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.
Benedikt Kirpes, Esther Mengelkamp, Georg Schaal, Christof Weinhardt
Abstract In this paper, we propose a model-based system architecture for an interoperable blockchain-based local energy market for prosumers in a residential microgrid setting. Based on the Smart Grid Architecture Model our analysis deduced 21 organizational, informational, technical and blockchain requirements for a local energy market and its underlying information system. These are evaluated in the Landau Microgrid case study. We derive, that a clear value proposition for the key stakeholders, standardization of data exchange and communication, and a suitable physical implementation are the major challenges.
One of the promising directions for finding solutions to the problems of regimes management and commercial electricity accounting in electric power systems is the application of distributed ledger technologies - Blockchain, which is due to increased availability of renewable energy sources. Currently, in the Russian Federation, the use of Blockchain technology is difficult for electric power systems operating in parallel with regional or unified power system due to the legislative restrictions imposed on operations in the retail and wholesale market for electrical energy. However, based on the distributed ledger technologies, the principles of the functioning of the electric energy market can be applied within the framework of small isolated electricity systems - microgrids. Mathematical modeling and calculation of the microgrid electric regimes were performed in the RastrWin3 program with the aim of accounting for losses in the electric power system. During the simulation it was obtained dependence of the power at the slack node from the number of load nodes for a different ratio of own generation to consumption in the node. In the case of positive power, there was a shortage of actual power in the system at the slack node, and in the case of a negative one, there was an excess of it. The use of distributed generation is economically justified in small isolated electricity system: the payback period of distributed generation devices is much less than their lifetime. It is possible to use Blockchain technology to organize mutual settlements between owners of small generation facilities in microgrid.
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.
Tianlu Gao, Wei Gao, Jun Jason Zhang, Wenzhong David Gao
With the installed capacities of Distributed Generations (DGs) dramatically increasing in power systems from Distributed Energy Resources (DERs) such as hydropower, wind, solar, geothermal and biomass, the operation methods of DERs tradings or transactions become more and more complicated. However, the energy market of DERs in Microgrids (MGs) is still under devolvement due to low security and transparency at present. Therefore, a small-scale microgrid energy market is proposed in this study based on Decentralized Autonomous Organization of Parallel, Integrity, Longevity, and Transparency (PILT-DAO) of the features of the blockchain. The microgrid owners can complete the transaction in the PILT-DAO market. In order to implement this energy trading platform, the first step is to simulate a modified distributed IEEE 13 node test feeders system. The next step is to develop a price mechanism method based on a consensus + innovation distributed algorithm to calculate the distributed Distribution Locational Marginal Price (DLMP). At the meantime, smart meters record the Power Flow (PF) data of each DG as one node of the whole simulated distributed power system and send them to blockchain including distributed price and power generation data. The third step is to constitute a decentralized autonomous market by programming smart contracts in Ethereum DAO, running in an artificial system parallelly. A case study of a small-scale microgrid energy market based on PILT-DAO is illustrated followed by the conclusion.
Saeid Esmaeili, Shahram Jadid, Amjad Anvari‐Moghaddam, Josep M. Guerrero
In this paper, optimal operational scheduling in smart microgrids in conjunction with hourly reconfiguration is investigated. The optimization problem has the objective function of minimizing total costs including the total loss, cost of bilateral contracts with fuel cell and photovoltaic owners, switching cost, and cost of exchanged power with wholesale market. To prevent the aged and risky switches from frequent switching actions over a short-term scheduling, a new index for switching action based on the remotely-controlled switch (RCS) ages and critical locations in the network is defined. The proposed optimization model is non-convex and non-linear, which is transformed into a Mixed-Integer Linear Programming (MILP) problem to be solvable with conventional solvers. The satisfactory performance of the proposed model is demonstrated on the 84-bus Taiwan power company system.
In this study we proposed a Blockchain-based distributed power generation trading system and its trading mechanism. By utilizing the linear supply bidding we prove that a market under assumption has a competitive equilibrium where each generator within the microgrid maximizes its profit, each load's demand is fulfilled and the welfare of whole microgrid has been maximized. Additionally we introduced a distributed supply bidding algorithm to solve the global welfare optimization. Last but not least, we designed a trading system architecture where each market participant is abstracted as a virtual agent and continuously interacting with each other by exchanging information through a smart power contract. Combining with our distributed algorithm, the microgrid market can reach its competitive equilibrium gradually. A numerical study is conducted on a simplified microgrid to demonstrate the effectiveness of our study.
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.
Perica Ilak, Ivan Rajšl, Lin Herenčić, Zlatko Zmijarević · 5 authors
Ongoing decentralization of electricity generation enables households to invest in small renewable energy sourced generation and to benefit from those investments by selling electricity and by selling their flexibility in demand and generation. Individual households including end consumers, producers and prosumers (acting as peers) could trade within community microgrids. The idea of decentralized electricity trading in a microgrid can be achieved with distributed ledger technology for peer-to-peer transactions. In this paper, this issue is examined and some ideas behind the concept discussed.
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.
Andrija Goranović, Marcus Meisel, Lampros Fotiadis, Stefan Wilker · 6 authors
Since the release of Bitcoins as crypto currency, Bitcoin has played a prominent part in the media. However, not Bitcoin but the underlying technology blockchain offers the possibility to innovatively change industries. The decentralized structure of the blockchain is particularly suitable for implementing control and business processes in microgrids, using smart contracts and decentralized applications. This paper provides a state of the art survey overview of current blockchain technology based projects with the potential to revolutionize microgrids and provides a first attempt to technically characterize different start-up approaches. The most promising use case from the microgrid perspective is peer-to-peer trading, where energy is exchanged and traded locally between consumers and prosumers. An application concept for distributed PV generation is provided in this promising area.