In this paper we propose and analyze a community-driven platform for flexibility provision based on a distributed ledger. We introduce and analyze the platform for the use case of a self-organized decentralized virtual power plant consisting of a local community of individual prosumers with photovoltaic-storages located on a low voltage feeder. Like a virtual power plant, it aggregates small-scale assets and is able to provide ancillary services in the form of active power provision to the electrical power system. However, the decentralized virtual power plant provides a direct flexibility market access of the distributed assets without the need for a third party. Thus, balancing group managers or system operators can directly interact with the distributed assets in an aggregated way without the need for an aggregator. The solution approach uses a heuristic algorithm for the coordination combined with a distributed ledger and democratic consensus within the community. We propose the concept in detail, describe the prototypical implementation based on a consortium Ethereum blockchain and discuss results of the proof-of-concept. Our numerous test runs with up to 20 participants showed that the coordinated flexibility provision, energy sharing and according financial settlement works in practice, but would need an upgrade concerning the smart-meter hardware for an implementation in the field. We analyze the impact of the coordination interval on the community self-sufficiency and determine that one minute intervals are enough to reach 96% of the optimum. We evaluate the storage and communication effort and conclude with suggestions for future improvements and other possible applications of the decentralized platform like aggregated flexibility coordination between balancing group managers and system operators.
Microgrid (MG) is an efficient platform to integrate distributed energy resources in distribution networks. The operation of MG is also expected to take advantage of emerging smart grid technologies to improve operation and robustness. Among these emerging technologies, blockchain technology provide a big potential to rule the energy transaction in an innovative way. In this paper, a physical architecture of the ecosystem with MGs is firstly presented. Moreover, as the main parts of the blockchain technology, the operation of distributed ledger and smart contracts are introduced in the transaction process. Considering dynamic pricing scheme in the process of energy transaction in the ecosystem, we model the energy transaction between MGs and distribution system operator (DSO) to decide the trading amount and price of the energy. The welfare maximization mathematical model is established accordingly, and the formulated dual problem will be used to find the shadow price of selling renewable energy to grid and real-time retailer price from DSO. Finally, with the deployment of distribution ledger, the energy transaction process can be fully recorded, and transaction execution can be achieved with the help of smart contracts. In light of the mentioned perspective, beside demonstrated benefit brought to both MGs and DSO, the energy transaction and management based on the blockchain will result in higher reliability and improved auditability in the ecosystem.
Capable of aggregating multiple energy resources, the energy service company (ESCO) has been regarded as a promising alternative for improving power system flexibility and facilitate the consumption of renewable resources in the energy market. However, the issues have become significantly more serious related to the privacy and security of the data in consumption and trading. In this paper, we address the problem by proposing a privacy-preserving energy scheduling (PPES) model based on energy blockchain network. A Lagrangian relaxation method is applied to decompose the model into several individual optimal scheduling problems, and the individual scheduling problems are solved by consensus algorithm and smart contracts in energy blockchain network. The performance of the proposed model and method is evaluated with several case studies based on multiple energy nodes. Simulation results show the rationality and validity of the proposed method, and the model is conducive to the protection of environment and transparent scheduling of energy service companies (ESCOs). In addition, it can reflect the information of energy demand and supply to improve the privacy and security of data.
In this paper, we propose a secure system design for implementing the minimal-information exchange framework to efficiently provide services; the application of this concept is in the context of electricity services. The information being exchanged is dictated by the Dynamic Monitoring and Decision Systems (DyMonDS) platform, which enables optimal global solutions to be derived even in a largely distributed setting. This capability parallels the increasing number of smart Internet of Things (IoT) devices that allow for a responsive and flexible service. These advancements are aligned in the Secure Blockchain-Enabled DyMonDS design, where a secure communication protocol enables smart embedded devices to communicate with local compute nodes; these compute nodes are connected in a meshed blockchain network, providing information security, integrity, and robustness.
