Energy Crowdsourcing and Peer-to-Peer Energy Trading in Blockchain-Enabled Smart Grids

Abstract

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 blockchainbased 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.

Privacy-Preserving Peer-to-Peer Energy Trading in Blockchain-Enabled Smart Grids Using Functional Encryption

“…A blockchain is a distributed ledger, the integrity of which is ensured through interlinked, cryptographically signed, and time-stamped blocks that contain transactions [2,9]. The data and transactions in blocks are validated by all participants ("nodes") based on a well-defined consensus protocol without a trusted third party.…”

“…Distributed renewable energy sources, such as solar panels and wind turbines, are drastically changing the way electricity is generated and consumed [1,2]. Energy prosumers, i.e., energy consumers producing their own electrical power, are rapidly proliferating.…”

A P2P-Dominant Distribution System Architecture

“…Münsing et al [16] present a blockchain-enabled decentralized P2P market-clearing algorithm using a convexified AC optimal power flow (OPF) and exploit the distribution locational marginal prices (DLMPs) to settle transactions among peers. Building on [16], Wang et al [17], [18] leverage blockchains to design a "Crowdsourced energy system" with a P2P energy trading for day-ahead and real-time operations. Although [16]- [18] incentivize P2P interactions, they do not compensate the power utilities for peers' usage of the distribution network.…”

“…Building on [16], Wang et al [17], [18] leverage blockchains to design a "Crowdsourced energy system" with a P2P energy trading for day-ahead and real-time operations. Although [16]- [18] incentivize P2P interactions, they do not compensate the power utilities for peers' usage of the distribution network.…”

“…Our definition of the P2P platform is technology agnostic, e.g. it can be enabled by either blockchains[12],[16]-[18] or other decentralized technologies.…”