IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v12y2019i20p3812-d274509.html
   My bibliography  Save this article

Consortium Blockchain-Based Microgrid Market Transaction Research

Author

Listed:
  • Wenting Zhao

    (School of Economic and Management, Taiyuan University of Technology, Jinzhong 030600, China)

  • Jun Lv

    (College of Computer Science and Technology, Lvliang University, Lvliang 033000, China)

  • Xilong Yao

    (School of Economic and Management, Taiyuan University of Technology, Jinzhong 030600, China)

  • Juanjuan Zhao

    (School of Economic and Management, Taiyuan University of Technology, Jinzhong 030600, China
    School of Information and Computer, Taiyuan University of Technology, Jinzhong 030600, China)

  • Zhixin Jin

    (School of Economic and Management, Taiyuan University of Technology, Jinzhong 030600, China
    Shanxi Coking Coal Group Co. Ltd., Taiyuan 030024, China)

  • Yan Qiang

    (School of Information and Computer, Taiyuan University of Technology, Jinzhong 030600, China)

  • Zheng Che

    (School of Information and Computer, Taiyuan University of Technology, Jinzhong 030600, China)

  • Chunwu Wei

    (School of Information and Computer, Taiyuan University of Technology, Jinzhong 030600, China)

Abstract

The microgrid trading market can effectively solve the problem of in-situ consumption of distributed energy and reduce the impact of distributed generation (DG) on the grid. However, the traditional microgrid trading model has some shortcomings, such as high operation cost and poor security. Therefore, in this paper, a microgrid market trading model was developed using consortium blockchain technology and Nash game equilibrium theory. Firstly, blockchain container is used to authenticate the users who want to participate in the transaction. Then, the pricing system collects and integrates transaction requests submitted by users, then formulates transaction pricing strategy of microgrid using Nash equilibrium theory. Finally, the price, trading volume, and user information are submitted to the blockchain container for transaction matching to achieve the transaction. After the transaction is completed, its related information is recorded in the hyperledger and the dispatch system is called. The scene simulation was implemented on Fabric 1.1 platform and the results analyzed. Results show that the trading model proposed in this paper greatly reduces the cost of electricity purchase and improves the benefits of electricity sales. Besides, the model is far more capable of handling transactions than the models based on Bitcoin and Ethereum.

