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Operational Signal

FP-AMM Operational Coordination

These experiments test how FP-AMM coordinates electricity consumption, generation and storage through continuously updated operational prices.

Requests are processed sequentially against a rolling future state. Every accepted request immediately changes booked capacity and therefore changes the prices and opportunities presented to subsequent requests.

What this evidence strand tests

The operational evidence asks whether decentralised requests can be coordinated continuously through time and across the physical network without requiring every participating device to respond simultaneously to a centrally published schedule.

Sequential clearing

Every accepted request updates the future state before the next request is evaluated.

Forward coordination

Flexible requests can be placed across a rolling future window rather than only in the current settlement interval.

Locational supply

The operational price is determined by the level or interface that physically governs the marginal supply available to a location.

Holarchical coordination

Each grid level forms its own operational price, and the mechanism resolves outward through the hierarchy only as far as required.

Experiment O1
Available

One-node sequential clearing

Why does an operational AMM price exist, and what happens when multiple flexible requests arrive one after another?

Experimental question

Does accepting one flexible request change the future operational state and therefore alter the price curve seen by the next request?

Requests
3
Processed sequentially
Energy scheduled
24.5 kWh
100% of requested energy
Peak utilisation
83.33%
No capacity violation
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What O1 demonstrates

Request R1 initially sees 21:00 as one of the cheapest available periods and books capacity there. That commitment changes the booked state immediately, raising the operational price at 21:00 before R2 is evaluated.

R2 therefore sees a different price curve from R1 and first selects an alternative interval. This is the central sequential-clearing property: participants do not all observe the same static low-price interval and respond simultaneously.

Each accepted request changes the state against which the next request is evaluated.

Experiment O2
Available

Forward flexibility

Why does flexibility move electricity through time?

Experimental question

How does changing the time window available to an otherwise equivalent electricity request alter the schedule selected by the continuously clearing FP-AMM?

Energy requirement
14 kWh each
Same energy and 7 kW maximum power
Inflexible schedule
19:00–20:30
Approximately £91–£118/MWh
Flexible schedule
01:00–02:30
Approximately £16–£18/MWh
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What O2 demonstrates

Both requests require the same 14 kWh of energy and have the same 7 kW maximum power, but they expose very different temporal flexibility to the mechanism.

The inflexible request can only be served between 18:00 and 21:00. It therefore schedules four half-hour periods between 19:00 and 20:30, at operational prices ranging from approximately £91/MWh to £118/MWh.

The flexible request has until 07:00 to receive exactly the same amount of energy. FP-AMM evaluates that larger feasible window against the rolling future state and instead schedules the request between 01:00 and 02:30, where operational prices are approximately £16–£18/MWh.

The result demonstrates that forward coordination does not require a separate forward market or a centrally issued charging schedule. The request simply declares when it can consume, and the continuously clearing mechanism uses that flexibility to place consumption into more favourable future periods.

In FP-AMM, real-time and forward coordination are therefore part of the same mechanism: flexibility changes the feasible set, and the rolling operational state determines where within that set the request is scheduled.

Experiment O3
Available

Locational marginal supply

Why can operational prices differ between locations?

Experimental question

How does the price seen by a device change depending on whether its marginal energy can be supplied locally, imported from an unconstrained upstream system, or is limited by a binding import interface?

Local supply
£10.05/MWh
NODE-A supplied locally
Unconstrained import
£20.08/MWh
SYSTEM supplies the marginal unit
Binding import
£61.44/MWh
Import interface becomes governing constraint
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What O3 demonstrates

O3 demonstrates that an operational electricity price is determined by the marginal energy physically available to a location, rather than by adding network scarcity charges to a single system-wide energy price.

In the first case, NODE-A has sufficient local energy available. The request is therefore supplied locally and faces a local operational price of approximately £10.05/MWh.

In the second case, local energy is insufficient but the connection to the wider system is unconstrained. The marginal energy can therefore be imported, and the request faces the supplying SYSTEM price of approximately £20.08/MWh.

In the third case, local energy is again insufficient, but the import interface is now the limiting physical resource. Although cheaper energy exists elsewhere in the system, the request cannot freely access it. The binding interface therefore governs the downstream operational price at approximately £61.44/MWh.

