Aggregation and remuneration in Demand-Response with a blockchain-based framework

Abstract

This article describes the possibility of using the blockchain technology for load and generation aggregation in a new distributed demand response (DR) service and customer remuneration system. The blockchain technology and the use of smart contracts for DR allow the creation of a distributed system, in which customers can communicate directly, in a transparent, secure, and traceable way, with the grid operator to provide their flexibility. In this article, the DR problem formulation takes into account several aspects, which are periodically executed. First, the blockchain records customers’ energy consumption or production; then, the smart contract starts calculating the baseline and the potential support provided by each customer to fulfill the requested load adaptation. Customers’ availability for generation and load profile modulation is also taken into account, as well as their privacy and an updated definition of the roles of grid and market operators in a new DR scenario supported by the blockchain technology. The blockchain used is Hyperledger Fabric, since it turned to be flexible for smart contract implementation while supporting multitenancy. Results show the possibility of successfully applying the blockchain technology to this particular topic, even considering privacy-preserving issues.