With the development of the energy Internet and the integration of multi-type energy situations, it is of great significance to study the competition game of a multi-agent microgrid group system for its development. As an emerging distributed database technology, blockchain technology has great application potential in the field of energy trading. Firstly, blockchain technology is coupled with the microgrid group transaction, and the information flow transaction model of a microgrid group based on blockchain technology is established. Aiming at this complex multi-objective optimization problem, an improved ant colony optimization algorithm is proposed to solve the model. Finally, the competitive trading model and solving algorithm are simulated and analyzed. The relevant results show that the near global optimum price strategy of each time based on the proposed model can effectively balance the efficiency of each subject in the market. In addition, the model ensures that there is no high-income and low-cost phenomenon in the trading process, therefore the security and quality of the market are guaranteed.
Maria Luisa Di Silvestre, Pierluigi Gallo, Mariano Giuseppe Ippolito, Rossano Musca · 7 authors
The energy blockchain is a distributed Internet protocol for energy transactions between nodes of a power system. Recent applications of the energy blockchain in microgrids only consider the energy transactions between peers without considering the technical issues that can arise, especially when the system is islanded. One contribution of the paper is, thus, to depict a comprehensive framework of the technical and economic management of microgrids in the blockchain era, considering, for the first time, the provision of ancillary services and, in particular, of the voltage regulation service. When more PV nodes are operating in the grid, large reactive power flows may appear in the branches. In order to limit such flows, a reactive optimal power flow (R-OPF) is solved, setting the voltage at the PV buses as variables within prescribed limits. Each PV generator will thus contribute to voltage regulation, receiving a remuneration included in the transaction and certified by the blockchain technology. For showing how this system can work, a test microgrid, where some energy transactions take place, has been considered. For each transaction, the R-OPF assigns the reactive power to the PV buses. The R-OPF is solved by a glow-worm swarm optimizer. Finally, the paper proposes a method for remuneration of reactive power provision; this method, integrated into the blockchain, allows evaluating the contribution to voltage regulation and increases the transparency and cost traceability in the transactions. The application section shows the implementation of a Tendermint-based energy transaction platform integrating R-OPF and the earlier cited technical assessments.
Blockchain technique, with the novelties of decentralization, smart contract, security and cooperative autonomy, is expected to play great effects on promoting the development of energy local networks (ELNs). This paper presents an automated demand response (ADR) framework for decentralized scheduling and secure peer-to-peer (P2P) trading among energy storage systems in ELNs. Different from most existing works that trade electricity over long distances and through complex meshes, this proposed work performs decentralized and automated demand response through energy sharing of P2P executors. We explore for the first time the benefits of a promising blockchain to conduct the overall ADR framework and increase the P2P trading security. To achieve decentralized scheduling without relying on a central entity, a price-incentive noncooperative game theoretic model is introduced to produce equilibrium solutions for energy storage systems. Moreover, we develop a schedulable ability evaluation system to match trading pairs involving buying and selling nodes. On this basis, a state-machine-driven smart contract mechanism is built to realize P2P trading without reliance on a trusted third party. To illustrate the implementation details of the ADR method, a distributed algorithm is designed. Case studies are provided to verify the effectiveness of the proposed method.
Morteza Dabbaghjamanesh, Boyu Wang, Shahab Mehraeen, Jie Zhang · 5 authors
This paper proposes a novel framework for privacy and security enhancement of power trading in the networked microgrids (MGs) based on the blockchain-enabled Internet of Things (IoT) approach. Utilizing the blockchain-enabled IoT technology in the power trading of the network MGs can potentially lead to some significant advantages such as fewer system risks, mitigate financial fraud, and less the operational cost. A newly stochastic framework based on the unscented transform (UT) is employed to model the uncertainties of renewable energy resources and hourly load demand. Consequently, the proposed framework is tested on the network MG containing residential MG (as a non-crucial load), commercial MG (as an intermediate level load), and hospital MG (as a crucial load), to validate the effectiveness and high performance of the proposed technique.
