Peer to Peer Energy Trade Among Microgrids Using Blockchain Based Distributed Coalition Formation Method

Abstract

Unpredictable environmental conditions make renewable energy generators of a microgrid unreliable. Energy trade among microgrids may reduce dependency on utility grid (which uses traditional energy generator that causes massive greenhouse gas emission). Coalition formation algorithms are popular tools to execute energy trade among microgrids. In this paper we develop coalition formation method using the blockchain mechanism. Advantages of our solution over existing coalition formation algorithms for microgrid energy trade are as follows:-Distributed execution: We show how to find coalition structure in a distributed fashion. It improves robustness of the computation compared with centralized executions of coalition formation algorithms. This is because failure of a centralized computing entity will lead to the failure of energy trade among all MGs but in a distributed solution such problem can be avoided. -Asynchronous execution: In our solution, multiple coalition formation algorithms are executed asynchronously. Most of the existing solutions execute coalition formation algorithms at regular time intervals in synchronous fashion. Our solution reduces the waiting time for a microgrid to trade energy with other microgrids. Energy requirement of microgrids may depend on weather and changes in their energy requirement may be not synchronous, i.e., energy requirement of all microgrids may not change at the same time and after regular intervals. -Scalable: We show that the distributed execution of coalition formation algorithm is more scalable than centralized algorithms for coalition formation. -Convergence: We show that the proposed distributed algorithm converges quickly. -Local energy trade: We show that the proposed distribution algorithm promotes local energy trade to reduce energy loss due to long transmission. It should be noted that feasibility of local energy trade depends on satisfaction of constraints in distribution network. Our solution aim to reduce the distance between matched energy supplier and energy provider if the distribution network allows such an energy transfer. -Trust: The trust between a microgrid and the computation entity who is responsible for generating coalition structure is ignored in the existing solutions. We use a blockchain to eliminate such trust establishment requirement. -Security and Privacy: The existing literature ignores the security of the computation framework. A MG's energy surplus / deficit reveals its energy consumption patterns and it may cause security problems. We mitigate such security problems using the blockchain mechanism.

Blockchain Based Sustainable Local Energy Trading Considering Home Energy Management and Demurrage Mechanism

“…The elements of the grid are integrated with the smart contract's blockchain framework to ensure the verification of DR agreements, the programmatic definition of expected energy flexibility levels, the balance within production and demand of energy, and the validation of DR agreements. In Reference [23], Thakur et al presented a distributed, scalable, and secure blockchain-based network for coalition structure creation and microgrid energy trading. However, the determination of the trading price between the parties is difficult to reach via negotiation.…”

“…Equation (23) means that the total energy before and after shifting the load is assumed to be unchanged, while Equation (24) means that the shifted electricity load must lie between the minimum and maximum electricity loads of the original customer profile.…”

“…As it can be seen in Tables 6 and 7, to satisfy FR with modified price, the hourly electricity cost has to be less than or equal to the maximum of 11858.75 and 5167.50 cents without HEM and demurrage mechanisms, respectively. Similarly, each household energy consumption satisfies the optimization problem constraints given in Equations (23) and (24) and falls within the FR boundary. To compute the FR points, the maximum and minimum energy loads are multiplied with maximum and minimum electricity cost prices collected from the utility and the agreed price from local energy trading.…”

EnerPort: Irish Blockchain project for peer- to-peer energy trading

“…A coalition structure is a partition over the peers where peers in each coalition trade energy among themselves. In (Thakur & Breslin, 2018) an algorithm for generating hierarchical coalition structures is developed using blockchain. Double auction for energy trade: This trade model is designed for competitive peers where the peers participate in a double auction for energy trade.…”

“…Double auction for energy trade: This trade model is designed for competitive peers where the peers participate in a double auction for energy trade. The trade model is implemented using blockchain in (Thakur et al, 2018). In this trade model, each peer submits its reservation price based on its forecast about its energy generation and consumption.…”