entails savings for the company but also a great reduction in the emission of pollutants. Thus, the widespread use of this system could have a very positive impact on the environment.
At IoT DIH our work involves projects that help companies become more efficient and sustainable, both in terms of energy use and economy.