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.
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.
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.
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.
This paper proposes a contract based mechanism to ensure the optimal management of a microgrid including smart buildings and local generation. The aim is to find a trade-off between the microgrid management system (MGMS) and the building energy management systems (BEMS) while preserving the building privacy. In this approach, the MGMS guaranties the prices of energy for buildings and the BEMS provides upward and downward flexibility proposals that can be activated by the MGMS. The exchanges between the two management systems are standardized and independent of the mechanism used by the BEMS to provide flexibility. The framework is implemented for electric heating buildings and an example is provided.
Alexander Ryota Keeley, Shunsuke Managi, 2 World Bank Disaster Risk Management Hub, Tokyo, Japan
Still a lot of Indonesia's population lacks access to electricity, and a large number of those people live in remote areas or on islands. Traditionally, electrification of areas not yet connected to the main electricity grid and too remote for grid extension has mainly been achieved through installation of decentralized generation units with diesel generators. However, with decreased cost of renewable energy technologies, renewable hybrid mini-grid systems are becoming economically viable options in an ever-increasing number of places. This paper analyzes the economic viability of renewable hybrid mini-grid systems with solar Photo-Voltaic cells, batteries, and diesel generators in a typical un-electrified village in Indonesia employing local data. The analysis is conducted by utilizing HOMER simulation techniques to design the optimal renewable hybrid mini-grid systems and the economic viability assessment of the system is performed by comparing the levelized cost of energy of the system with that of the conventional diesel system under different financial scenarios. Further financial analyses, such as Internal Rate of Return and Net Present Value, are performed for the hybrid systems to investigate what kind of financial scenarios (debt/equity ratios) and public aid (international aid and government fund), would make the hybrid systems attractive to private investors. The analysis has clarified that even at the most conservative scenario with 100% equity finance, the levelized cost of energy of the renewable hybrid mini-grid system is lower than that of the diesel system. Further analysis has shown that grant finance that covers 35% of the total project cost could make the hybrid system a profitable investment project for private investors even in the most conservative scenario. The paper also demonstrates that the profitability of renewable hybrid mini-grid systems is highly affected by financial scenarios (debt/equity ratios) in comparison with that of diesel systems, concluding with policy recommendations.
Cong Nam Truong, Michael Schimpe, Uli Bürger, Holger C. Hesse · 5 authors
This article proposes a basic concept for the multi-use of stationary battery storage systems with multiple stakeholders to improve the economic value of battery storage systems. An auction market is suggested, where segments of the energy storage system and rights of use are auctioned. The blockchain technology is incorporated to develop a generic, low-cost concept that enables distinct obligations between the stakeholders caused by the technical operation of the battery storage system. Smart contracts allow flexible sharing of the battery storage system and increase the system’s utilization ratio in the presence of prediction uncertainties.
The penetration of renewable energy resources and demand response programs causes several management issues, such as network instability. Several research projects are currently investigating and surveying several methods to enhance the network reliability. This paper represents a smart model of community grid that contains a central management unit and several consumers, producers and prosumers. In the proposed model, the community manager is able to control the consumption and generation of the resources by establishing contracts with its members. The community manager utilizes a single period optimization problem for minimizing its operation costs by applying different types of demand response programs and the use of renewable resources. In the case study, an internal low voltage distribution network of a real university campus is considered as the community grid, in order to test and validate the proposed model.
Van Hoa Nguyen, Yvon Bésanger, Quoc Tuan Tran, Minh Tri Le
As more and more distributed renewable energy resources are integrated to the grid, the traditional consumers have become the prosumers who can sell back their surplus energy to the others who are in energy shortage. This peer-to-peer (P2P) energy transaction framework benefits the end users, financially and in term of energy security; and the network operators, in term of flexibility in DRES management, peak load shifting and regulation of voltage/frequency. Environmentally, P2P energy transaction also helps to reduce carbon footprint, reduces DRES payback period and incentivizes the installation of DRES. The current centralized market model is no longer suitable and it is therefore necessary to develop an adapted decentralized architecture for the advanced P2P energy transaction framework intra/inter-micro grid. In this paper, we discuss several distributed ledger approaches for such framework: Blockchain, Block Lattice and Directed Acyclic Graph (the Tangle). The technical advantages of these architectures as well as the persistent challenges are then considered.
