Transactive Energy Markets (TEM) have the potential to reduce wasted energy, increase the utilisation of renewable energy resources and enable independence in the energy sector. Blockchain has been utilised in TEMs in the literature aiming to acquire transparency, security and trustless operations. Though public blockhain enables leveraged transparency and fairness, the majority of proposals suggest adoption of private or consortium blockchains mainly due to performance concerns. In this paper, we created a TEM environment where consumers, prosumers and suppliers bid for price agreement upon a game theory model and then deployed it on localised Ethereum blockchain infrastructure. To compare the performance, we created a centralized TEM environment keeping all the settings the same. The obtained results show that public blockchains may be adaptable to TEMs to enhance system transparency and fairness as well as automated and trustless transactions. Conducted test results show that our proposal exhibit a similar scalability trend as the referenced centralized system.
Recently, new energy power generation has been developed on a large scale, and the construction process of China’s electricity spot market has been accelerated. Therefore, new energy has begun gradually participating in the spot market competition. However, the uncertainty and volatility of new energy output lead to its weak market competitiveness. This paper, relying on blockchain technology, researches the operation strategy of new energy power generators and flexible loads such as thermal storage electric heating that sign smart contracts to participate in the spot market and the resulting benefits jointly. The operation strategy proposed in this paper focuses on the uncertainty of the real-time output of new energy and the balance cost it brings. It offers to rely on the positive and negative standby of thermal storage electric heating to compensate for the volatility and uncertainty of new energy power generation. It verifies the effectiveness of the proposed model and the rationality of signing smart contracts through examples.
The hydrogen market trading mechanism has problems such as high transaction costs and a small market scale, making it difficult to meet the demand for large-scale renewable energy hydrogen production. Blockchain smart contracts have the potential to solve these problems with their decentralized, distributed ledger, and transparent features. Firstly, this paper analyzes the interest relationship between trading subjects and introduces game theory to establish a game model and mechanism for hydrogen energy trading strategies. An improved ant colony algorithm is used to obtain the Nash equilibrium solution, providing the most optimal pricing strategy for trading parties. Secondly, by dynamically changing the stability coefficient of nodes and selecting new main node mechanisms, the probability of selecting malicious nodes is reduced, thus improving transaction consensus speed. Finally, through case analysis verification it was found that this proposed hydrogen energy trading mechanism can effectively reduce transaction costs and improve system operating efficiency. This research has certain significance in promoting the application of hydrogen energy in distributed energy.
Mikhak Samadi, Sushmita Ruj, Henry Schriemer, Melike Erol‐Kantarci
Demand response (DR) has been studied widely in the smart grid literature, however, there is still a significant gap in approaches that address security, privacy, and robustness of settlement processes simultaneously. The need for security and robustness emerges as a vital property, as Internet of Things (IoT) devices become part of the smart grid; in the form of smart meters, home energy management systems (HEMSs), intelligent transformers, and so on. In this paper, we use energy blockchain to secure energy transactions among customers and the utility. In addition, we formulate a mixed-strategy stochastic game model to address uncertainties in DR contributions of agents and achieve optimal demand response decisions. This model utilizes the processing hardware of customers for block mining, stores customer DR agreements as distributed ledgers, and offers a smart contract and consensus algorithm for energy transaction validation. We use a real dataset of residential demand profiles and photovoltaic (PV) generation to validate the performance of the proposed scheme. The results show the impact of electric vehicle (EV) discharging and customer demand reduction on increasing the probability of successful block mining and improving customer profits. Moreover, the results demonstrate the security and robustness of our consensus algorithm for detecting malicious activities.
Peer-to-peer (P2P) electricity trading in a blockchain environment has established the foundation of trust among microgrids. However, the default behaviors caused by uncertainties associated with renewable energy and microgrids profit-seeking still trigger a crisis of trust. Therefore, this study proposes a two-stage credit management strategy (TSCMS) for P2P electricity trading among microgrids to reduce the default behaviors, which contains credit-based risk control optimization stage and credit-based P2P electricity trading stage. In the first stage, a robust control optimization of credit-based risk preference is proposed to realize flexible management of renewable energy uncertainty through adaptive robustness factor, thus well balancing the reliability and economy of trading. In the second stage, a queuing priority is provided using equivalent price conversion to realize credit-based rewards and punishments. Experimental results show that the proposed TSCMS can enhance the trust of microgrids and create a reliable trading environment.
