Blockchain Based Decentralized Framework for Energy Demand Response Marketplace

Abstract

In the context of smart grids, Demand Response (DR) is used to manage energy imbalance by smoothing consump¬tion peaks through voluntary rationing of energy by participants. However, it largely remains centralized and opaque with little to no traceability. To resolve this, we propose a blockchain-based framework in which a consortium of DR allotters and certify¬ing authorities maintain the blockchain. This brings in more transparency, traceability, and complete decentralization along with trustlessness, non-repudiation, and immutability. Further, the framework uses distinct components/concepts like Secure Elements, Escrow Accounts, Applied Smart Contracts in unison to fix the impediments of previous blockchain-based propositions. Next, we propose a fair and efficient DR allotment mechanism for a distributed DR marketplace whose execution time is less than 1 minute for more than 20,000 participants. Further, through simulations, we show the impact of different parameters on it and demonstrate its ability to delicately balance various paradigms of DR metrics. Finally, we conclude with our findings on system reliability and its inordinate effects on DR allotment metrics.