M2M Blockchain: The Case of Demand Side Management of Smart Grid

Abstract

The purpose of this paper is to explore applications of blockchain technology related to demand side management of smart grid and to present an example that blockchain is used to facilitate machine-to-machine (M2M) interaction and frame an electricity market in the context of demand request. We use blockchain technology to record data derived from power flow calculation model and electricity price customization, and use smart contract to store transaction data and transfer assets automatically. Firstly, we establish a power flow calculation for microgrid operation system of 34 node master-slave control island, and the power flow is calculated and an optimal generator work adjustment is used. Then, according to the price customization, the participation mode of priced demand response is acquired. The presented scenario includes that a power management system and a generator which can actively adjust the power generation trading with each other over a blockchain. According to flow calculation and price customization, power management system generate smart contracts automatically. The final is that two sides complete the transaction and the load state of grid has been adjusted. This work contributes a proof-of-concept implementation of the scenario. This example verifies the feasibility of the method.