The emergence of distributed energy and prosumers has greatly promoted the reform of the energy market. Blockchain technology provides a very potent solution for distributed energy transactions, however, blockchain technology still develops slowly in the energy field due to the unstable performance of the imperfect system. This paper aims to narrow this gap by the following steps. First, a function-driven integration method is proposed to combine the merit of blockchain distributed ledger and traditional centralized databases. Then a hybrid energy blockchain system architecture is designed, including the blockchain layer, smart contract layer, database layer, and client layer. Further, a peer-to-peer market mechanism considering energy storage arbitrage and fully automated matchmaking is developed on the hybrid blockchain system. The case study proves the effectiveness and safety of the system. The proposed architecture of combined blockchain and database technologies effectively paves the way for constructing a more reasonable and feasible distributed energy trading platform.
Intelligent predictive models are fundamental in peer-to-peer (P2P) energy trading as they properly estimate supply and demand variations and optimize energy distribution, and the other featured values, for participants in decentralized energy marketplaces. Consequently, DeepResTrade is a research work that presents an advanced model for predicting prices in a given traditional energy market. This model includes numerous fundamental components, including the concept of P2P trading systems, long-term and short-term memory (LSTM) networks, decision trees (DT), and Blockchain. DeepResTrade utilized a dataset with 70,084 data points, which included maximum/minimum capacities, as well as renewable generation, and price utilized of the communities. The developed model obtains a significant predictive performance of 0.000636% Mean Absolute Percentage Error (MAPE) and 0.000975% Root Mean Square Percentage Error (RMSPE). DeepResTrade’s performance is demonstrated by its RMSE of 0.016079 and MAE of 0.009125, indicating its capacity to reduce the difference between anticipated and actual prices. The model performs admirably in describing actual price variations in, as shown by a considerable R2 score of 0.999998. Furthermore, F1/recall scores of [1, 1, 1] with a precision of 1, all imply its accuracy.
With the rapid development of blockchain technology, blockchain-based neural network short-term power demand forecasting has become a research hot spot in the power industry. This paper aims to combine neural network algorithms with blockchain technology to establish a trustworthy and efficient short-term demand forecasting model. By leveraging the distributed ledger and immutability features of blockchain, we ensure the security and reliability of power demand data. Meanwhile, short-term power demand forecasting research using neural networks has the potential to increase the stability of the power system and offer opportunities for improved operations. In this paper, the root mean-square-error model evaluation indicator was used to compare the back propagation (BP) neural network algorithm and the traditional forecasting algorithm. The evaluation was performed on the randomly selected five household power datasets. The results show that, by comparing the long short-term memory network (LSTM) model with the BP neural network model, it was determined that the average prediction impact increases by about 25.7% under stable power demand. The short-term power prediction model of the BP neural network has the average error values more than two times lower than the traditional prediction model. It was shown that the use of the BP neural network algorithm and blockchain could increase the accuracy of short-term power demand forecasting, allowing the neural network-based algorithm to be implemented and taken into account in the research on short-term power demand forecasting.
The rapid adoption of hydrogen as an eco-friendly energy source has necessitated the development of intelligent power management systems capable of efficiently utilizing hydrogen resources. However, guaranteeing the security and integrity of hydrogen-related data has become a significant challenge. This paper proposes a pioneering approach to ensure secure hydrogen data analysis through the integration of blockchain technology, enhancing trust, transparency, and privacy in handling hydrogen-related information. By combining blockchain with intelligent power management systems, the efficient utilization of hydrogen resources becomes feasible. The utilization of smart contracts and distributed ledger technology facilitates secure data analysis, real-time monitoring, prediction, and optimization of hydrogen-based power systems. The effectiveness and performance of the proposed approach are demonstrated through comprehensive case studies and simulations. Notably, our prediction models, including ABiLSTM, ALSTM, and ARNN, consistently delivered high accuracy with MAE values of approximately 0.154, 0.151, and 0.151, respectively, enhancing the security and efficiency of hydrogen consumption forecasts. The blockchain-based solution offers enhanced security, integrity, and privacy for hydrogen data analysis, thus contributing to the advancement of clean and sustainable energy systems. Additionally, the research identifies existing challenges and outlines potential future directions for further enhancing the proposed system. This study adds to the growing body of research on blockchain applications in the energy sector, with a specific focus on secure hydrogen data analysis and intelligent power management systems.