Pierluigi Siano, Giuseppe De Marco, Alejandro Rolán, Vincenzo Loia
The unpredictability and intermittency introduced by Renewable Energy Sources (RESs) in power systems may lead to unforeseen peaks of energy production, which might differ from energy demand. To manage these mismatches, a proper communication between prosumers (i.e., users with RESs that can either inject or absorb energy) and active users (i.e., users that agree to have their loads changed according to the system needs) is required. To achieve this goal, the centralized approach used in traditional power systems is no longer possible because both prosumers and active users would like to take part in energy transactions, and a decentralized approach based on transactive energy systems (TESs) and Peer-to-Peer (P2P) energy transactions should be adopted. In this context, the Distributed Ledger Technology (DLT), based on the blockchain concept arises as the most promising solution to enable smart contracts between prosumers and active users, which are safely guarded in blocks with cryptographic hashes. The aim of this paper is to provide a review about the deployment of decentralized TESs and to propose and discuss a transactive management infrastructure. In this context, the concept of Proof of Energy is proposed as a novel consensus protocol for P2P energy exchanges managed by DLT. An application of the proposed infrastructure considering a Virtual Power Plant (VPP) aggregator and residential prosumers endowed with a new transactive controller to manage the electrical storage system is discussed.
Michel Zadé, Jonas Myklebost, Peter Tzscheutschler, Ulrich Wagner
\begin{abstract} When an author under the pseudonym Satoshi Nakamoto published the paper `Bitcoin: A Peer-to-Peer Electronic Cash System' in 2008, the first cryptocurrency using the new blockchain technology was introduced. Over the last decade, more than 1000 different cryptocurrencies, such as Ethereum, Ripple, and Litecoin were developed and Bitcoin's currency had almost reached an equivalent value of \SI{20000}{\$\per BTC}. After recognizing the disrupting momentum that the blockchain technology generated, scientists started to develop blockchain use cases for the energy sector. However, the scientific literature so far offers only rough and incomplete estimations when questions about the current and future energy consumption of the Bitcoin network are raised. This paper introduces a new scenario model to estimate the mining power demand of the Bitcoin and Ethereum network. Six scenarios are developed on the basis of mining hardware efficiency and network parameter data. The results show that an increase of the mining hardware efficiency will only have a limited impact on the overall power demand of blockchain networks. Furthermore, the current power demand of the Ethereum network is in the range from \SIrange{0.6}{3}{\giga\watt} and therefore, is similar to the one of Bitcoin. In case of linear growth of the block difficulty and sigmoidal increase of the hardware efficiency until the year of 2025, the mining power demand for the Bitcoin blockchain will be approximately \SI{3}{\giga\watt}. Furthermore, the model and the scenarios are adaptable to other cryptocurrencies that use the proof-of-work consensus algorithm to create scenarios for their future power demand.
Blockchain is the key technology of Bitcoin and other cryptocurrencies, and it is one of the most exciting technologies changing the world as of late. Targeting at big industrial energy users, this paper first presents a new market structure (i.e., transaction rules) under existing blockchain-based electricity transaction platforms to cover popular types of markets such as contract, day-ahead, adjustment and balancing markets; and then focuses on the optimal load management problem for a particular industrial user. The proof-of-work cost from blockchain is also modeled. A key feature of this load management problem is that the user has direct control on its own load. The obtained load control model is much more accurate than existing approaches in which system operators or demand aggregators cannot control load directly and have to rely on inaccurate estimations. As a case study, the pumping load of a water supply plant is investigated to illustrate how the demand load is managed under this blockchain-based market. From the case study, it is found that 18.9% of total cost can be saved under this new market structure.
