Design and Implementation of Blockchain-Based Smart Contracts for Enhancing Ancillary Services Management in Electricity Markets

Abstract

This paper presents a possible solution to the challenges of managing ancillary services on power systems, focusing on the development and execution of robust smart contracts on the Ethereum blockchain. These contracts automate essential procedures like bid submission, Market Clearing Price (MCP) calculation, and settlement, reducing manual involvement and improving operational efficiency. They ensure transparency and accountability through security mechanisms like role-based access restriction and event monitoring. The contracts were created using Solidity programming language and implemented on the Ethereum Sepolia test network. Unit tests using Foundry confirmed the functionality of each contract component, indicating their accuracy and effectiveness. The study highlights the novel features of the smart contract architecture and its potential impact on ancillary service administration.