Blockchain technology and renewable energy links can realize the fusion of energy flow and information flow. The combination of the two has a high degree of matching, and the related research is also increasing. Although experts have expanded their research on renewable energy and blockchain, there are still restrictions and gaps in the existing research. In this paper, 920 articles from 2016 to 2023 were chosen and visualized using bibliometrics and CiteSpace software to analyze the research field's development base, collaborative groups, hot topics and evolutionary trends. Based on the foregoing research, we summarized the pertinent literature in the area of “Renewable energy & Blockchain” and thoroughly analyzed the current hot issues in depth to determine the future development direction. The findings show that, first, related research in the field increased rapidly in 2016–2023, the research topics and hotspots of “Renewable energy & Blockchain” focus on energy system optimization, clean energy technologies, circular development and renewable energy trading. Second, all subjects have a specific strength and influence contribution in the field, from the micro to the macro level. Among them, China, the United States and their universities have relatively mature research experience and research ability. Third, research gaps in blockchain-based renewable energy application, technology, and policy, as well as potential trends in energy internet, energy management, energy systems, green certificate trading, and green power trading. This study provides researchers with a theoretical foundation for gaining a thorough understanding of current research efforts and future research directions in this field.
With the rapid rise of renewable energy sources (RES) in energy grids, the need for secure peer-to-peer (P2P) energy trading platforms are increasing. Such platforms should allow energy users to buy/sell energy, participate in bids, and negotiate prizes. The decentralized blockchain architecture makes it suitable for building an efficient energy trading platform. In this paper, we propose a private blockchain-based energy trading platform using a proof of authority (PoA) consensus algorithm for energy users within a neighbourhood or a microgrid. The private Ethereum blockchain is configured using three Raspberry Pi 4 models, which act as three nodes on the network. The trading process is implemented using a smart contract deployed on the nodes by configuring each node as a buyer and seller. The nodes can add offers, choose offers, and trade energy within the nodes in the network. All the transactions are recorded on the blockchain. For ease of demonstration, Python Flask and HTTP-based interaction environment is developed.
To effectively regulate the energy supply, advanced metering infrastructure (AMI) deployment is gaining momentum in various parts of the world. Energy distributors, service providers, and consumers must work together to address several issues. All the transactions need to be documented properly and securely. Third parties can be trusted in those transactions by using blockchain. With the deployment of advanced metering infrastructure (AMI) and distributed ledgers, blockchain may aid in safeguarding and facilitating the movement of data. This chapter discusses the viability of utilizing blockchain for advanced metering infrastructure and the security risks and threat landscape.
As the current global environment is deteriorating, distributed renewable energy is gradually becoming an important member of the energy internet. Blockchain, as a decentralized distributed ledger with decentralization, traceability and tamper-proof features, is an important way to achieve efficient consumption and multi-party supply of new energy. In this article, we establish a blockchain-based mathematical model of multiple microgrids and microgrid aggregators’ revenue, consider the degree of microgrid users’ preference for electricity thus increasing users’ reliance on the blockchain market, and apply the one-master-multiple-slave Stackelberg game theory to solve the energy dispatching strategy when each market entity pursues the maximum revenue. The simulation results show that the blockchain-based dynamic game of the multi-microgrid market can effectively increase the revenue of both microgrids and aggregators and improve the utilization of renewable energy.
Xiaole Su, Yuanchao Hu, Liu Wei, Zhipeng Jiang · 7 authors
Abstract The extension of emerging renewable energy sources such as wind and water turbines, solar panels, and the increasing usage of electric vehicles requires the supply and distribution of energy in a small device on local scale and it has created new methods of supplying and selling electricity. Middle buyers and end users can obtain the local energy with the peer‐to‐peer trading method in this large and hierarchical market. This method enables market to manage and exchange the electricity between major suppliers and medium and local levels. Blockchain technology is developing in peer‐to‐peer exchange of electricity and acts as a reliable, efficient, and safe technology in the electricity trading market. In this method, while preserving the privacy of electricity users, by using smart contracts and by removing intermediaries in the energy supply and demand market, direct commercial interactions between energy suppliers and consumers are done. The blockchain technology, while creating trust between the parties in the energy market, reduces the cost of electricity trading and increases its scalability with using the intermediate energy aggregators. In this research, the blockchain‐based model, is presented for distribution and peer‐to‐peer transactions in the energy market. The suggested model provides the possibility of registration low‐cost instant transactions at the power grid in any specific period of time. The above method, unlike periodic payments, provides immediate access to bills and small payments. Since the transactions outside the blockchain chain are not recorded, this system guarantees its honest and independent operation without fraud and failure. The smart contract method based on blockchain, reduces the transaction fees and speeds up electricity trading. Also, the experimental investigation in 20 nodes shows the time required to determine the exchange contract in the blockchain method. The average is improved by 49.7% in this method. Also, the negotiation convergence time has become 47% faster.
