Lehlogonolo P. I. Ledwaba, Gerhard P. Hancke, Sherrin J. Isaac, Hein S. Venter
The increasing strain on ageing generation infrastructure has seen more frequent instances of scheduled and unscheduled blackouts, rising reliability on fossil fuel based energy alternatives and a slow down in efforts towards achieving universal access to electrical energy in South Africa. To try and relieve the burden on the National Grid and still progress electrification activities, the smart microgrid model and secure energy trade paradigm is considered—enabled by the Industrial IoT (IIoT) and distributed ledger technologies (DLTs). Given the high availability requirements of microgrid operations, the limited resources available on IIoT devices and the high processing and energy requirements of DLT operations, this work aims to determine the effect of native DLT algorithms when implemented on IIoT edge devices to assess the suitability of DLTs as a mechanism to establish a secure, energy trading market for the Internet of Energy. Metrics such as the node transaction time, operating temperature, power consumption, processor and memory usage are considered towards determining possible interference on the edge node operation. In addition, the cost and time required for mining operations associated with the DLT-enabled node are determined in an effort to predict the cost to end users—in terms of fees payable and mobile data costs—as well as predicting the microgrid’s growth and potential blockchain network slowdown.
Distributed energy, mainly composed of new energy, plays an important role in promoting the development of new energy. At present, the development of distributed energy is greatly hindered by imperfect trading platform and unstable output of new energy. Blockchain is decentralized, autonomous and requires collaborative management. Its own technical characteristics have the inherent advantages of reconstructing the energy system. The alliance chain in the blockchain is more suitable for building a distributed energy trading platform. The paper constructs a distributed energy transaction model based on alliance blockchain, studies the integration mode of blockchain and distributed energy transaction, and explores the application of blockchain in distributed transaction. The paper provides a new idea for optimizing and reconstructing the traditional distributed energy trading platform, and providing decision support for promoting distributed energy trading.
Recent developments in power system and internet technology introduced blockchain technology to energy trading. In addition, the growing penetration of distributed energy resources made the division of distribution systems into microgrids a tempting solution for technical and economical problems. In this paper, the feasibility of applying blockchain technology as an accounting system for energy trading within each island and between interconnected islands is considered. The distribution system is considered after being optimally divided into islands. Energy hubs, aggregated thermostatically controlled loads and aggregated electric vehicles (EVs) are considered. Optimal demand-side management is applied taking into consideration the uncertainties arising from renewable energy sources due to their nature, load forecasting, energy price due to bidding actions accompanying energy transactions, and energy exchange in EV parking stations due to EV availability patterns. The blockchain-based energy trading (BET) system is considered in three steps. The first step is carried out considering EV parking stations for energy trading between EVs and then between parking stations and island consumers with billing transfer between different blockchains. The second step considers the trading between prosumers and consumers within each island. In the third step, the BET system is applied for energy trading between interconnected islands. The feasibility of the proposed energy trading system is validated using a realistic case of the distribution system of Alexandria, Egypt. The simulation results show the positive impact of applying blockchain-based energy trading on energy cost.
The current electricity networks were not initially designed for the high integration of variable generation technologies. They suffer significant losses due to the combustion of fossil fuels, the long-distance transmission, and distribution of the power to the network. Recently, \emph{prosumers}, both consumers and producers, emerge with the increasing affordability to invest in domestic solar systems. Prosumers may trade within their communities to better manage their demand and supply as well as providing social and economic benefits. In this paper, we explore the use of Blockchain technologies and auction mechanisms to facilitate autonomous peer-to-peer energy trading within microgrids. We design two frameworks that utilize the smart contract functionality in Ethereum and employ the continuous double auction and uniform-price double-sided auction mechanisms, respectively. We validate our design by conducting A/B tests to compare the performance of different frameworks on a real-world dataset. The key characteristics of the two frameworks and several cost analyses are presented for comparison. Our results demonstrate that a P2P trading platform that integrates the blockchain technologies and agent-based systems is promising to complement the current centralized energy grid. We also identify a number of limitations, alternative solutions, and directions for future work.
Jae Song, Eung Seon Kang, Hyeon Woo Shin, Ju Wook Jang
We implement a peer-to-peer (P2P) energy trading system between prosumers and consumers using a smart contract on Ethereum blockchain. The smart contract resides on a blockchain shared by participants and hence guarantees exact execution of trade and keeps immutable transaction records. It removes high cost and overheads needed against hacking or tampering in traditional server-based P2P energy trade systems. The salient features of our implementation include: 1. Dynamic pricing for automatic balancing of total supply and total demand within a microgrid, 2. prevention of double sale, 3. automatic and autonomous operation, 4. experiment on a testbed (Node.js and web3.js API to access Ethereum Virtual Machine on Raspberry Pis with MATLAB interface), and 5. simulation via personas (virtual consumers and prosumers generated from benchmark). Detailed description of our implementation is provided along with state diagrams and core procedures.
