Aidana Kalakova, Arlan Zhanatbekov, Arkhat Surash, H. S. V. S. Kumar Nunna · 5 authors
This work proposes the use of blockchain technology to create a Decentralized Transactive Energy platform for Peer-to-Peer Energy Trading without authorized third-party agents. The distributed double auction mechanism is used in the proposed model as it enables every peer in the system to become an auctioneer, where the blockchain component will eliminate the single point of attack and guarantee the legal actions of all peers with the secure process of transactions. The main contribution of the paper is the combined use of Demand Response with a Decentralized Network. By considering optimal prosumer scheduling in the system, both preferences and needs of the peers in the network will be maximized. Experimental testing of the proposed strategy shows quick convergence of the decentralized auction, loss minimization caused by long transmission, improved security, and efficiency of the system.
A blockchain, which is well known as one of the distributed ledgers, has attracted in many research fields. In this paper, we discuss the effectiveness and limitation of a blockchain in distributed optimization. In distributed optimization, the original problem is decomposed, and the local problems are solved by multiple agents. In this paper, ADMM (Alternating Direction Method of Multipliers) is utilized as one of the powerful methods in distributed optimization. In ADMM, an aggregator is basically required for collecting the computation result in each agent. Using blockchains, the function of an aggregator can be contained in a distributed ledger, and an aggregator may not be required. As a result, tampering from attackers can be prevented. As an application, we consider energy management systems (EMSs). By numerical experiments, the effectiveness and limitation of blockchain-based distributed optimization are clarified.
Taeyun Ha, Donghyun Lee, Chunghyun Lee, Sungrae Cho
We design the power smart contract system based on VCG-auction-based transaction algorithm and block chain in the power trading market consisting of Prosumer (producer + consumer) capable of producing renewable energy. The analysis of the advantages and disadvantages of renewable energy and the differences between power sources are analyzed in detail. Investigate production and storage technology of renewable energy. The requirements and roles are organized from the perspective of the buyer/seller/intermediation system/blockchain, and the scenario is established. Establish overall system flow.
With the booming of smart grid, The ubiquitously deployed smart meters constitutes an energy internet of things. This paper develops a novel blockchain-based transactive energy management system for IoT-aided smart homes. We consider a holistic set of options for smart homes to participate in transactive energy. Smart homes can interact with the grid to perform vertical transactions, e.g., feeding in extra solar energy to the grid and providing demand response service to alleviate the grid load. Smart homes can also interact with peer users to perform horizontal transactions, e.g., peer-to-peer energy trading. However, conventional transactive energy management method suffers from the drawbacks of low efficiency, privacy leakage, and single-point failure. To address these challenges, we develop a privacy-preserving distributed algorithm that enables users to optimally manage their energy usages in parallel via the smart contract on the blockchain. Further, we design an efficient blockchain system tailored for IoT devices and develop the smart contract to support the holistic transactive energy management system. Finally, we evaluate the feasibility and performance of the blockchain-based transactive energy management system through extensive simulations and experiments. The results show that the blockchain-based transactive energy management system is feasible on practical IoT devices and reduces the overall cost by 25%.
Fardin Ahmed Niloy, Md. Abu Nayeem, Md. Majedur Rahman, Md. Nozib Ud Dowla
The adaptation of renewable energy and forsaking the conventional fuels for energy generation would not be feasible solely by the government body; thus, the participation of the consumers is crucial. This paper proposes a blockchain-based Peer-to-Peer power trading system, which provides the opportunity for the consumers to contribute to the grid through renewable energy sources. With the integration of a smart microgrid, the system is intended to remain functional during the isolation from the national grid, while making the system self-sufficient. The contributors will be able to make a profit by sharing the produced energy through a smart contract. Furthermore, all the transitions take place only when the preset conditions are satisfied, besides due to the characteristics of blockchain, no participant can alter the data, making the system more reliable. The smart contract was composed in solidity language and multiple trading was performed in the Binance blockchain platform.
