Peer-to-peer (P2P) energy markets are gaining interest in the energy sector as a means to increase the share of decentralised energy resources (DER), thus fostering a clean, resilient and decentralised supply of energy. Various reports have touted P2P energy markets as ideal use case for blockchain-technology, as it offers advantages such as fault-tolerant operation, trust delegation, immutability, transparency, resilience, and automation. However, relatively little is known about the influence of hardware and communication infrastructure limitations on blockchain systems in real-life applications. In this article, we demonstrate the implementation of a real-world blockchain managed microgrid in Walenstadt, Switzerland. The 37 participating households are equipped with 75 special smart-meters that include single board computers (SBC) that run their own, application-specific private blockchain. Using the field-test setup, we provide an empirical evaluation of the feasibility of a Byzantine fault tolerant blockchain system. Furthermore, we artificially throttle bandwidth between nodes to simulate how the bandwidth of communication infrastructure impacts its performance. We find that communication networks with a bandwidth smaller than 1000 kbit/s-which includes WPAN, LoRa, narrowband IoT, and narrowband PLC-lead to insufficient throughput of the operation of a blockchain-managed microgrid. While larger numbers of validators may provide higher decentralisation and fault-tolerant operation, they considerably reduce throughput. The results from the field-test in the Walenstadt microgrid show that the blockchain running on the smart-meter SBCs can provide a maximum throughput of 10 transactions per second. The blockchain throughput halts almost entirely if the system is run by more than 40 validators. Based on the field test, we provide simplified guidelines for utilities or grid operators interested in implementing local P2P markets based on BFT systems.
Due to environmental and resiliency benefits, distributed energy resources (DER) are a potential solution for meeting future electricity demand, but their integration into centralized power markets on the large scale is challenging. Many practitioners argue that blockchain technology can create new market structures for DER like local peer-topeer energy markets which foster renewable generation. To get an understanding of the status quo of the research on blockchain-based energy exchange, we conducted a systematic literature review on the existing academic articles and industry projects. This article describes the design and technical specifications of the first real blockchain-based electricity market in Switzerland derived from this literature review and outlines the implementation of this market in the real world. The findings provide valuable guidelines for the integration of DER into future sustainable energy markets.
Prosumers in many regions are facing reduced feed-in tariffs and currently have no possibility to influence the level of remuneration for the locally produced solar energy. Peer-to-peer communities may offer an alternative to the feed-in tariff model by enabling prosumers to directly sell their solar energy to local consumers (possibly at a rate that is beneficial for both consumer and prosumer). The Quartierstrom project investigates a transactional energy system that manages the exchange and remuneration of electricity between consumers, prosumers and the local electric grid provider in the absence of intermediaries. This whitepaper describes the prototypical real-world system being implemented in the town of Walenstadt, Switzerland, with 37 participating households. The community members of this pilot project pay a reduced tariff for grid usage if the electricity produced by a prosumer is sold to another community member, which is located on the same voltage or grid level downstream a substation 1 . Such a tariff structure incentivizes local balancing, i.e. locally produced energy can be consumed locally whenever possible to avoid costs from higher grid levels. The blockchain is a novel technology suitable to log the produced and consumed units of energy within a community, making it possible to implement market places. In those marketplaces, both prosumers and consumers can indicate a price at which they are willing to sell / buy locally produced solar energy without the intermediation of a utility. The key goals of this project are the assessment of A) the technical, economical and ecological feasibility of a blockchain-based community energy system regarding local utilization of solar energy, grid quality and energy efficiency and B) resulting dynamics regarding local market prices and user acceptance.
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