In this manuscript, we investigate the adoption of blockchain for over-the-counter (OTC) electricity wholesale trading under the EU regulatory framework. Our analysis of the core legislation reveals six potential issues: (1) data immutability-related error correction, (2) personal data protection and immutability, (3) access to different data layers, (4) obligation and capacity to report, (5) identification of counterparties and (6) conflict of interest. These six issues were used as basis for a survey with experts in this field from industry and academia. The majority of our respondents indicated four major points: (i) reduction of transaction costs is the main expected benefit, (ii) the application of blockchain can be compliant with the current regulatory framework, (iii) a sandbox is the most welcome regulatory approach to reduce legal uncertainty, and (iv) the first use case to be commercially implemented is expected to be a P2P platform, ahead of a use case focused on post-trade processes. We believe that the results presented in this manuscript might serve as guidance for market participants aiming to enable the development of blockchain.
Blockchain technology has worked over the years and is being successfully applied in finance industry. The characteristics of decentralization, openness, immutability and security provide a natural solution to the distributed autonomy management for diverse energy sources and the transaction between a wide range of participants in the energy power industry. This paper introduces the current development status and the research on the application of blockchain technology in this industry in China from the aspects of demand response, point-to-point transaction and distributed energy resource. Existed problems and suggestions are concluded for the future studies.
With the rapid growth of renewable energy resources, energy trading has been shifting from the centralized manner to distributed manner. Blockchain, as a distributed public ledger technology, has been widely adopted in the design of new energy trading schemes. However, there are many challenging issues in blockchain-based energy trading, e.g., low efficiency, high transaction cost, and security and privacy issues. To tackle these challenges, many solutions have been proposed. In this survey, the blockchain-based energy trading in the electrical power system is thoroughly investigated. Firstly, the challenges in blockchain-based energy trading are identified and summarized. Then, the existing energy trading schemes are studied and classified into three categories based on their main focuses: energy transaction, consensus mechanism, and system optimization. Blockchain-based energy trading has been a popular research topic, new blockchain architectures, models and products are continually emerging to overcome the limitations of existing solutions, forming a virtuous circle. The internal combination of different blockchain types and the combination of blockchain with other technologies improve the blockchain-based energy trading system to better satisfy the practical requirements of modern power systems. However, there are still some problems to be solved, for example, the lack of regulatory system, environmental challenges and so on. In the future, we will strive for a better optimized structure and establish a comprehensive security assessment model for blockchain-based energy trading system.
Abstract Nowadays, people trade electricity through centralized companies or organizations which is vulnerable to cyber attacks and incapable of coping with increasing demands from stakeholders. In this paper, we propose a new Peer-to-Peer Electricity Blockchain Trading (P2PEBT) system based on the current charging and discharging schemes for electric vehicles (EV) in the smart grid to enable users to participate in the trading process. In order to cope with the current situation of the high volume of EV integration, the proof-of-Benefit (PoB) consensus primitives are proposed for P2PEBT to achieve demand response by providing incentives to balance local electricity demand in the novel blockchain system. PoB is implemented by executing the smart contracts on the Ethereum platform, and the process of achieving the maximal benefits is completed by submitting the transaction in the decentralized network. Security analysis shows that the P2PEBT system is able to manage a potential protection against up to a number of attacks. We demonstrate that the proposed system using the PoB consensus mechanism can achieve lower power fluctuation without requiring a third-party intermediary.
Yuehao Zhao, Ke Peng, Bingyin Xu, Yuquan Liu · 6 authors
Blockchain is regarded as a revolutionary technology, which is widely used in different fields all over world, especially for the application in energy field. With the development of distributed generation, there’s a greater opportunity for distributed generation trading. In the near future, everyone may be able to sell their surplus electricity generated by their rooftop photovoltaic. It can be determined that blockchain can increase the trust between transactors. Blockchain can provide convenience for peer-to-peer (P2P) energy trading. In addition, blockchain can be used in other energy fields such as IOT, shared EV charging pile and etc. Because of the above advantages, many countries in the world are developing energy blockchain and have built some applied engineering programs. Some representative projects in US are introduced in this paper, and advanced technologies adopted in these existing projects are also analyzed. Finally, suggestions for developing energy blockchain technology and conclusions are given.
