Enabling Peer to Peer Energy Trading Marketplace Using Consortium Blockchain Networks

abstract: Blockchain technology enables peer-to-peer transactions through the elimination of the need for a centralized entity governing consensus. Rather than having a centralized database, the data is distributed across multiple computers which enables crash fault tolerance as well as makes the system difficult to tamper with due to a distributed consensus algorithm. In this research, the potential of blockchain technology to manage energy transactions is examined. The energy production landscape is being reshaped by distributed energy resources (DERs): photo-voltaic panels, electric vehicles, smart appliances, and battery storage. Distributed energy sources such as microgrids, household solar installations, community solar installations, and plug-in hybrid vehicles enable energy consumers to act as providers of energy themselves, hence acting as 'prosumers' of energy. Blockchain Technology facilitates managing the transactions between involved prosumers using 'Smart Contracts' by tokenizing energy into assets. Better utilization of grid assets lowers costs and also presents the opportunity to buy energy at a reasonable price while staying connected with the utility company. This technology acts as a backbone for 2 models applicable to transactional energy marketplace viz. 'Real-Time Energy Marketplace' and 'Energy Futures'. In the first model, the prosumers are given a choice to bid for a price for energy within a stipulated period of time, while the Utility Company acts as an operating entity. In the second model, the marketplace is more liberal, where the utility company is not involved as an operator. The Utility company facilitates infrastructure and manages accounts for all users, but does not endorse or govern transactions related to energy bidding. These smart contracts are not time bounded and can be suspended by the utility during periods of network instability.Dissertation/ThesisMasters Thesis Computer Science 201

Blockchain based energy transactions for a prosumer community

PhD thesis in Information technologyIntegration of solar micro-generation capabilities in domestic contexts is on the rise, leading to the creation of prosumer communities who generate part of the energy they consume. Prosumer communities require a decentralized, transparent and immutable transaction system in order to extract value from their surplus energy generation and usage flexibility. The aim of this study is to develop frameworks and methods to create such a prosumer transaction system with self enforcing smart contracts to facilitate trading of energy assets such as electricity units, energy flexibility incentives and storage credits. Blockchain is a transparent, distributed ledger for consensus based transaction processing maintained by a network of peer nodes. Hyperledger Fabric is a blockchain platform that offers the added benefits of lower operating cost, faster transaction processing, user authentication based access control and support for self enforcing smart contracts. This thesis investigates the applicability of Hyperledger Fabric to tokenize and transact energy assets in a unified transaction system. Data driven approaches to implement an incentive based energy flexibility system for peak mitigation on the blockchain are also investigated. To this end, the stakeholders for such a transaction management system were identified and their business relationships and interactions were described. Energy assets were encapsulated into blockchain tokens and algorithms were developed and encoded into self enforcing smart contracts based on the stakeholder relationships. A unified transaction framework was proposed that would bring on board all the stakeholders, their trading relationships and the assets being transacted. Tokens and methods in the transaction system were implemented in fungible and non fungible versions and the versions were critically compared in terms of application area, design, algorithmic complexity, performance, advantages and disadvantages. Further, with a focus on energy flexibility applications, a prosumer research dataset was analysed to gain insights into the production and consumption behaviors. Based on these insights, a data driven approach for peak mitigation was proposed and implemented on the Hyperledger Fabric blockchain. The thesis thus addresses different aspects of a blockchain based prosumer transaction system, and shows the feasibility of proposed approaches through implementation and performance testing of proofs of concept

Blockchain Based Smart Auction Mechanism for Distributed Peer-to-Peer Energy Trading

Blockchain based framework provides data immutability in a distributed network. In this paper, we investigate the application of blockchain for peer-to-peer (P2P) energy trading. Traditional energy trading systems use simple passing mechanisms and basic pricing methods, thus adversely affect the efficiency and buyers’ social welfare. We propose a blockchain based energy trading mechanism that uses smart passing of unspent auction reservations to (a) minimise the time taken to settle an auction (convergence time), (b) maximise the number of auction settlement; and (c) incorporate second-price auction pricing to maximise buyers’ social welfare in a distributed double auction environment. The entire mechanism is implemented within Hyperledger Fabric, an open-source blockchain framework, to manage the data and provide smart contracts. Experiments show that our approach minimises the convergence time, maximises the number of auction settlement, and increases the social welfare of buyers compared to existing methods

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

Integration of Blockchain and Auction Models: A Survey, Some Applications, and Challenges

In recent years, blockchain has gained widespread attention as an emerging technology for decentralization, transparency, and immutability in advancing online activities over public networks. As an essential market process, auctions have been well studied and applied in many business fields due to their efficiency and contributions to fair trade. Complementary features between blockchain and auction models trigger a great potential for research and innovation. On the one hand, the decentralized nature of blockchain can provide a trustworthy, secure, and cost-effective mechanism to manage the auction process; on the other hand, auction models can be utilized to design incentive and consensus protocols in blockchain architectures. These opportunities have attracted enormous research and innovation activities in both academia and industry; however, there is a lack of an in-depth review of existing solutions and achievements. In this paper, we conduct a comprehensive state-of-the-art survey of these two research topics. We review the existing solutions for integrating blockchain and auction models, with some application-oriented taxonomies generated. Additionally, we highlight some open research challenges and future directions towards integrated blockchain-auction models