The fast growth of distributed energy resources (DERs), such as distributed renewables (e.g., rooftop PV panels), energy storage systems, electric vehicles, and controllable appliances, drives the power system toward a decentralized system with bidirectional power flow. The coordination of DERs through an aggregator, such as a utility, system operator, or a third-party coordinator, emerges as a promising paradigm. However, it is not well understood how to enable trust between the aggregator and DERs to integrate DERs efficiently. In this paper, we develop a trustable and distributed coordination system for DERs using blockchain technology. We model various DERs and formulate a cost minimization problem for DERs to optimize their energy trading, scheduling, and demand response. We use the alternating direction method of multipliers (ADMM) to solve the problem in a distributed fashion. To implement the distributed algorithm in a trustable way, we design a smart contract to update multipliers and communicate with DERs in a blockchain network. We validate our design by experiments using real-world data, and the simulation results demonstrate the effectiveness of our algorithm.
Distributed peer-to-peer power energy markets are emerging quickly. Due to central governance and lack of effective information aggregation mechanisms, energy trading cannot be efficiently scheduled and tracked. We devise a new distributed energy transaction system over the energy Industrial Internet of Things based on predictive analytics, blockchain, and smart contract technologies. We propose a solution for scheduling distributed energy sources based on the Minimum Cut Maximum Flow theory. Blockchain is used to record transactions and reach consensus. Payment clearing for the actual power consumption is executed via smart contracts. Experimental results on real data show that our solution is practical and achieves a lower total cost for power energy consumption.
This paper proposes an energy scheduling mechanism among multiple microgrids (MGs) and also within the individual MGs. In this paper, electric vehicle (EV) energy scheduling is also considered and is integrated in the operation of the microgrid (MG). With the advancements in the battery technologies of EVs, the significance of Vehicle-to-Grid (V2G) is increasing tremendously. So, designing the strategies for energy management of electric vehicles (EVs) is of paramount importance. The battery degradation cost of an EV is also taken into account. Vickrey second price auction is used for truthful bidding. To enhance the security and trust, blockchain technology can be incorporated. The market is shifted to decentralized state by using blockchain. To encourage the MGs to generate more, contribution index is allotted to each prosumer of a MG and to the MGs as a whole, depending on which priority is given during auction. The system was simulated using IEEE 118 bus feeder which consists of 5 MGs, which in turn contain EVs and prosumers.
This paper tries to build a system, providing maximum participation and maximum resiliency for the existing power system using existing technologies only but in an innovative approach. The proposed ecosystem consists of distributed power generation nodes, consumers, smart grids, and microgrids to make peer-to-peer energy transactions easy, both physically and economically. The proposal can be divided into two parts, viz. physical and digital. A user cannot send power to another customer in need with few exceptions in a traditional system. This work has shown how each user can be connected to the smart grid via one or many micro-grids. Moreover, their trade will be automated on the digital side by Ethereum, a public blockchain that supports smart contracts. To make things more efficient and easy, we introduced a token-based economy, empowered by a smart contract. In this way, the resiliency of the whole ecosystem will be improved dramatically.
Abstract Renewable-energy resources require overwhelming adoption by the common masses for safeguarding the environment from pollution. In this context, the prosumer is an important emerging concept. A prosumer in simple terms is the one who consumes as well as produces electricity and sells it either to the grid or to a neighbour. In the present scenario, peer-to-peer (P2P) energy trading is gaining momentum as a new vista of research that is viewed as a possible way for prosumers to sell energy to neighbours. Enabling P2P energy trading is the only method of making renewable-energy sources popular among the common masses. For making P2P energy trading successful, blockchain technology is sparking considerable interest among researchers. Combined with smart contracts, a blockchain provides secure tamper-proof records of transactions that are recorded in distributed ledgers that are immutable. This paper explores, using a thorough review of recently published research work, how the existing power sector is reshaping in the direction of P2P energy trading with the application of blockchain technology. Various challenges that are being faced by researchers in the implementation of blockchain technology in the energy sector are discussed. Further, this paper presents different start-ups that have emerged in the energy-sector domain that are using blockchain technology. To give insight into the application of blockchain technology in the energy sector, a case of the application of blockchain technology in P2P trading in electrical-vehicle charging is discussed. At the end, some possible areas of research in the application of blockchain technology in the energy sector are discussed.