As a basic building block of the smart grid, advanced metering infrastructure (AMI) is substantial for gathering and sending consumption and production data of consumers. The applications facilitated by blockchain technology like local peer to peer (P2P) markets challenge the centrally organized utility industry with its disruptive potential and rely also heavily on AMIs as data source. However, such technologies pose a number of engineering challenges in early stage pilot projects: Unlike centrally managed AMIs, local P2P markets in particular require AMIs to exchange data with their peer devices, which increases the communication requirements due to the decentral nature of blockchain networks. In this paper, we compare the bandwidth requirement of real-time AMI with the requirements for a blockchain managed peer to peer market. By benchmarking both a normal operation and a high throughput scenario we find a ten times higher demand in bandwidth of the blockchain-based solution compared to real-time AMI and select the appropriate communication technology for an upcoming field test.
This paper studies the design and management of distributed energy systems incorporating residential, commercial and industrial users. A hierarchical framework is first proposed for the energy demand side management through peer-to-peer exchange of information and energy in the real-time market. Smart contracts guaranteed by blockchain technologies are implemented to create a seamless and efficient trading system. The benefits of distributed energy management are presented such as economic savings, reduction of peak load and increased market efficiency facilitated by blockchain.
Distribution system operators (DSOs) are interested in demand side participation programs as an efficient and secure resource to manage electricity supply and demand. However, it is usually difficult for DSOs to aggregate demand response of large/small consumers. Thus, in some electricity markets, an entity called an aggregator is defined to aggregate the load response of consumers. In this paper a bilevel scheduling model is proposed to determine the long-term optimal contract price between the DSO and aggregator for executing direct load control in smart distribution systems. The DSO and aggregator are considered as two different agents with individual objectives in the proposed bilevel scheduling model. On the one hand, the aggregator maximizes its profit by bidding load reduction of the large consumers to the DSO by executing a direct load control (DLC) mechanism, and on the other hand, the DSO tries to minimize its overall cost to supply all consumers. The DSO has two options to follow the variation of its consumers' demand: purchasing energy from the electricity market and executing DLC programs. The bilevel programming formulation is transferred into an equivalent single level programming problem using its Karush-Kuhn-Tucker optimality conditions. Moreover, the uncertainties of the electricity market price, demand of consumers, and generation of a wind power plant are modeled via point estimate method. Two typical case studies are implemented to demonstrate the effectiveness of the proposed scheduling model.
This letter proposes a novel demurrage mechanism for blockchain electricity marketplaces, whereby the redemptive value of energy-backed tokens declines with time. This mechanism is intended to reward organic price-responsive load shifting by incentivising the consumption of electricity when it is locally abundant. To demonstrate how such a demurrage mechanism might function in practice, this letter describes a mixed complementarity model of a notional token marketplace. These market simulations indicate that, in equilibrium and with rational actors, the demurrage mechanism creates price signals that temporally align the production and consumption of electricity.
Shen Wang, Ahmad F. Taha, Jianhui Wang, Karla Kvaternik · 5 authors
The power grid is rapidly transforming, and while recent grid innovations increased the utilization of advanced control methods, the next-generation grid demands technologies that enable the integration of distributed energy resources (DERs)---and consumers that both seamlessly buy and sell electricity. This paper develops an optimization model and blockchain-based architecture to manage the operation of crowdsourced energy systems (CES), with peer-to-peer (P2P) energy trading transactions. An operational model of CESs in distribution networks is presented considering various types of energy trading transactions and crowdsourcees. Then, a two-phase operation algorithm is presented: Phase I focuses on the day-ahead scheduling of generation and controllable DERs, whereas Phase II is developed for hour-ahead or real-time operation of distribution networks. The developed approach supports seamless P2P energy trading between individual prosumers and/or the utility. The presented operational model can also be used to operate islanded microgrids. The CES framework and the operation algorithm are then prototyped through an efficient blockchain implementation, namely the IBM Hyperledger Fabric. This implementation allows the system operator to manage the network users to seamlessly trade energy. Case studies and prototype illustration are provided.