Blockchain mediated virtual power plant: From concept to demonstration

Abstract

Large penetration of various types of distributed energy resources and new requirements in electricity markets, have facilitated creation of sophisticated distributed energy resource aggregation systems for providing grid services. Aggregators such as Virtual Power Plants enable participation of small- and medium-scale distributed energy resources in electricity markets, interacting with grid operators to collectively provide ancillary power and energy services. These interactions between grid operator, Virtual Power Plants operator and distributed energy resources are complex both in terms of contractual agreements and provision of services. On all layers, accurate tracking of distributed energy resource usage and execution of contracts is required for establishing trust between transacting participants. Digitalisation and automation of processes such as control of distributed energy resources, verification and payouts for services will add value for solving complexity of dealing with multiple parties in a Virtual Power Plants aggregation model. The authors present a blockchain-integrated Virtual Power Plants system that enables full automation of distributed energy resource controls through smart contracts, digital trust between participants and immediate payouts for services. Effectiveness of the developed blockchain mechanism is demonstrated on a pilot Virtual Power Plants system comprising distributed energy storage systems, renewables, EV charging stations and loads with a total size of 1.8 MWs. Additionally, we propose a new mechanism for managing renewable energy curtailments through blockchain.