Blockchain-based Decentralized Transactive Energy Auction Model with Demand Response

Abstract

This work proposes the use of blockchain technology to create a Decentralized Transactive Energy platform for Peer-to-Peer Energy Trading without authorized third-party agents. The distributed double auction mechanism is used in the proposed model as it enables every peer in the system to become an auctioneer, where the blockchain component will eliminate the single point of attack and guarantee the legal actions of all peers with the secure process of transactions. The main contribution of the paper is the combined use of Demand Response with a Decentralized Network. By considering optimal prosumer scheduling in the system, both preferences and needs of the peers in the network will be maximized. Experimental testing of the proposed strategy shows quick convergence of the decentralized auction, loss minimization caused by long transmission, improved security, and efficiency of the system.