Abstract
The newest Distributed Ledger Technology platforms, which delegate the execution of complex tasks in the form of Smart Contracts, make it possible to devise novel local electricity market frameworks, which are performed in a fully automated fashion. This paper proposes a novel fully automated platform for energy and ancillary service markets in distribution networks, able to run in a decentralized fashion, bypassing the need for a physical central authority. The proposed platform, able to perform the role of Virtual Decentralized Market Authority, shows excellent potential applications in the management of local ancillary service markets in local energy communities of various sizes. The proposed Virtual Decentralized Market Authority showed reasonable running costs and comparable technical management capabilities with respect to a physical, centralized managing authority.
Highlights
In recent years, different political, economic, and technical drivers have been leading the evolution of the electric power system towards the smart grid paradigm
6 shows the ratio of random solutions to solutions thatwith comply with all 6 shows the ratio of random marketmarket solutions leading leading to solutions that comply all network network constraints with the as a function of network load and generation constraints with the Continuous Double Auction (CDA), Optimal Continuous Double Auction (OCDA) and NCDA as a function of network load and generation variability
As the NCDA shows, on average, around a 95% probability of a probability of meeting the network constraints, solutions fall in the range, depending meeting the network constraints, solutions fall in the 90–100% range, depending on the size of the on thevariability
Summary
Different political, economic, and technical drivers have been leading the evolution of the electric power system towards the smart grid paradigm. SCs allow the users to find a supply source by means of counterparty-less self-executing libraries residing on a distributed platform, accessible by every electronic device with internet access This decentralization brings great advantages, since it excludes the need for a human-based central authority, removing its running costs from the system, increasing transparency and eliminating the risk of corruption. A frequently debated open question remains on the effective economic feasibility of these approaches, due to the high computational costs related to the execution of smart contracts From this point of view, the existing literature fails to provide an economical evaluation of the costs of decentralized platforms for the management of user communities and markets.
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