J. P. Gupta, Sanskar Jain, Suprava Chakraborty, Владимир Панченко · 6 authors
Advancing the sustainable energy transition is a major need in nations that are constantly evolving and developing in terms of their energy economy. India has been chosen for the purpose of analysis due to the heterogenous nature of its polity, topographies, infrastructural capabilities and diverse framework. In accordance with the sustainable development goals proposed by the UN, a metamorphosis is observed within the renewable energy sector of the nation. Blockchain technology that facilitates a transparent transition is incorporated on various upcoming platforms. This is backed up by peer-to-peer trading of energy providing a prosumer with an autonomous environment. The goal of this paper is to highlight the struggles and challenges faced by the energy sector as it takes up unconventional and non-traditional approaches within the country. It also aims to discover potential ways that would help a nation like India facilitate such a transition by studying its ongoing trends. The need is eminent for a practical study that is specific to a developing nation like India in terms of P2P energy trading enabled by blockchain technology to promote the use of open-sourced electricity and achieve a decentralized system.
Mahfuzur Rahman, Solaiman Chowdhury, Mohammad Shorfuzzaman, Mohammad Kamal Hossain · 5 authors
The advancement of mircogrids and the adoption of blockchain technology in the energy-trading sector can build a robust and sustainable energy infrastructure. The decentralization and transparency of blockchain technology have several advantages for data management, security, and trust. In particular, the uses of smart contracts can provide automated transaction in energy trading. Individual entities (household, industries, institutes, etc.) have shown increasing interest in producing power from potential renewable energy sources for their own usage and also in distributing this power to the energy market if possible. The key success in energy trading significantly depends on understanding one’s own energy demand and production capability. For example, the production from a solar panel is highly correlated with the weather condition, and an efficient machine learning model can characterize the relationship to estimate the production at any time. In this article, we propose an architecture for energy trading that uses smart contracts in conjunction with an efficient machine learning algorithm to determine participants’ appropriate energy productions and streamline the auction process. We conducted an analysis on various machine learning models to identify the best suited model to be used with the smart contract in energy trading.
With the widespread adoption of Renewable Energy Sources (RESs) in low-voltage distribution systems, opportunities for energy trading among peers have emerged. In particular, the advent of distributed ledgers and blockchain technologies has catalyzed the application of Peer-to-Peer (P2P) economic concepts in decentralized, small-scale energy trading. This paper focuses on the critical physical layer aspects of transactions within the context of P2P energy trading, with a specific emphasis on addressing network constraints. Key challenges include maintaining margins for over/under voltage, voltage balance, and preventing congestion, all of which must be upheld during P2P energy exchanges. To address these challenges, we propose a novel analytical approach tailored to distribution networks. Furthermore, we introduce the Block Double Auction (BDA) mechanism as the P2P market mechanism for determining the acceptance or rejection of P2P transactions. The effectiveness of our proposed method is validated using the IEEE 33-node distribution test system, demonstrating its robust capabilities.
Pengfei Zhao, Shuangqi Li, Zhidong Cao, Paul Jen‐Hwa Hu · 9 authors
Decentralized trading schemes involving energy prosumers have prevailed in recent years. Such schemes provide a pathway for increased energy efficiency and can be enhanced by the use of blockchain technology to address security concerns in decentralized trading. To improve transaction security and privacy protection while ensuring desirable social governance, this article proposes a novel two-stage blockchain-based operation and trading mechanism to enhance energy hubs connected with integrated energy systems (IESs). This mechanism includes multienergy aggregators (MAGs) that use a consortium blockchain and its enabled proof-of-work (PoW) to transfer and audit transaction records, with social governance principles for guiding prosumers’ decision-making in the peer-to-peer (P2P) transaction management process. The uncertain nature of renewable generation and load demand are adequately modeled in the two-stage Wasserstein-based distributionally robust optimization (DRO). The practicality of the proposed mechanism is illustrated by several case studies that jointly show its ability to handle an increased renewable generation capacity, achieve a 16.7% saving in the audit cost, and facilitate 2.4% more P2P interactions. Overall, the proposed two-stage blockchain-based trading mechanism provides a practical trading scheme and can reduce redundant trading amounts by 6.5%, leading to a further reduction of the overall operation cost. Compared to the state-of-the-art benchmark methods, our mechanism exhibits significant operation cost reduction and ensures social governance and transaction security for IES and energy hubs.
