A Novel Energy Trading Framework Using Adapted Blockchain Technology

Abstract

Microgrid planning philosophies are changing from islanding in the case of abnormal conditions to independent sustainability for constant secure, reliable operation. Large independent operators foresee a shift from gigantic-grid bulk generation and transmission to distributed generation (DG) from smaller, interlinked grid clusters. Customers and the community will benefit, but system operators and utilities will face challenges. Introduced to enhance electricity exchange and the energy market structure in such grids, transactive energy networks favor customers and DG owners, establish a utility business model, and enable power system innovation. Planners are also increasingly interested in blockchains for secure transactions. Blockchain-based transactive energy markets promise flexibility, transparency, security, competition, and superlative low-cost reliability, offering ideal energy-trading solutions in isolated microgrids and distribution-level markets. This article presents the development and case-study validation of a comprehensive transactive energy market framework with linked blockchain and power system layers, a novel market structure based on an end-user marginal price, and an adapted blockchain that fits intrinsic power system requirements. A new slot-ahead electricity market model is established through integration with the modified blockchain. With blockchain operation, monetary funds are managed equitably so that wallet billing rates for customers, utilities, and DG owners match broadcast smart-meter data.