In order to improve the economy and safety of multi-microgrids (MMGs) scheduling, this paper proposes a research on MMGs scheduling strategy that takes into account dynamic electricity prices based on the blockchain. We first introduce the principle of blockchain, analyze the security and economy of the combination of blockchain and MMGs scheduling, and design the scheduling architecture and process based on the blockchain platform. Second, we set a dynamic electricity price model according to the total power supply and demand of MMGs, and set a load optimization model. Finally, we take optimal system economy and minimum environmental pollution as the objective function, then use the linear programming method and the improved krill herd algorithm (KHA) with nonlinear changes in weights to solve the problem. The simulation results show that: (1) The dynamic electricity prices can reflect the power supply and demand of microgrids and optimize the load; (2) Comparing the three scheduling schemes, the strategy in this paper can improve the economic and environmental protection of MMGs by 37.33% and 39.34%, while reduce the interactive power between the microgrid and the distribution network by 56.28%, and the curtailment rate by 63.22%; (3) The improved krill herd algorithm has higher convergence speed and convergence accuracy;(4) The blockchain technology can ensure the security of scheduling data.
Shuguo Chen, Weibin Ding, Zhongzheng Xiang, Yuanyuan Liu
The power trading system has the characteristics of nonlinearity, dynamics, and complexity. Part of the business data in the trading system needs to be exposed to numerous external business systems. The traditional centralized power trading model has some problems, such as low data security and trust crisis of regulators. Blockchain technology provides prominent ideas for solving these problems. Firstly, the improved AdaBoost algorithm is used to predict the supply and demand gap of power trading nodes. Secondly, based on the fact that the information on the blockchain is only open to the power supply side, a two‐stage game model of asymmetric information between the power supply side and the power user is constructed to capture the price competition behavior between them in order to find the Nash equilibrium price in two stages. Finally, the US PJM market electricity market data are used to carry out an example analysis to verify the effectiveness of the algorithm and model.
Zhichao Ren, Wei Wang, Bo Chen, Xin Li · 7 authors
With the increase of the penetration rate of distributed generation on the distribution network side, the access of a large number of prosumers makes the trading information massive, and the demand of prosumers for more flexible power trading mechanism is also strengthened. Therefore, a weak-centralized power trading mode based on blockchain is proposed in this paper. Trading information is automatically stored in the blockchain in the form of smart contracts. The centralized organization only manages congestion and does not participate in the process of trading matching and settlement. In the distributed security verification, the successive over relaxation (SOR) iterative method is improved in this paper, which improves the iterative efficiency and convergence stability of the distributed algorithm. Finally, a case consisting of six nodes is presented to verify the feasibility of the method.
Adamu Sani Yahaya, Nadeem Javaid, Ahmad Almogren, Abrar Ahmed · 6 authors
Local energy trading has attracted the attention of many researchers as a result of its promising benefits. These benefits include minimizing gas emission, reducing power shortage, and establishing a competitive energy market. However, the energy trading between several prosumers causes trust, security, and privacy challenges in energy systems. On the other hand, a single point of failure and an increase in overall system cost occur when the energy system is managed using a centralized model. Therefore, to tackle the mentioned issues, this work proposes a two-layered secure Peer-to-Peer (P2P) energy trading model based on blockchain. The proposed model has two layers: authentication, and secure energy trading. In the authentication layer, in order to protect the proposed model from impersonation attacks, a mutual authentication process is implemented. In the energy trading layer, a new consensus mechanism is proposed to minimize the number of malicious validators. Afterwards, an incentive-punishment algorithm is introduced to motivate energy prosumers to contribute more energy in the model. Next, a dynamic contract theory based on supply-demand ratio pricing scheme is proposed. The purpose of the proposed pricing scheme is to solve the issues associated with the existing pricing schemes. It also preserves the privacy of the actual energy consumption behavior of the trading participants. Furthermore, a consensus mechanism validators’ selection model is proposed. The aim of the proposed work is to have an efficient and secure P2P energy trading platform. Simulations are executed to show the performance of the proposed model in terms of communication and computational costs, reputation, energy contributed, reward, and prices. The results for the authentication process show 7.45 ms computational cost and 1152 bits communication cost, which are better than the existing works. In the consensus process, 66.67% of the validators are selected to conduct the consensus for every transaction. This selection efficiently improves the consensus process and minimizes the number of malicious validators. In the proposed model, the increase in reward is observed for increased energy contribution, decreased non-malicious transactions and adjustment of energy consumption. The proposed model shows a satisfactory performance in terms of trust, security, and privacy.
