Abstract
Residential energy trading systems (RETS) enable homeowners with distributed energy resources (DERs) to participate in virtualized energy markets that have the potential to reduce the peak demand of residential communities. Blockchains are key enablers of RETS, by virtue of providing a decentralized, self-governed network that mitigates concerns regarding privacy and transparency. However, more real-world case studies are needed to evaluate the techno-economic viability of blockchain-based RETS to improve their positive uptake. Thus, this article develops a permissioned blockchain-based RETS, which enables homeowners to select bidding strategies that consider the individual preferences of their DERs, and further evaluates the impact of the bidding strategies on reducing the peak demand of the community. The proposed system is implemented on the permissioned Hyperledger Fabric platform, where a decentralized ledger is used to store all energy bids, and a smart contract is used to execute a double auction mechanism and dispatch the homeowner DERs. The proposed system is validated by conducting simulations on a 8-home community using real-world data, and also by deploying the system to a Canadian microgrid, where the smart contract execution time is benchmarked. Simulation results demonstrate the efficacy of the proposed system by achieving a peak demand reduction of up to 48 kW (62%), which leads to an average savings of $1.02 M for the distribution system operator by avoiding transformer upgrades. Also, the simulation results show that the execution time of the proposed smart contract is 17.12 seconds across 12 nodes, which is sufficient for RETS.
Highlights
The proliferation of distributed energy resources (DERs) within residential communities, such as rooftop photovoltaic arrays (PV), plug-in electric vehicles (EV), smart thermostats (ST), and battery energy storage systems (BESS), is primarily motivated by homeowners seeking to reduce their energy costs [1]
The bids are evaluated by the proposed smart contract to generate the market clearing price (MCP) for the market interval, and the MCP is fed back into the community model to determine the energy consumption/generation for each DER
A fuzzy bidding strategy was developed for BESSs to distinguish their operation as selfish or helpful, enabling helpful BESSs to alter their schedule to reduce peak demand
Summary
The proliferation of distributed energy resources (DERs) within residential communities, such as rooftop photovoltaic arrays (PV), plug-in electric vehicles (EV), smart thermostats (ST), and battery energy storage systems (BESS), is primarily motivated by homeowners seeking to reduce their energy costs [1]. Homeowners are seeking to increase their energy flexibility by having the option to rapidly switch between energy service providers that offer customized tariff structures, which consider homeowner preferences that seek to maximize the use of renewable resources [2]. The associate editor coordinating the review of this manuscript and approving it for publication was Yonghao Gui. complexity of these customized tariff structures, homeowners require transparent and automated energy billing that would remove inconsistencies in the recorded energy consumption and guarantee that the source of energy is from a verifiable renewable source [3]. In order to satisfy the aforementioned requirements, home energy management systems (HEMS) are typically proposed, where homeowners specify energy preferences related to the operation of their DERs, and the HEMS generates a dispatch schedule for the DERs as a result [4]. A significant limitation of HEMS’ is that they typically provide local
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