Laboratory Implementation of a DLT-Supported Framework for Decentralized Provision of Ancillary Services

Abstract

The increasing integration of Distributed Energy Resources (DER) into modern power systems requires more flexible and decentralized approaches to improve operation and ensure system resiliency. In this scenario, the approach to provide ancillary services has a significant impact. Traditional centralized control schemes for ancillary services provision are increasingly challenged by issues of limited scalability, lack of transparency, and slower responsiveness. To address these challenges, this paper proposes a conceptual approach for the decentralized provision of ancillary services supported by Distributed Ledger Technology (DLT) and smart contracts. The proposed framework enables secure, transparent, and automated coordination among distributed assets without reliance on centralized intermediaries. This enables small-scale assets to access future ancillary service markets, supporting automated functions such as capability verification, streamlined access control, and instant verification and payment processes. The framework is fully implemented in a laboratory environment and validated using a Redox flow Battery Energy Storage System (BESS) and a DC charging station for Electric Vehicles (EVs). The experimental results highlight the feasibility and effectiveness of the DLT-based approach for Frequency Containment Reserve (FCR), laying the groundwork for deployments and extensions to additional ancillary services.