O3 therefore shows that locational prices can be either above or below wider-system prices. The relevant price emerges from where the marginal unit of energy can physically be supplied and whether the network permits that energy to reach the requesting location.

Experiment O4
Available

Holarchical coordination

How does the mechanism resolve price through a nested electricity system?

Experimental question

Can each grid level form its own operational price while the device price is determined only by the level or interface that physically governs its marginal supply?

Local supply
£8.21/MWh
LV1 supplies the marginal unit
Feeder supply
£20.50/MWh
FEEDER-1 becomes governing level
Regional supply
£24.38/MWh
REGION-A supplies the marginal unit
Binding interface
£78.12/MWh
F2-LV4 blocks access to cheaper upstream energy
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What O4 demonstrates

O4 demonstrates how FP-AMM resolves operational price through a nested electricity-system hierarchy without adding together prices from every network level.

Each level calculates its own operational price independently from its local physical state. The mechanism then moves outward through the hierarchy only as far as necessary to find the level capable of supplying the marginal unit of energy.

In the first case, LV1 has sufficient local energy available, so the request is supplied locally at approximately £8.21/MWh.

In the second case, LV1 cannot supply the marginal unit, but FEEDER-1 can. The feeder therefore governs the request price at approximately £20.50/MWh.

In the third case, neither LV1 nor FEEDER-1 can supply the required marginal energy, so the mechanism resolves upward again to REGION-A, which becomes the governing level at approximately £24.38/MWh.

The fourth case demonstrates the complementary constraint rule. LV4 requires upstream energy, but its import interface is binding. Although cheaper energy exists at FEEDER-2, REGION-A and SYSTEM level, that energy cannot freely reach the device. The binding F2-LV4 interface therefore governs the operational price at approximately £78.12/MWh.

O4 therefore shows that the end-device price is neither inherited mechanically from the system nor formed by summing network charges. It emerges from the level or interface that physically governs the marginal supply available to that device.

Experiment O5
Available

Many sequential requests

Does sequential holarchical coordination remain feasible and computationally practical at scale?

Experimental question

What happens when 1,000 synthetic flexible requests are processed sequentially under different deterministic orderings, and how much do feasibility, total service and individual allocation outcomes depend on request order?

Requests
1,000
Evaluated under four deterministic orderings
Constraint violations
0
Across arrival, random, priority and fairness-weighted order
Processing time
~0.05 ms
Average clearing time per request
Service fraction
20.89%
1,024.5 of 4,903.5 kWh scheduled
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Order-sensitivity results

Total served energy was identical under all four orderings: 1,024.5 kWh, equivalent to 20.893% of the 4,903.5 kWh requested. No ordering produced a physical constraint violation.

OrderingRequests with different served energyRequests with different schedules
Random371400
Priority343370
Fairness-weighted342372

Differences are measured against the original arrival ordering. A changed schedule does not necessarily imply a change in the total energy served to that request.

What O5 demonstrates

O5 demonstrates that the sequential holarchical mechanism remains physically feasible and computationally lightweight when processing 1,000 requests. Every ordering respected all network constraints, and average clearing time remained approximately 0.05 milliseconds per request.

Aggregate served energy was invariant across arrival, random, priority and fairness-weighted orderings. Each ordering scheduled the same 1,024.5 kWh, showing that the physical capacity available to the mechanism was used consistently.

Individual outcomes were not invariant. Depending on the ordering, between 342 and 371 requests received a different quantity of energy, while between 370 and 400 requests received a different schedule relative to arrival order.

O5 therefore confirms both the scalability of continuously sequential clearing and the importance of explicitly governing request order. Order dependence is not hidden: it becomes a measurable allocation-design question that can be addressed through priority, fairness and other transparent sequencing rules.

The interactive replay presents a deterministic 40-request sample from the full experiment. The aggregate benchmark covers all 1,000 requests under each of the four orderings.

Whole-system feedback

From operational scarcity to investment value

The operational signal determines what should consume, generate or inject now and forward. Persistent operational scarcity then reveals which resources repeatedly make valuable contributions to the physical system. The investment evidence uses Shapley theory to translate those long-run contributions into fixed-cost remuneration.

Physical scarcityOperational priceBehaviourObserved system contributionInvestment remuneration