Blockchain‐based framework of power demand response in China

Abstract

Abstract Demand response is recognized as an effective solution for eliminating power fluctuations and satisfying capacity constraints in power systems. A growing customer base equipped with energy storage and intelligent power meter on the demand side has resulted in the strong interest of China's power companies in demand response. However, most exiting demand response programs in China are based on a centralized framework, which is easier for management, but cannot support a large number of scattered small‐scale users' participation effectively. Therefore, taking the desired features of blockchain technology, such as decentralization, trustworthiness, trackability, and immutability into consideration, the applicability of blockchain in demand response is analyzed. On this basis, a new blockchain‐based framework of China's typical demand response programs is proposed, in which consensus mechanism, encryption algorithm, and smart contract of blockchain are applied to the process of invitation, bidding, and settlement in demand response. Furthermore, the development suggestions of China's demand response based on blockchain technology are put forward from the aspects of trading products, credit management, and platform construction at the end of this work.