Maria Luisa Di Silvestre, Pierluigi Gallo, Mariano Giuseppe Ippolito, Eleonora Riva Sanseverino · 5 authors
The present paper considers some technical issues related to the “energy blockchain” paradigm applied to microgrids. In particular, what appears from the study is that the superposition of energy transactions in a microgrid creates a variation of the power losses in all the branches of the microgrid. Traditional power losses allocation in distribution systems takes into account only generators while, in this paper, a real-time attribution of power losses to each transaction involving one generator and one load node is done by defining some suitable indices. Besides, the presence of P-V nodes increases the level of reactive flows and provides a more complex technical perspective. For this reason, reactive power generation for voltage support at P-V nodes poses a further problem of reactive power flow exchange, which is worth of investigation in future works in order to define a possible way of remuneration. The experimental section of the paper considers a medium voltage microgrid and two different operational scenarios.
Jian Wang, Qianggang Wang, Niancheng Zhou, Yuan Chi
The installed capacity of distributed generation (DG) based on renewable energy sources has increased continuously in power systems, and its market-oriented transaction is imperative. However, traditional transaction management based on centralized organizations has many disadvantages, such as high operation cost, low transparency, and potential risk of transaction data modification. Therefore, a decentralized electricity transaction mode for microgrids is proposed in this study based on blockchain and continuous double auction (CDA) mechanism. A buyer and seller initially complete the transaction matching in the CDA market. In view of the frequent price fluctuation in the CDA market, an adaptive aggressiveness strategy is used to adjust the quotation timely according to market changes. DG and consumer exchange digital certificate of power and expenditure on the blockchain system and the interests of consumers are then guaranteed by multi-signature when DG cannot generate power due to failure or other reasons. The digital certification of electricity assets is replaced by the sequence number with specific tags in the transaction script, and the size of digital certification can be adjusted according to transaction energy quantity. Finally, the feasibility of market mechanism through specific microgrid case and settlement process is also provided.
We present an architecture for peer-to-peer energy markets which can guarantee that operational constraints are respected and payments are fairly rendered, without relying on a centralized utility or microgrid aggregator. We demonstrate how to address trust, security, and transparency issues by using blockchains and smart contracts, two emerging technologies which can facilitate decentralized coordination between non-trusting agents. While blockchains are receiving considerable interest as a platform for distributed computation and data management, this is the first work to examine their use to facilitate distributed optimization and control. Using the Alternating Direction Method of Multipliers (ADMM), we pose a decentralized optimal power flow (OPF) model for scheduling a mix of batteries, shapable loads, and deferrable loads on an electricity distribution network. The DERs perform local optimization steps, and a smart contract on the blockchain serves as the ADMM coordinator, allowing the validity and optimality of the solution to be verified. The optimal schedule is securely stored on the blockchain, and payments can be automatically, securely, and trustlessly rendered without requiring a microgrid operator.
Jun 1, 2017·2017 IEEE International Conference on Internet of Things (iThings) and IEEE Green Computing and Communications (GreenCom) and IEEE Cyber, Physical and Social Computing (CPSCom) and IEEE Smart Data (SmartData)
Eleonora Riva Sanseverino, Maria Luisa Di Silvestre, Pierluigi Gallo, Gaetano Zizzo · 5 authors
In recent years novel models for energy distribution appeared and islanded microgrids quest for new ways to exchange energy between consumers and producers without the need of central authorities. The blockchain mechanism has emerged as a distributed solution for recording energy transactions in power systems. The blockchain has been used to permit users bartering and selling energy and to keep track of such exchanges without exposing them to tampering. In this work, we consider a novel application of the blockchain in islanded microgrids that includes also annotating energy losses caused by energy transactions, in order to have a more realistic matching between the physical status of the energy grid and the consequent costs attributed to users. To validate our novel use of the blockchain, we carried out simulated experiments for an exemplary islanded microgrid, in which 3 main generators supply 6 load nodes. This validates the compatibility of this new cost attribution model with the supporting physical infrastructure. Preliminary results demonstrate that the superposition of energy transactions in a microgrid changes the distribution of losses in all paths, eventually due to the large reactive flows created by PV systems.
Pietro Danzi, Marko Angjelichinoski, Čedomir Stefanović, Petar Popovski
Residential microgrids (MGs) may host a large number of Distributed Energy Resources (DERs). The strategy that maximizes the revenue for each individual DER is the one in which the DER operates at capacity, injecting all available power into the grid. However, when the DER penetration is high and the consumption low, this strategy may lead to power surplus that causes voltage increase over recommended limits. In order to create incentives for the DER to operate below capacity, we propose a proportional-fairness control strategy in which (i) a subset of DERs decrease their own power output, sacrificing the individual revenue, and (ii) the DERs in the subset are dynamically selected based on the record of their control history. The trustworthy implementation of the scheme is carried out through a custom-designed blockchain mechanism that maintains a distributed database trusted by all DERs. In particular, the blockchain is used to stipulate and store a smart contract that enforces proportional fairness. The simulation results verify the potential of the proposed framework.
