Application of a Community Battery-Integrated Microgrid in a Blockchain-Based Local Energy Market Accommodating P2P Trading

Ali, Liaqat; Azim, M. Imran; Peters, Jan; Bhandari, Vivek; Menon, Anand; Tiwari, Vinod; Green, Jemma; Muyeen, S. M.

doi:10.1109/access.2023.3260253

Cited by 15 publications

(5 citation statements)

References 44 publications

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“…This reality is acknowledged by the authors of [17], who then create an optimum P2P decisionforming method that ensures a reduction in LEM participants' energy bills. LEM participants are instructed to transact between feed-in-tariff (FiT) rates and time-of-use (ToU) tariffs in [18] to make P2P trading profitable for both buyers (who can both be prosumers and consumers) and sellers (who can be prosumers only). To further reduce their energy expenditures by rearranging their energy usage behaviours, the authors in [19] also introduce the concept of P2P negawatt trading in the LEM.…”

Section: A Related Work 1) Electricity Cost Reductionmentioning

confidence: 99%

Integrating Forecasting Service and Gen2 Blockchain Into a Local Energy Trading Platform to Promote Sustainability Goals

Ali,

Azim,

Ojha

et al. 2024

IEEE Access

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Peer-to-peer (P2P) trading in a local energy market (LEM) offers various participants the opportunity to negotiate and strike energy deals among themselves using a distributed ledger technology called blockchain. In this paper, a new local model is presented using a layer-2 scalability solution for secondgeneration (Gen2) blockchain technology to enable P2P trading among four types of participants: consumers, prosumers with solar photovoltaic (PV) systems, prosumers with solar PV systems and battery energy storage systems (BESSs), and electric vehicles (EVs). The proposed LEM trading platform involves several critical steps, including the creation of typical forecasting profiles for load consumption, solar generation, and battery state-of-charge (SOC) through a forecasting solution. Next, the LEM participants place their pricing bids using a trading agent service, and the trading engine collects the profiles data and bid prices, which performs matchmaking in a forward-facing market. The output of the trading engine consists of dispatch signals for prices and energy values that are sent to each participant to execute actual trading. Furthermore, the trading engines store the accepted and past bidding data and energy values of P2P trades for each participant in blockchain technology, which can be retrieved and displayed on the LEM user interface screens of participants and administrators using their blockchain addresses at any time during the trading process. This study focuses on simulating proposed LEM models, incorporating functional limitations and market rules. These rules aim to reduce energy costs, enhance margins for utilities and retailers, and mitigate grid congestion through BESSs, resulting in reduced operational and capital expenditure. LEM outcomes are analysed and compared with a Business-as-usual (BAU) model. Participants' energy trading behaviour, costrevenue dynamics, grid impact, and blockchain implementation costs are explored. The study highlights LEM benefits in terms of reduced CO2 emissions by 984 kg CO2, increased self-sufficiency by 2.2%, and improved financial benefits of all participants by 21.6%. The use of modern blockchain technology guarantees secure data storage and rapid, cost-effective energy trading, thereby making the proposed LEM platform a viable solution in the distribution market.INDEX TERMS Blockchain technology, forecasting service, LEM, P2P energy trading, smart contracts.

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Section: A Related Work 1) Electricity Cost Reductionmentioning

confidence: 99%

Integrating Forecasting Service and Gen2 Blockchain Into a Local Energy Trading Platform to Promote Sustainability Goals

Ali,

Azim,

Ojha

et al. 2024

IEEE Access

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“…This approach is suitable when the market is volatile and depends on weather conditions, time of day, and geographical location. Moreover, for P2P energy sharing in MGs, pricing mechanisms need to consider factors, such as battery aging, the depreciation of RESs, energy transmission losses, and the wear and tear of related facilities, to avoid inaccurate initial pricing [40]. Table 2 summarizes the methods related to pricing mechanisms for P2P and M2M energy trading and sharing within five years.…”

Section: Pricing Mechanism Of P2p and M2m Electricity Tradingmentioning

confidence: 99%

Electricity Pricing and Its Role in Modern Smart Energy System Design: A Review

Liu

et al. 2023

Designs

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Energy is the foundation for human survival and socio-economic development, and electricity is a key form of energy. Electricity prices are a key factor affecting the interests of various stakeholders in the electricity market, playing a significant role in the sustainable development of energy and the environment. As the number of distributed energy resources (DERs) increases, today’s power systems no longer rely on a vertical market model and fixed electricity pricing scheme but instead depend on power dispatch and dynamic pricing to match supply and demand. This can help prevent significant fluctuations in supply–load imbalance and maintain system stability. Modern power grids have evolved by integrating information, communication, and intelligent control technologies with traditional power systems, giving rise to the concept of smart electric grids. Choosing an appropriate pricing scheme to manage large-scale DERs and controllable loads in today’s power grid become very important. However, the existing literature lacks a comprehensive review of electricity pricing in power systems and its transformative impact on shaping the energy landscape. To fill this void, this paper provides a survey on the developments, methods, and frameworks related to electricity pricing and energy trading. The review mainly considers the development of pricing in a centralized power grid, peer-to-peer (P2P) and microgrid-to-microgrid (M2M) energy trading and sharing, and various pricing methods. The review will cover the pricing schemes in modern power systems, particularly with respect to renewable energy sources (RESs) and batteries, as well as controllable load applications, and the impact of pricing schemes based on demand-side ancillary services (DSAS) for grid frequency support. Lastly, this review article describes the current frameworks and limitations of electricity pricing in the current energy market, as well as future research directions. This review should offer a great overview and deep insights into today’s electricity market and how pricing methods will drive and facilitate the future establishment of smart energy systems.

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“…In addition, the total sold P2P power ∑ l∈L P LEM−P2P (l, e) and the total P2P bought power ∑ u∈U P LEM−P2P (u, e) in the LEM should be equal, as captured in (26). In this case, ∑ l∈L P LEM−EX (l, e) − ∑ l∈L P LEM−GRD (l, e) = ∑ u∈U P LEM−UN (u, e) − ∑ u∈U P LEM−GRD (u, e) , as per ( 24) and (25).…”

Section: System Power Balancementioning

confidence: 99%

“…Some recent studies also focused on the possibility of incorporating energy stakeholders' interests into the LEM mechanism while P2P transactions are frequently executed. For example, to curtail the peak demand of the LEM participants, the authors in [26] proposed a power grid-engaged P2P trading scheme that could function as a prospective alternative to the conventional energy demand response. The exercise of P2P trading among LEM participants was further reported on in [27] to match the local supply with the local demand.…”

Section: Introductionmentioning

confidence: 99%

Balancing Usage Profiles and Benefitting End Users through Blockchain Based Local Energy Trading: A German Case Study

Ali,

Azim,

Ojha

et al. 2023

Energies

Self Cite

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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.

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Application of a Community Battery-Integrated Microgrid in a Blockchain-Based Local Energy Market Accommodating P2P Trading

Cited by 15 publications

References 44 publications

Integrating Forecasting Service and Gen2 Blockchain Into a Local Energy Trading Platform to Promote Sustainability Goals

Integrating Forecasting Service and Gen2 Blockchain Into a Local Energy Trading Platform to Promote Sustainability Goals

Electricity Pricing and Its Role in Modern Smart Energy System Design: A Review

Balancing Usage Profiles and Benefitting End Users through Blockchain Based Local Energy Trading: A German Case Study

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