Lightweight Blockchain Framework for Location-aware Peer-to-Peer Energy Trading

Peer-to-Peer (P2P) energy trading can facilitate integration of a large number of small-scale producers and consumers into energy markets. Decentralized management of these new market participants is challenging in terms of market settlement, participant reputation and consideration of grid constraints. This paper proposes a blockchain-enabled framework for P2P energy trading among producer and consumer agents in a smart grid. A fully decentralized market settlement mechanism is designed, which does not rely on a centralized entity to settle the market and encourages producers and consumers to negotiate on energy trading with their nearby agents truthfully. To this end, the electrical distance of agents is considered in the pricing mechanism to encourage agents to trade with their neighboring agents. In addition, a reputation factor is considered for each agent, reflecting its past performance in delivering the committed energy. Before starting the negotiation, agents select their trading partners based on their preferences over the reputation and proximity of the trading partners. An Anonymous Proof of Location (A-PoL) algorithm is proposed that allows agents to prove their location without revealing their real identity. The practicality of the proposed framework is illustrated through several case studies, and its security and privacy are analyzed in detail

Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models

Peer-to-peer, community or collective self-consumption, and transactive energy markets offer new models for trading energy locally. Over the past five years, there has been significant growth in the amount of academic literature examining how these local energy markets might function. This systematic literature review of 139 peer-reviewed journal articles examines the market designs used in these energy trading models. A modified version of the Business Ecosystem Architecture Modelling framework is used to extract market model information from the literature, and to identify differences and similarities between the models. This paper examines how peer-to-peer, community self-consumption and transactive energy markets are described in current literature. It explores the similarities and differences between these markets in terms of participation, governance structure, topology, and design. This paper systematises peer-to-peer, community self-consumption and transactive energy market designs, identifying six archetypes. Finally, it identifies five evidence gaps which require future research before these markets could be widely adopted. These evidence gaps are the lack of: consideration of physical constraints; a holistic approach to market design and operation; consideration about how these market designs will scale; consideration of information security; and, consideration of market participant privacy

Blockchain-Enabled Energy Trading Platforms: Reviewing Current Implementations, Challenges, and Future Prospects

Blockchain-enabled energy trading platforms have emerged as promising solutions for transforming traditional energy markets by enabling peer-to-peer (P2P) energy transactions and decentralized energy management. This abstract provides an overview of current implementations, challenges, and future prospects of blockchain-enabled energy trading platforms. Blockchain technology, known for its decentralized and immutable ledger system, offers several advantages for energy trading applications. By leveraging blockchain's transparency, security, and trustworthiness, energy trading platforms enable direct transactions between producers and consumers, bypassing intermediaries and reducing transaction costs. Moreover, blockchain facilitates the integration of renewable energy resources, demand response mechanisms, and smart grid technologies, fostering a more resilient and sustainable energy ecosystem. Several blockchain-enabled energy trading platforms have been deployed worldwide, showcasing diverse use cases and operational models. Platforms such as Power Ledger, Grid+, and WePower facilitate P2P energy trading among prosumers (producer-consumers) within microgrids or virtual power plants, empowering individuals and communities to monetize their excess energy generation and optimize their energy consumption patterns. These platforms utilize blockchain-based smart contracts to automate energy transactions, ensure transparent billing, and enable real-time settlement, enhancing efficiency and accountability in energy markets. Despite the potential benefits, blockchain-enabled energy trading platforms face several challenges and limitations. Scalability and throughput constraints of blockchain networks, interoperability issues among different blockchain protocols, and regulatory uncertainties pose significant barriers to widespread adoption. Moreover, the integration of physical energy infrastructure with blockchain technology requires robust cybersecurity measures to protect against cyber threats and ensure the integrity and reliability of energy transactions. Looking ahead, the future prospects of blockchain-enabled energy trading platforms are promising, with opportunities for innovation and growth. Advances in blockchain scalability solutions, such as sharding and layer-2 scaling solutions, hold potential for addressing scalability challenges and enabling large-scale deployment of energy trading platforms. Moreover, the emergence of interoperability protocols and industry standards, coupled with regulatory frameworks conducive to blockchain adoption, can foster greater interoperability and regulatory clarity in energy markets

A Systematic Literature Review of Peer-to-Peer, Community Self-Consumption, and Transactive Energy Market Models

Capper, T., Gorbatcheva, A., Mustafa, M. A., Bahloul, M., Schwidtal, J. M., Chitchyan, R., Andoni, M., Robu, V., Montakhabi, M., Scott, I., Francis, C., Mbavarira, T., Espana, J. M., & Kiesling, L. (2021). A Systematic Literature Review of Peer-to-Peer, Community Self-Consumption, and Transactive Energy Market Models. Social Science Research Network (SSRN), Elsevier. https://doi.org/10.2139/ssrn.3959620Peer-to-peer and transactive energy markets, and community or collective self-consumption offer new models for trading energy locally. Over the past 10 years there has been significant growth in the amount of academic literature and trial projects examining how these energy trading models might function. This systematic literature review of 139 peer-reviewed journal articles examines the market designs used in these energy trading models. The Business Ecosystem Architecture Modelling framework is used to extract information about the market models used in the literature and identify differences and similarities between the models. This paper identifies six archetypal market designs and three archetypal auction mechanisms used in markets presented in the reviewed literature. It classifies the types of commodities being traded, the benefits of the markets and other features such as the types of grid models. Finally, this paper identifies five evidence gaps which need future research before these markets can be widely adopted.publishersversionpublishe

Blockchain and internet of things for electrical energy decentralization: A review and system architecture

