A Data-Driven Approach for Blockchain-Based Smart Grid System

Abstract

The smart grid is emerging as a future paradigm for power networks. While it has many successful applications, peer-to-peer trading in the local energy market (LEM) is still challenging due to the lack of security and trading mechanisms. In this paper, we design a data-driven, secure, and smart solution DS2to address this problem. We first propose a five-layer design of LEM based on blockchain. We then model peer-to-peer trading in LEM as a cost minimization problem and derive an efficient online solution leveraging matrix factorization and integer linear programming. DS2is implemented and evaluated on a private Ethereum blockchain. We show that DS2achieves a mean absolute percentage error (MAPE) of 12.8% compared with the offline optimal method through extensive simulations on the real-world dataset.