Load balancing in decentralized smart grid trade system using blockchain

Abstract

This paper presents a distributed Load Balancing Trade Framework (LBTF) with focus on demand response and Advanced Metering Infrastructure (AMI) security in smart grid. This comprehensive energy market model LBTF framework can achieve good balance in demand response in two ways. First way is utility-grid contract, which introduced a simple reward policy using distributed proof-of-work (PoW) consensus algorithm in Blockchain to motivate consumer to use less energy in peak hours. Through this policy consensus algorithm reward electric units to the consumers in peak hours. And in second way scheme introduce Micro-grid contract, which is a peer to peer (P2P) trade in global market. Those consumer (prosumer) who can generate energy using renewable resources can sell their surplus energy to other consumer through this contract. Furthermore, hash functions, public key encryption and digital signatures have been used to provide privacy preserving to the consumers and integrity to the stored data.