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Blockchain Based Sustainable Local Energy Trading Considering Home Energy Management and Demurrage Mechanism

Author

Listed:
  • Adamu Sani Yahaya

    (Department of Computer Science, COMSATS University Islamabad, Islamabad 44000, Pakistan)

  • Nadeem Javaid

    (Department of Computer Science, COMSATS University Islamabad, Islamabad 44000, Pakistan)

  • Fahad A. Alzahrani

    (Computer Engineering Department, Umm AlQura University, Mecca 24381, Saudi Arabia)

  • Amjad Rehman

    (Artificial Intelligence & Data Analytics Lab (AIDA), CCIS Prince Sultan University, Riyadh 11586, Saudia Arabia)

  • Ibrar Ullah

    (Department of Electrical Engineering, University of Engineering and Technology Peshawar, Bannu 28100, Pakistan)

  • Affaf Shahid

    (Department of Computer Science, COMSATS University Islamabad, Islamabad 44000, Pakistan)

  • Muhammad Shafiq

    (Department of Information and Communication Engineering, Yeungnam University, Gyeongsan 38541, Korea)

Abstract

With the increase in local energy generation from Renewable Energy Sources (RESs), the concept of decentralized peer-to-peer Local Energy Market (LEM) is becoming popular. In this paper, a blockchain-based LEM is investigated, where consumers and prosumers in a small community trade energy without the need for a third party. In the proposed model, a Home Energy Management (HEM) system and demurrage mechanism are introduced, which allow both the prosumers and consumers to optimize their energy consumption and to minimize electricity costs. This method also allows end-users to shift their load to off-peak hours and to use cheap energy from the LEM. The proposed solution shows how energy consumption and electricity cost are optimized using HEM and demurrage mechanism. It also provides economic benefits at both the community and end-user levels and provides sufficient energy to the LEM. The simulation results show that electricity cost is reduced up to 44.73% and 28.55% when the scheduling algorithm is applied using the Critical Peak Price (CPP) and Real-Time Price (RTP) schemes, respectively. Similarly, 65.15% and 35.09% of costs are reduced when CPP and RTP are applied with demurrage mechanism. Moreover, 51.80% and 44.37% electricity costs reduction is observed when CPP and RTP are used with both demurrage and scheduling algorithm. We also carried out security vulnerability analysis to ensure that our energy trading smart contract is secure and bug-free against the common vulnerabilities and attacks.

Suggested Citation

  • Adamu Sani Yahaya & Nadeem Javaid & Fahad A. Alzahrani & Amjad Rehman & Ibrar Ullah & Affaf Shahid & Muhammad Shafiq, 2020. "Blockchain Based Sustainable Local Energy Trading Considering Home Energy Management and Demurrage Mechanism," Sustainability, MDPI, vol. 12(8), pages 1-28, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:8:p:3385-:d:348488
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    References listed on IDEAS

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    17. Marco Vittorio Ecclesia & João Santos & Paul E. Brockway & Tiago Domingos, 2022. "A Comprehensive Societal Energy Return on Investment Study of Portugal Reveals a Low but Stable Value," Energies, MDPI, vol. 15(10), pages 1-22, May.
    18. Muhammad Umar Javed & Nadeem Javaid & Abdulaziz Aldegheishem & Nabil Alrajeh & Muhammad Tahir & Muhammad Ramzan, 2020. "Scheduling Charging of Electric Vehicles in a Secured Manner by Emphasizing Cost Minimization Using Blockchain Technology and IPFS," Sustainability, MDPI, vol. 12(12), pages 1-37, June.
    19. Adisorn Leelasantitham & Thammavich Wongsamerchue & Yod Sukamongkol, 2024. "Economic Pricing in Peer-to-Peer Electrical Trading for a Sustainable Electricity Supply Chain Industry in Thailand," Energies, MDPI, vol. 17(5), pages 1-19, March.
    20. Luis Gomes & Hugo Morais & Calvin Gonçalves & Eduardo Gomes & Lucas Pereira & Zita Vale, 2022. "Impact of Forecasting Models Errors in a Peer-to-Peer Energy Sharing Market," Energies, MDPI, vol. 15(10), pages 1-18, May.
    21. Manuel Casquiço & Bruno Mataloto & Joao C. Ferreira & Vitor Monteiro & Joao L. Afonso & Jose A. Afonso, 2021. "Blockchain and Internet of Things for Electrical Energy Decentralization: A Review and System Architecture," Energies, MDPI, vol. 14(23), pages 1-26, December.

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