Felipe Condon, Patricia Franco, José Manuel Martínez, Ali M. Eltamaly · 6 authors
The widespread adoption of distributed energy resources (DERs) and the progress made in internet of things (IoT) and cloud computing technologies have enabled and facilitated the development of various smart grid applications and services. This study aims to develop and implement a peer-to-peer (P2P) energy trading platform that allows local energy trading between consumers and prosumers within a microgrid which combines IoT and blockchain technologies. The proposed platform comprises an IoT-cloud home energy management system (HEMS) responsible for gathering and storing energy consumption data and incorporates a blockchain framework that ensures secure and transparent energy trading. The proposed IoT–blockchain architecture utilizes a Chainlink oracle network and a private Ethereum blockchain. Through the use of smart contracts, consumers and prosumers can participate in an open auction to trade energy, while the settlement process involves acquiring external energy data from an API through the oracle network. The performance of the platform is evaluated through a testbed scenario using real-world energy data from a real house in Valparaiso, Chile, while storing those measurements in AWS cloud, validating the feasibility of the proposed architecture in enabling local energy trading. This work contributes to the development of energy management systems by providing a real-world implementation of an IoT–blockchain architecture for local energy trading. The integration of these technologies will allow for a more efficient and secure energy trading system that can benefit prosumers, consumers, and utilities.
Liaqat Ali, M. Imran Azim, Nabin B. Ojha, Jan Peters · 9 authors
The electricity market has increasingly played a significant role in ensuring the smooth operation of the power grid. The latest incarnation of the electricity market follows a bottom-up paradigm, rather than a top-down one, and aims to provide flexibility services to the power grid. The blockchain-based local energy market (LEM) is one such bottom-up market paradigm. It essentially enables consumers and prosumers (those who can generate power locally) within a defined power network topology to trade renewable energy amongst each other in a peer-to-peer (P2P) fashion using blockchain technology. This paper presents the development of such a P2P trading-facilitated LEM and the analysis of the proposed blockchain-based LEM by means of a case study using actual German residential customer data. The performance of the proposed LEM is also compared with that of BAU, in which power is traded via time-of-use (ToU) and feed-in-tariff (FiT) rates. The comparative results demonstrate: (1) the participants’ bill savings; (2) mitigation of the power grid’s export and import; (3) no/minimal variations in the margins of energy suppliers and system operators; and (4) cost comparison of Ethereum versus Polygon blockchain, thus emphasising the domineering performance of the developed P2P trading-based LEM mechanism.
Abstract In a networked microgrid system (NMS), various heterogeneous microgrids are interconnected. A networked microgrid system facilitates a new kind of physical design that provides numerous advantages such as distributed economic optimization, reliability, resiliency, and focusing on distributed generations and customers. Designing the secure and privacy‐protected smart power contract between electricity suppliers and consumers, considered as agents, of different microgrids, is a challenging task in the networked‐ microgrid system. Each microgrid implements a heterogeneous or isomorphic blockchain based platform. The blockchain interoperability, inherently, presents in different blockchains implemented by various microgrids. This paper reviews the interoperability issues and smart contract designs in blockchain‐based systems and proposes new mechanisms to cater blockchain interoperability challenges to facilitate the design of secure and seamless smart contracts among different blockchains of microgrids. A network hub of heterogeneous blockchains of network microgrids has been proposed. A methodology has been developed to transfer tokens between interoperable blockchains. A distributed identity‐based microgrid (DIBM) scheme is incorporated to make the networked microgrid system secure and trustworthy. This paper suggests an effective consensus protocol for cross‐chain architecture that improves the tokenization system and smart power contract designs. Asynchronous blockchain based federated learning for peer‐to‐peer smart power exchange has been implemented in learning process of interoperable and heterogeneous blockchain based network hub of microgrid. For simulation purposes, MATLAB and python programming have been used with real‐time data of microgrids.
Umang Rajendra Barbhaya, Lokendra Vishwakarma, Debasis Das
The smart grid’s local energy market (LEM) enables each renewable-energy-powered residential unit to profit from trading energy with others. However, energy trading in LEMs is witnessing many cybersecurity challenges, such as transaction integrity and user authentication. Among these, energy trading and price computing using auctions have generally been accepted. However, state-of-the-art auction schemes are centralized and unfair, meaning that prosumers are not equally benefited. We proposed ETradeChain, a platform for energy trading based on blockchain technology. The trading in ETradeChain happens with the help of a modified double auction scheme to make it fully decentralized and fair for all the members of LEM, along with information secrecy. We have developed a pseudo coin called Pcoins (Power Coins) based on the energy generated by the prosumer for energy trading in LEM. The ETradeChain uses a double auction process with Pcoin as a stake to reach a consensus on the energy transaction. Furthermore, ETradeChain employs blockchain technology to demonstrate the viability of real-time peer-to-peer (P2P) trading for practical purposes. We have set up a Testbed for the experiments using Raspberry Pi 4 model B IoT devices. The experiment results show that the ETradeChain minimized the consensus delay up to 90% with 60% high throughput. It also achieved 80% low computational overhead and 70-80% low storage and communication overhead.