Abstract

The integration of distributed energy resources and the transition to smart cities are shifting the urban energy sector to a decentralized operating system. Blockchain-based microgrids, where small-scale operators trade electricity among each others, have gained remarkable attention recently. However, most of the proposed schemes study smart grids in prosperous cities. In this study, the performance of a solar-based power trading scheme is investigated in a shortage-prone context, Beirut City. Thus, we resort to a game-theoretic approach to model power trading as a repeated game between buildings at the urban scale. Results show that solar energy can cover up to 25% of the city electricity needs, depending on the rooftops area coverage. On the other hand, we found that deploying a peer-to-peer trading scheme has marginal impact since the energy demand in the city exceeds the supply and most buildings would prioritize self-consumption.

Highlights

  • The urban energy sector is undergoing face-paced transformations linked to the accelerated advancement in renewable energy systems and to the penetration of distributed energy resources

  • The main challenge of renewable energy resources is their variability under different weather conditions, which triggers the need for flexible and stable energy operations [11]

  • We explore the potential of power trading in the city of Beirut

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Summary

Introduction

The urban energy sector is undergoing face-paced transformations linked to the accelerated advancement in renewable energy systems and to the penetration of distributed energy resources. There is a concomitant “digital transition” that the sector is witnessing due to the development of Information and Communication Technologies (ICT) and the penetration of smart energy services [39] This emerging complexity of the energy systems calls for further research of decentralized and digitized approaches to optimize city-wide power management [3]. By scaling down from a centralized grid to a group of interconnected or individual microgrids, small-scale participants can trade energy within their communities, and control their energy generation and demand Such market urges the need for a secure and smart information system [29]. Some nodes may be malicious, and tend to form collisions and blow up the principle of decentralization [26] To address these risks, game theory has been applied in the blockchain network [26]. Nodes can learn and predict each other strategies which optimize the decision making strategies and reduce the security risks

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