Decentralization in electrical power grids has gained increasing importance, especially in the last two decades, since transmission system operators (TSO), distribution system operators (DSO) and consumers are more aware of energy efficiency and energy sustainability issues. Therefore, globally, due to the introduction of energy production technologies near the consumers, in residential and industrial sectors, new scenarios of decentralized energy production (DEP) are emerging. To guarantee an adequate power management in the electrical power grids, incorporating producers, consumers, and producers-consumers, commonly designated as prosumers together, it is important to adopt intelligent systems and platforms that allow the provision of information on energy consumption and production in real time, as well as for obtaining the price for the sale and purchase of energy. In this research the literature is analysed to identify the appropriate solutions to implement a decentralized electrical power grid based on sensors, blockchain and smart contracts, evaluating the current state of the art and pilot projects already in place. A conceptual model for a power grid model is presented, with renewable energy production, combining Internet of Things (IoT), blockchain and smart contracts.A descentralização nas redes elétricas ganhou importância crescente, especialmente nas últimas duas décadas, uma vez que os operadores da rede de transporte (ORT), operadores da rede de distribuição (ORD) e consumidores estão mais conscientes das questões de eficiência energética e sustentabilidade energética. Globalmente, devido à introdução de tecnologias de produção de energia junto dos consumidores, nos setores residencial e industrial, estão a surgir novos cenários de produção de energia descentralizada. Para garantir uma adequada gestão de energia nas redes elétricas, integrando produtores, consumidores e produtores-consumidores, vulgarmente designados por prosumers, é importante adotar sistemas e plataformas inteligentes que permitam fornecer informações sobre consumo e produção de energia em tempo real, bem como para obter o preço de compra e venda de energia. Nesta pesquisa, a literatura é analisada para identificar as soluções adequadas para implementar uma rede elétrica descentralizada baseada em sensores, blockchain e contratos inteligentes, avaliando o estado da arte atual e projetos piloto já em curso. É apresentado um modelo conceptual para um modelo de rede elétrica, com produção de energia renovável, combinando Internet das Coisas (IoT), blockchain e contratos inteligentes

A System Dynamic Model for Application of Blockchain in the United States Electricity Sector

A thesis presented to the faculty of the College of Business and Technology at Morehead State University in partial fulfillment of the requirements for the Degree Master of Science by Oluwafemi Ezekiel Oyeniran on April 14, 2020

A Peer-to-Peer Energy Trading Framework in Distribution Systems Considering Network Constraints

With the widespread adoption of Renewable Energy Sources (RESs) in low-voltage distribution systems, opportunities for energy trading among peers have emerged. In particular, the advent of distributed ledgers and blockchain technologies has catalyzed the application of Peer-to-Peer (P2P) economic concepts in decentralized, small-scale energy trading. This paper focuses on the critical physical layer aspects of transactions within the context of P2P energy trading, with a specific emphasis on addressing network constraints. Key challenges include maintaining margins for over/under voltage, voltage balance, and preventing congestion, all of which must be upheld during P2P energy exchanges. To address these challenges, we propose a novel analytical approach tailored to distribution networks. Furthermore, we introduce the Block Double Auction (BDA) mechanism as the P2P market mechanism for determining the acceptance or rejection of P2P transactions. The effectiveness of our proposed method is validated using the IEEE 33-node distribution test system, demonstrating its robust capabilities.Comment: 10 pages, 8 fig

Impact of peer-to-peer trading and flexibility on local energy systems

To meet the 2050 net zero emission targets, energy systems around the globe are being revisited to achieve multi-vector decarbonisation in terms of electricity, transport, heating and cooling. As energy systems become more decentralised and digitised, local energy systems will have greater potential to self-sustain and hence, decrease reliance on fossil-fuelled central generation. While the uptake of electric vehicles, heat pumps, solar and battery systems offer a solution, the increase in electricity demand poses challenges in terms of higher peak demand, imbalance and overloading. Additionally, the current energy market structure prevents these assets in the distribution network from reaching their true techno-economic potential in flexibility services and energy trading. Peer-to-peer energy trading and community-level control algorithms achieve better matching of local demand and supply through the use of transactive energy markets, load shifting and peak shaving techniques. Existing research addresses the challenges of local energy markets and others investigate the effect of increased distributed assets on the network. However, the combined techno-economic effect requires the co-simulation of both market and network levels, coupled with simultaneous system balance, cost and carbon intensity considerations. Using bottom-up coordination and user-centric optimisation, this project investigated the potential of network-aware peer-to-peer trading and community-level control to increase self-sufficiency and self-consumption in energy communities. The techno-economic effects of these strategies are modelled while maintaining user comfort levels and healthy operation of the network and assets. The proposed strategies are evaluated according to their economic benefit, environmental impact and network stress. A case study in Scotland was employed to demonstrate the benefits of peer-to-peer trading and community self-consumption using future projections of demand, generation and storage. Additionally, the concept of energy smart contracts, embedded in blockchains, are proposed and demonstrated to overcome the major challenges of monitoring and contracting. The results indicate benefits for various energy systems stakeholders. Distribution system end-users benefit from lower energy costs while system operators obtain better visibility of the local-level flexibility along with the associated technical challenges in terms of losses, imbalance and loading. From a commercial perspective, community energy companies may utilise this study to inform investment decisions regarding storage, distributed generation and transactive market solutions. Additionally, the insights about the energy smart contracts allow blockchain and relevant technology sectors to recognise the opportunities and challenges of smart contracts and distributed ledger technologies that are specific to the energy sector. On the broader scale, energy system operators, regulators and high-level decision-makers can compare the simulated impact of community-led energy transition on the net zero goals with large-scale top-down initiatives