Pietro Danzi, Marko Angjelichinoski, Čedomir Stefanović, Petar Popovski
Residential microgrids (MGs) may host a large number of Distributed Energy\nResources (DERs). The strategy that maximizes the revenue for each individual\nDER is the one in which the DER operates at capacity, injecting all available\npower into the grid. However, when the DER penetration is high and the\nconsumption low, this strategy may lead to power surplus that causes voltage\nincrease over recommended limits. In order to create incentives for the DER to\noperate below capacity, we propose a proportional-fairness control strategy in\nwhich (i) a subset of DERs decrease their own power output, sacrificing the\nindividual revenue, and (ii) the DERs in the subset are dynamically selected\nbased on the record of their control history. The trustworthy implementation of\nthe scheme is carried out through a custom-designed blockchain mechanism that\nmaintains a distributed database trusted by all DERs. In particular, the\nblockchain is used to stipulate and store a smart contract that enforces\nproportional fairness. The simulation results verify the potential of the\nproposed framework.\n
Cherrelle Eid, Paul Codani, Yannick Pérez, Javier Reneses · 5 authors
In many electric systems worldwide the penetration of Distributed Energy Resources (DER) at the distribution levels is increasing. This penetration brings in different challenges for electricity system management; however if the flexibility of those DER is well managed opportunities arise for coordination. At high voltage levels under responsibility of the system operator, trading mechanisms like contracts for ancillary services and balancing markets provide opportunities for economic efficient supply of system flexibility services. In a situation with smart metering and real-time management of distribution networks, similar arrangements could be enabled for medium- and low-voltage levels. This paper presents a review and classification of existing DER as flexibility providers and a breakdown of trading platforms for DER flexibility in electricity markets.
Nicolas Gensollen, Vincent Gauthier, Monique Becker, Michel Marot
In the context of the smart grid, we propose in this paper an algorithm that forms coalitions of agents, called prosumers, that both produce and consume. It is designed to be used by aggregators that aim at selling aggregated surplus of production of the prosumers they control. We rely on real weather data sampled across stations of a given territory in order to simulate realistic production and consumption patterns for each prosumer. This enables us to capture geographical correlations among the agents while preserving the diversity due to different behaviors. As aggregators are bound to the market operator by a contract, they seek to maximize their offer while minimizing their risk. The proposed graph-based algorithm takes the underlying correlation structure of the agents into account and outputs coalitions with both high productivity and low variability. We show that the resulting diversified coalitions are able to generate higher benefits on a constrained energy market, and are more resilient to random failures of the agents.
The smart grid is widely considered as an efficient and intelligent power system. With the aid of communication technologies, the smart grid can enhance the efficiency and reliability of the grid system through intelligent energy management. However, with the development of new energy sources, storage and transmission technologies together with the heterogeneous architecture of the grid network, several new features have been incorporated into the smart grid. These features make the energy trading more complex and pose a significant challenge on designing efficient trading schemes. Based on this motivation, in this paper, we present a comprehensive review of several typical economic incentive approaches adopted in the energy-trading control mechanisms. We focus on the technologies that address the challenges specific to the new features of the smart grid. Furthermore, we investigate the energy trading in a new cloud-based vehicle-to-vehicle energy exchange scenario. We propose an optimal contract-based electricity trading scheme, which efficiently increases the generated profit.
India today needs to have around 2,OO,OOO MW of power to meet its current energy needs, but it is able to provide only about two third of it. Additional finances are difficult to come by and the infrastructure is often not available to make it reach the remote areas. Heavy roistering in city areas has been a perpetual feature in some states. Many of the dwellers of small cities have come to depend on what is called an 'inverter' and its associated battery based storage system to cope up with the frequent power outages. Seen from another perspective these systems only lack the solar panels to become completely self contained power systems. Thus addition of solar panels to these will be only an incremental cost. By encouraging this approach several problems can be solved all the same time. First of all this additional investment will be from the users themselves. Next the power generated will be environmentally friendly and the regular power supply and the grid may need to be used sparingly. These storage based systems may become parts of Smart Grids for the future as they may be further evolved to feed power into the grid.Evaluation of the performance of these systems has been studied through simulation and the economics of the system has been investigated under various conditions for typical users. The proposed system has been compared with the early telecom systems in India that were based on land lines and could not be expanded fast enough. Later the privatized and decentralized wireless based approach provided the desirable solutions.