The aim of this work is to provide an up-to-date comprehensive review of the peer-reviewed articles, the research projects and the entrepreneurial efforts that consider the utilization of blockchain technology in the energy sector in general and the power grid in particular. Through our review study we systematically classify existing applications of blockchain technology in the energy sector according to their field of activity. The comprehensive and holistic picture provided aims to contribute to the body of knowledge of the applicability of blockchain technology within the energy sector and pave the way for further research in this field.
This paper incorporates a new perspective into P2P energy trading coordination schemes for EVs by considering Quality of Service (QoS) management. QoS could be utilized as a control metric to facilitate resilient and reliable transactions according to user preferences. To that end, this paper proposes a novel decentralized QoS-based system for P2P energy trading among EV energy providers and consumers. The system utilizes smart contracts to carry out the matching between EVs and monitor the delivery of a QoS-based P2P contract without the presence of a third party. Two QoS-based mechanisms are proposed to match trading EVs in this system. The proposed mechanisms are designed to match single-consumer to multiple-providers and multiple-consumers to multiple-providers based on consumers’ and providers’ QoS requirements and offers, respectively. A fuzzy-based approach with minimum and intelligible input is introduced to determine the weight values of each QoS attribute. Further, a penalty mechanism is developed to discourage dishonest requests/offers and ensure that trading parties stick to their contractual obligations. Numerical simulations are conducted to validate the effectiveness of the proposed QoS-based mechanisms.
Decomposing the large distribution grids into interconnected microgrids (MGs) can potentially enhance the power system's efficiency, sustainability, resiliency, and reliability. However, energy management within the entire network would be more complicated and challenging. This article develops a novel energy management framework for interconnected MGs based on a blockchain technology. Utilizing the blockchain technology can potentially enhance the system security, and also reduce the system risks, mitigate financial fraud, and cut down the operational cost. A priority list is first defined to get into an efficient energy tradeoff within the interconnected MGs. Moreover, the incentive contract is proposed to provide a price discount for a party that purchases more power from one sub-MG. A stochastic framework based on the unscented transform technique is also established to manage the uncertainties associated with hourly load demands and output power of renewable energy sources. The proposed model is formulated as a mixed-integer linear programming problem and solved through the blockchain-based energy/power management algorithm. The case study includes residential, industrial, and commercial MGs-namely, three residential, one commercial, and one critical load (hospital). The simulation results show the high efficiency and effectiveness of the proposed model and validate its economic and reliability merits.
The current centralized model of the electricity market is not efficient in performing distributed energy transactions required for the transactive smart grid. One of the prominent solutions to this issue is to integrate blockchain technologies, which promise transparent, tamper-proof, and secure transaction systems specifically suitable for the decentralized and distributed energy markets. Blockchain has already been shown to successfully operate in a microgrid peer-to-peer (P2P) energy market. The prime determinant of different blockchain implementations is the consensus algorithm they use to reach consensus on which blocks/transactions to accept as valid in a distributed environment. Although different blockchain implementations have been proposed independently for P2P energy market in the microgrid, quantitative experimental analyses and comparison of the consensus algorithms that the different blockchains may use for energy markets, has not been studied. Identifying the right consensus algorithm to use is essential for scalability and operation of the energy market. To this end, we evaluate three popular consensus algorithms: (i) proof of work (PoW), (ii) proof of authority (PoA), and (iii) Istanbul Byzantine fault tolerance (IBFT), running them on a network of nodes set up using a network of docker nodes to form a microgrid energy market. Using a series of double auctions, we assess each algorithm's viability using different metrics, such as time to reach consensus and scalability. The results indicate that PoA is the most efficient and scalable consensus algorithm to hold double auctions in the smart grid. We also identified the minimum hardware specification necessary for devices such as smart meters, which may run these consensus algorithms.
Blockchain, a revolutionary technology is a buzzword and has gained huge popularity and attention. Blockchain creates an immutable chain of transaction blocks without the intervention of a trusted third party that enables secured trustless environments. Distributed ledger technology such as blockchain has drawn significant interest from government agencies, financial institutions, start-ups, technology enthusiastic, financial institutions, and the academic and research community. This technology can support a wide range of applications from identity management to IoT applications. The energy industry has been consistently catalyzed by innovations like decarbonization, decentralization, and digitization. With numerous organizations developing low-cost renewable energy revolution like solar powers, wind energy, and Energy as a service, our proposed solution would ease the demand for energy supply in rural areas by combining blockchain and IoT. To address the growing demand of the rural electrifying process we propose a Distributed Application (DApp) that can securely record the ownership and consumption of energy generated through solar panels connected through an IoT device. This DApp empowers rural energy supply trading without grids and has the potential to improve the incentives to utility providers by offering carbon credits or renewable energy certificates thus attracting investors.