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Toward sustainable microgrids with blockchain technology-based peer-to-peer energy trading mechanism: A fuzzy meta-heuristic approach

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  • Tsao, Yu-Chung
  • Thanh, Vo-Van

Abstract

Microgrids with renewable distributed generation units are a promising solution for reducing investment cost and greenhouse gas emissions in the face of rapidly rising energy demand and recent organizational concerns regarding social and environmental issues. However, microgrids closely located to demand areas cannot easily balance power supply and demand owing to the intermittency of renewable energy generation and the barriers to connecting with the main electricity grid. To overcome this problem, this study addresses a sustainable microgrid design problem, where blockchain technology is used for peer-to-peer energy trading in the microgrid. The adoption of the blockchain technology in peer-to-peer energy trading ensures the security and sustainability for participants in the microgrid. It enables the participants to take control of the energy system without the need for a central regulatory authority. The problem entails decisions regarding not only the power flow among entities in the grid and the number, location, and capacity of renewable distributed generation units but also the price mechanism for peer-to-peer trading. A sustainable network microgrid is modeled by considering economic and environmental objectives with social constraints related to maximizing demand satisfaction of consumers. A fuzzy multi-objective programming model is proposed to tackle the variability in the capacity of renewable distributed generation units and demand load. The proposed model is solved by a genetic algorithm. Numerical experiments are conducted to evaluate the feasibility of the proposed model in decision-making regarding microgrid design, the impact of peer-to-peer trading on the total profit of the microgrid, and the applicability of the developed solution approach.

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  • Tsao, Yu-Chung & Thanh, Vo-Van, 2021. "Toward sustainable microgrids with blockchain technology-based peer-to-peer energy trading mechanism: A fuzzy meta-heuristic approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:rensus:v:136:y:2021:i:c:s1364032120307395
    DOI: 10.1016/j.rser.2020.110452
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    3. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
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    6. Younes Zahraoui & Tarmo Korõtko & Argo Rosin & Hannes Agabus, 2023. "Market Mechanisms and Trading in Microgrid Local Electricity Markets: A Comprehensive Review," Energies, MDPI, vol. 16(5), pages 1-52, February.
    7. Liu, Wei & Chau, K.T. & Tian, Xiaoyang & Wang, Hui & Hua, Zhichao, 2023. "Smart wireless power transfer — opportunities and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 180(C).
    8. Spiliopoulos, Nikolas & Sarantakos, Ilias & Nikkhah, Saman & Gkizas, George & Giaouris, Damian & Taylor, Phil & Rajarathnam, Uma & Wade, Neal, 2022. "Peer-to-peer energy trading for improving economic and resilient operation of microgrids," Renewable Energy, Elsevier, vol. 199(C), pages 517-535.
    9. Salla Annala & Lurian Klein & Luisa Matos & Sirpa Repo & Olli Kilkki & Arun Narayanan & Samuli Honkapuro, 2021. "Framework to Facilitate Electricity and Flexibility Trading within, to, and from Local Markets," Energies, MDPI, vol. 14(11), pages 1-20, May.
    10. Yu, Vincent F. & Le, Thi Huynh Anh & Gupta, Jatinder N.D., 2022. "Sustainable microgrid design with multiple demand areas and peer-to-peer energy trading involving seasonal factors and uncertainties," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    11. Yahia Baashar & Gamal Alkawsi & Ammar Ahmed Alkahtani & Wahidah Hashim & Rina Azlin Razali & Sieh Kiong Tiong, 2021. "Toward Blockchain Technology in the Energy Environment," Sustainability, MDPI, vol. 13(16), pages 1-20, August.
    12. Yu, Vincent F. & Le, Thi Huynh Anh & Gupta, Jatinder N.D., 2023. "Sustainable microgrid design with peer-to-peer energy trading involving government subsidies and uncertainties," Renewable Energy, Elsevier, vol. 206(C), pages 658-675.
    13. Seyed Amin Sedgh & Hossein Aghamohammadloo & Hassan Khazaei & Mehdi Mehdinejad & Somayeh Asadi, 2023. "A New Design for the Peer-to-Peer Electricity and Gas Markets Based on Robust Probabilistic Programming," Energies, MDPI, vol. 16(8), pages 1-19, April.
    14. Hahnel, Ulf J.J. & Fell, Michael J., 2022. "Pricing decisions in peer-to-peer and prosumer-centred electricity markets: Experimental analysis in Germany and the United Kingdom," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    15. Yap, Kah Yung & Chin, Hon Huin & Klemeš, Jiří Jaromír, 2023. "Blockchain technology for distributed generation: A review of current development, challenges and future prospect," Renewable and Sustainable Energy Reviews, Elsevier, vol. 175(C).
    16. Yue Wu & Junxiang Li & Jin Gao, 2021. "Real-Time Bidding Model of Cryptocurrency Energy Trading Platform," Energies, MDPI, vol. 14(21), pages 1-14, November.

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