Blockchain-based energy trading in droop-based hybrid microgrids

Abstract

Blockchain technology has recently enhanced energy trading by providing a new low-cost, secure, and decentralized transaction mechanism. This paper proposes a new methodology for applying blockchain in energy trading for a hybrid microgrid. The proposed methodology accounts for droop-based hybrid microgrids. The active power droop for both AC and DC sub-grids are used to reflect the suppliers bidding. A bidding strategy is implemented to minimize the generation cost and therefore maximizes the social welfare. On the other hand, the reactive power droop for the AC sub-grids is utilized to minimize the power loss on the microgrid through bus voltage support. Further, the paper presents a power losses allocation approach for precisely allocating system losses to each node. A case study with many transactions is conducted. The results demonstrate the suggested framework’s efficacy in maximizing social welfare while minimizing system losses.