Smart Contracts-Based Demand Response Bidding Mechanism to Enhance the Load Aggregator Model in Thailand

In 2022, Thailand’s Demand Response (DR) business model was shifting from the Traditional Utility (TU) model to the Load Aggregator (LA) model in accordance with Thailand’s smart grid master plan. This research studied the current demand response model and mechanism to draw possible gaps in operations. This research deals with the data system owned by the individual load aggregator. The load aggregators collect meter data and evaluate demand adaptations before sending the results to claim compensation on behalf of their customers. This approach lacks transparency and facilitates distortion of the facts. Hence, this research introduces the data execution by smart contracts and data records on the blockchain that enhance transparent data sharing among multiple parties and maintain data integrity. Moreover, the proposed bidding algorithm allows customers to offer an expected price under the maximum incentive payment determined by the avoided costs of running the peaking power plants. Hence, the bidding helps reflect the DR operation costs on the customer side and control the budget for incentive payments. This study emphasized the smart contracts and decentralized application layer, so the public blockchain is a reasonable network for the test. However, implementation in real cases using the public blockchain requires careful considerations, such as network fees, transaction speeds, and the security of smart contract codes.