The optimization problem for scheduling distributed energy resources (DERs) and battery energy storage systems (BESS) integrated with the power grid is important to minimize energy consumption from conventional sources in response to demand. Conventionally this optimization problem is solved in a centralized manner, limiting the size of the problem that can be solved and creating a high communication overhead because all the data is transferred to the central controller. These limitations are addressed by the proposed distributed consensus-based alternating direction method of multiplier (DC-ADMM) optimization algorithm, which decomposes the optimization problem into subproblems with private cost function and constraints. The distribution feeder is partitioned into low coupling subnetworks/regions, which solves the private subproblem locally and exchanges information with the neighboring regions to reach consensus. The relaxation strategy is employed for mixed-integer and coupled constraints introduced in the optimal power flow (OPF) problem by stationary and transportable BESS because DC-ADMM convergence is only guaranteed for strict convex problems. The information exchange and synchronization between subnetworks/regions are vital for distributed optimization. In this work, both of these aspects are addressed by the blockchain. The smart contract deployed on the blockchain network acts as a mediator for secure data exchange and synchronization in distributed computation. The blockchain-based distributed optimization problem's effectiveness is tested for a 0.5-MW laboratory microgrid for one hour ahead and day-ahead for the IEEE 123-bus and EPRI J1 test feeders, and results are compared with a centralized solution.
Vahid Hosseinnezhad, Barry Hayes, Brian O’Regan, Pierluigi Siano
Today, the development of decentralized energy management systems has accelerated due to the daily growth of renewable energy technologies and communications infrastructure. At the distribution system level, this approach has manifested itself with the emergence of the local energy market. In fact, the local energy market is becoming a new operating model to control local generation units. This paper describes the general architecture and elements used to implement a blockchain-based local energy market within a transactive management platform. After an overview of internet of things (IoT) communication technologies and the existing central-authority-based applications, the general structure and elements of peer-to-peer (P2P) networks are reviewed. Next, the concepts of blockchain-based technologies and the required specifications for different building layers are outlined based on the limited relevant literature available. The concepts and requirements are investigated to provide practical insights to design trading platforms.
Mohamed Hamouda, Mohammed E. Nassar, M.M.A. Salama
Inter-connected Microgrids (IMGs) have emerged as a promising structure for future grids, offering resilience and independence in energy exchangeability with neighbours. To enable such interconnected structure, an interconnected market between individual Microgrids (MGs) participating via an agent (i.e., Energy Management System [EMS]) is required. Each agent is Self-Benefit-Driven (SBD), which means that it works in the best interests of its own MG. Therefore, energy trading is established to enhance these benefits. In this paper, a new strategy is proposed for IMG energy trading that considers SBD actions for MGs' agents, and a unique utility function for each MG is defined. The function includes import and/or export benefits for each MG. Furthermore, the definition of the utility also considers the MG's different objectives when importing versus exporting. A centralized Nash bargaining model is proposed for IMG energy trading to ensure fair settlements through a central entity (e.g., Distributed System Operator [DSO]). The proposed algorithm is developed using an adapted blockchain that enhances the security and transparency of the platform. The effectiveness of the proposed strategy is verified using a number of case studies.
Vehicle-to-grid (V2G) technology is used in the modern eco-friendly environment for demand response management. It helps in reducing the carbon footprints in the environment. However, security and privacy of the information exchange between different entities are significant concerns keeping in view of the information exchange via an open channel, i.e., Internet among different entities such as plug-in hybrid electric vehicles (PHEVs), charging stations (CSs), and controllers in V2G environment. With an exponential rise in Electric vehicles (EVs) usage across the globe, there is a requirement of developing a seamless charging infrastructure for charging and billing. Moreover, secure information flow needs to be maintained at different levels in such an environment. Hence, this paper proposes a blockchain-based demand response management for efficient energy trading between EVs and CSs. In this proposal, miner nodes and block verifiers are selected using their power consumption and processing power. These nodes are responsible for the authentication of various transactions in the proposal. We also proposed a game theory-based solution to support energy management and peak load control off-peak and peak conditions. The proposed scheme has been evaluated using various performance evaluation metrics where its performance is found superior in comparison to the existing solutions in the literature.
