A trusted peer-to-peer market of joint energy and reserve based on blockchain

Abstract

• A joint energy-reserve prosumer-centric market is proposed. • The trading mechanism not only enables peer-to-peer (P2P) energy trading but also quantifies the reserve cost and the value of flexibility. • A blockchain-based trading algorithm is proposed to implement an autonomous and trustworthy prosumer-centric market. • A pipelined delegated Byzantine fault tolerance (PDBFT) consensus algorithm is proposed to improve the efficiency of blockchain-based energy trading. With the increasing penetration of distributed energy resources, the traditional producer-centric electricity market is moving to a prosumer-centric market, where prosumers can trade with each other in an autonomous pattern. However, there remain research gaps on the pricing and allocation of joint energy and reserves in an autonomous prosumer-centric market. This paper firstly designs a joint energy-reserve peer-to-peer (P2P) trading mechanism. The mechanism not only enables P2P energy trading but also quantifies the reserve cost and the value of flexibility. Then, a blockchain-based trading algorithm is proposed to implement a trustworthy prosumer-centric market. A pipelined delegated Byzantine fault tolerance (PDBFT) consensus algorithm is proposed to ensure robustness and improve the efficiency of the autonomous trading process. Numerical results show the effectiveness of the trading mechanism and the performance of the blockchain-based trading algorithm. Compared with only considering energy trading, the proposed mechanism reduces the total cost of the market by 16.03%. Compared with using the traditional practical Byzantine fault tolerance (PBFT) consensus algorithm, the computational time of market clearing on blockchain is decreased by 45.90%.