Transactive Distribution Grid with Microgrids Using Blockchain Technology for the Energy Internet

Abstract

The changing nature of the energy grid in recent years has prompted key stakeholders to think of ways to address incoming challenges. Transactive energy is an approach that promises to dynamically align active grid elements coming up in the previously inactive consumers' side to achieve a reliable and smarter grid. This work models the distribution grid structure as a combination of microgrids. A blockchain-in-the loop simulation framework is modelled and simulated for a residential microgrid using power system simulators and transactive agents. Blockchain smart contracts are used to coordinate peer-to-peer energy transactions in the microgrid. The model is used to test three market coordination schemes: a simple auction-less scheme, an auction-less scheme with a normalized sorting metric and an hour ahead single auction scheme with penalties for unfulfilled bids. Case studies are presented of a microgrid with 30 homes, at different levels of solar and energy storage penetration within the microgrid, all equipped with responsive and unresponsive appliances and transactive agents for the HVAC systems. The auction-less scheme with a normalized sorting metric is observed to provide a fairer advantage to smaller solar installations in comparison to the simple auction-less method. It is then concluded that the auction-less schemes are most beneficial to users, as they would not need sophisticated forecasting technology to reduce penalties from bid quantity inaccuracies, as long as the energy mix within the microgrid is diverse enough.