Ahmet Yagmur, Beyhan Adanur Dedetürk, Ahmet Soran, Jaesung Jung · 5 authors
This paper discusses blockchain-based energy applications from the distribution system operator (DSO) perspective. Blockchain has a potential impact on newly emergent actors, such as electric vehicles (EVs) and charging facility units (CFUs) of the electricity grid. Although Blockchain offers magnificent decentralized solutions, owing to the reality of the existing grid structure, the central management of DSOs still plays a significant, non-negligible role. Numerous studies of proposed blockchain-based EV systems have investigated the energy costs of EVs, fast and efficient charging, privacy and security, P2P energy trading, sharing economy, selection of appropriate CFUs location, and scheduling. However, cooperation with DSO organizations has not been adequately addressed. Blockchain-based solutions mainly suggest an entirely distributed and decentralized approach for energy trading; however, converting the entire power system infrastructure is considerably expensive. Building a thoroughly decentralized electricity network is nearly impossible in a short time, particularly at the national grid level. In this regard, the applicability of the solutions is as significant as their appropriateness, especially from the DSO perspective, and must be examined closely. We searched and analyzed the blockchain literature related to EVs, CFUs, DERs, microgrids, marketing, and DSOs to define the DSO-based requirements for potential blockchain applications in the energy sector, specifically EV evolution.
Optimal scheduling of reconfigurable interconnected microgrids is a precious and critical task for the residential consumers especially with the integration of renewable energy sources, dispatchable units and energy storage systems. In this regard, not only the optimal scheduling of the microgrids in a realistic and correlated environment is a necessity, but also the guarantied security and the prevention of cyber-attacks are mandatory tasks for the operators. This article first addresses these issues by developing a novel framework based on blockchain for secured data transaction from the individual microgrids’ components to the central control unit and then tries to find the optimal scheduling plan using stochastic programming based on point estimate method (PEM). Through such a hybrid PEM-blockchain based framework, the interconnected microgrids can supply the residential loads in a fully reliable, economic and secured structure. We also consider a social-economic framework to not only minimize the total operating cost of the microgrids, but also benefit the customers by enhancing the social factors through the optimal switching. Considering the complex and nonlinear nature of the problem, an effective corrected crow search (CCS) algorithm is deployed to find the most optimal operating point for the microgrids. The quality and capabilities of the proposed model are investigated using a practical residential interconnected microgrid. The results show that the optimal switching could reduce the total operation cost from $22,716 to $21,935 (3.56% reduction). Also, the average energy not supplied (AENS) has reduced from 1.4115 to 1.352 kWh/customer.yr (4.40% reduction), which are notable values. The results advocate the quality and functionality of the proposed framework.
Juan Carlos Olivares, Enrique Reyes‐Archundia, José Antonio Gutiérrez Gnecchi, Ismael Molina‐Moreno · 6 authors
The lowering cost of electricity generation technologies by renewable means has caused the role of end-users to change from being a simple consumer to a producer of their energy. This new role has been called a prosumer and has contributed to modifying electricity markets, by allowing prosumers to merchandize the energy surplus to electricity companies and other prosumers. The fundamental key to any economic transaction is trust between the parties. Recently, new technologies, such as blockchain, are transforming transaction security, and allowing decentralization of the smart power grid. This study presents the development of a transactional model of electrical energy using the infrastructure of smart metering and blockchain systems to allow the commercialization of electrical energy by prosumers. The results show that for the Mexican electricity market, they can be good alternatives by reducing subsidies and being more profitable than current rates.
Mehdi Mehdinejad, Heidarali Shayanfar, Behnam Mohammadi‐Ivatloo
This paper designs and models a fully decentralized peer-to-peer energy token market for small-scale prosumers using blockchain technology in a smart grid environment in the presence of the demand response program (DRP) and demurrage mechanism. As the market players, prosumers in the local distribution network are considered in two groups, producers (sellers) and consumers (buyers). Using smart contracts, all sellers and buyers in the proposed market can engage in bilateral energy token transactions with each other under an agreed price and with the retail market at a certain price. Furthermore, the local consumers can participate in price-based DR programs and shift their consuming load to the periods with high local generation. demurrage mechanism is applied to avoid energy token accumulation and enhance attraction for local transactions. With demurrage in place, the redemption value of energy-backed tokens reduces with time. A fully decentralized approach called the primal-dual sub-gradient method is developed to clear this fully decentralized energy market in the presence of DRPs and demurrage. The proposed market-clearing scheme guarantees the global and feasible solution without requiring the players’ private information. Numerical studies demonstrated the feasibility and effectiveness of the proposed energy token market and the decentralized approach for its clearing.