Suggested Citation

  • Wenting Zhao & Jun Lv & Xilong Yao & Juanjuan Zhao & Zhixin Jin & Yan Qiang & Zheng Che & Chunwu Wei, 2019. "Consortium Blockchain-Based Microgrid Market Transaction Research," Energies, MDPI, vol. 12(20), pages 1-22, October.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:20:p:3812-:d:274509
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/12/20/3812/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/12/20/3812/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jiayi, Huang & Chuanwen, Jiang & Rong, Xu, 2008. "A review on distributed energy resources and MicroGrid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(9), pages 2472-2483, December.
    2. Mengelkamp, Esther & Gärttner, Johannes & Rock, Kerstin & Kessler, Scott & Orsini, Lawrence & Weinhardt, Christof, 2018. "Designing microgrid energy markets," Applied Energy, Elsevier, vol. 210(C), pages 870-880.
    3. Jian Wang & Qianggang Wang & Niancheng Zhou & Yuan Chi, 2017. "A Novel Electricity Transaction Mode of Microgrids Based on Blockchain and Continuous Double Auction," Energies, MDPI, vol. 10(12), pages 1-22, November.
    4. Elisabetta Allevi & Didier Aussel & Rossana Riccardi, 2018. "On an equilibrium problem with complementarity constraints formulation of pay-as-clear electricity market with demand elasticity," Journal of Global Optimization, Springer, vol. 70(2), pages 329-346, February.
    5. Lu, Qing & Lü, Shuaikang & Leng, Yajun, 2019. "A Nash-Stackelberg game approach in regional energy market considering users’ integrated demand response," Energy, Elsevier, vol. 175(C), pages 456-470.
    6. Hanna, Ryan & Ghonima, Mohamed & Kleissl, Jan & Tynan, George & Victor, David G., 2017. "Evaluating business models for microgrids: Interactions of technology and policy," Energy Policy, Elsevier, vol. 103(C), pages 47-61.
    7. Li, Bei & Roche, Robin & Paire, Damien & Miraoui, Abdellatif, 2019. "A price decision approach for multiple multi-energy-supply microgrids considering demand response," Energy, Elsevier, vol. 167(C), pages 117-135.
    8. Cornélusse, Bertrand & Savelli, Iacopo & Paoletti, Simone & Giannitrapani, Antonio & Vicino, Antonio, 2019. "A community microgrid architecture with an internal local market," Applied Energy, Elsevier, vol. 242(C), pages 547-560.
    9. Jianjun Sun & Jiaqi Yan & Kem Z. K. Zhang, 2016. "Blockchain-based sharing services: What blockchain technology can contribute to smart cities," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-9, December.
    10. Noor, Sana & Yang, Wentao & Guo, Miao & van Dam, Koen H. & Wang, Xiaonan, 2018. "Energy Demand Side Management within micro-grid networks enhanced by blockchain," Applied Energy, Elsevier, vol. 228(C), pages 1385-1398.
    11. Joseph T. Howson, Jr. & Robert W. Rosenthal, 1974. "Bayesian Equilibria of Finite Two-Person Games with Incomplete Information," Management Science, INFORMS, vol. 21(3), pages 313-315, November.
    12. Ferruzzi, Gabriella & Cervone, Guido & Delle Monache, Luca & Graditi, Giorgio & Jacobone, Francesca, 2016. "Optimal bidding in a Day-Ahead energy market for Micro Grid under uncertainty in renewable energy production," Energy, Elsevier, vol. 106(C), pages 194-202.
    13. Zixiao Xu & Dechang Yang & Weilin Li, 2019. "Microgrid Group Trading Model and Solving Algorithm Based on Blockchain," Energies, MDPI, vol. 12(7), pages 1-19, April.
    14. Andoni, Merlinda & Robu, Valentin & Flynn, David & Abram, Simone & Geach, Dale & Jenkins, David & McCallum, Peter & Peacock, Andrew, 2019. "Blockchain technology in the energy sector: A systematic review of challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 143-174.
    15. Zia, Muhammad Fahad & Elbouchikhi, Elhoussin & Benbouzid, Mohamed, 2018. "Microgrids energy management systems: A critical review on methods, solutions, and prospects," Applied Energy, Elsevier, vol. 222(C), pages 1033-1055.
    16. Coelho, Vitor N. & Weiss Cohen, Miri & Coelho, Igor M. & Liu, Nian & Guimarães, Frederico Gadelha, 2017. "Multi-agent systems applied for energy systems integration: State-of-the-art applications and trends in microgrids," Applied Energy, Elsevier, vol. 187(C), pages 820-832.
    17. Bertrand Corn'elusse & Iacopo Savelli & Simone Paoletti & Antonio Giannitrapani & Antonio Vicino, 2018. "A Community Microgrid Architecture with an Internal Local Market," Papers 1810.09803, arXiv.org, revised Feb 2019.
    18. Lüth, Alexandra & Zepter, Jan Martin & Crespo del Granado, Pedro & Egging, Ruud, 2018. "Local electricity market designs for peer-to-peer trading: The role of battery flexibility," Applied Energy, Elsevier, vol. 229(C), pages 1233-1243.
    19. Zhang, Chenghua & Wu, Jianzhong & Zhou, Yue & Cheng, Meng & Long, Chao, 2018. "Peer-to-Peer energy trading in a Microgrid," Applied Energy, Elsevier, vol. 220(C), pages 1-12.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Umar, Abdullah & Kumar, Deepak & Ghose, Tirthadip, 2022. "Blockchain-based decentralized energy intra-trading with battery storage flexibility in a community microgrid system," Applied Energy, Elsevier, vol. 322(C).
    2. Liu, Jicheng & Sun, Jiakang & Yuan, Hanying & Su, Yihan & Feng, Shuxian & Lu, Chaoran, 2022. "Behavior analysis of photovoltaic-storage-use value chain game evolution in blockchain environment," Energy, Elsevier, vol. 260(C).
    3. Xiuli Wang & Fang Yao & Fushuan Wen, 2022. "Applications of Blockchain Technology in Modern Power Systems: A Brief Survey," Energies, MDPI, vol. 15(13), pages 1-22, June.
    4. Rodrigues, Stefane Dias & Garcia, Vinicius Jacques, 2023. "Transactive energy in microgrid communities: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    5. Longze Wang & Shucen Jiao & Yu Xie & Saif Mubaarak & Delong Zhang & Jinxin Liu & Siyu Jiang & Yan Zhang & Meicheng Li, 2021. "A Permissioned Blockchain-Based Energy Management System for Renewable Energy Microgrids," Sustainability, MDPI, vol. 13(3), pages 1-19, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rodrigues, Stefane Dias & Garcia, Vinicius Jacques, 2023. "Transactive energy in microgrid communities: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    2. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    3. Rodrigues, Daniel L. & Ye, Xianming & Xia, Xiaohua & Zhu, Bing, 2020. "Battery energy storage sizing optimisation for different ownership structures in a peer-to-peer energy sharing community," Applied Energy, Elsevier, vol. 262(C).
    4. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    5. Antoine Boche & Clément Foucher & Luiz Fernando Lavado Villa, 2022. "Understanding Microgrid Sustainability: A Systemic and Comprehensive Review," Energies, MDPI, vol. 15(8), pages 1-29, April.
    6. Àlex Alonso & Jordi de la Hoz & Helena Martín & Sergio Coronas & José Matas, 2021. "Individual vs. Community: Economic Assessment of Energy Management Systems under Different Regulatory Frameworks," Energies, MDPI, vol. 14(3), pages 1-27, January.
    7. Davarzani, Sima & Pisica, Ioana & Taylor, Gareth A. & Munisami, Kevin J., 2021. "Residential Demand Response Strategies and Applications in Active Distribution Network Management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    8. Esmat, Ayman & de Vos, Martijn & Ghiassi-Farrokhfal, Yashar & Palensky, Peter & Epema, Dick, 2021. "A novel decentralized platform for peer-to-peer energy trading market with blockchain technology," Applied Energy, Elsevier, vol. 282(PA).
    9. Seyedhossein, Seyed Saeed & Moeini-Aghtaie, Moein, 2022. "Risk management framework of peer-to-peer electricity markets," Energy, Elsevier, vol. 261(PB).
    10. Bogdan-Constantin Neagu & Ovidiu Ivanov & Gheorghe Grigoras & Mihai Gavrilas & Dumitru-Marcel Istrate, 2020. "New Market Model with Social and Commercial Tiers for Improved Prosumer Trading in Microgrids," Sustainability, MDPI, vol. 12(18), pages 1-43, September.
    11. Wang, Longze & Liu, Jinxin & Yuan, Rongfang & Wu, Jing & Zhang, Delong & Zhang, Yan & Li, Meicheng, 2020. "Adaptive bidding strategy for real-time energy management in multi-energy market enhanced by blockchain," Applied Energy, Elsevier, vol. 279(C).
    12. van Leeuwen, Gijs & AlSkaif, Tarek & Gibescu, Madeleine & van Sark, Wilfried, 2020. "An integrated blockchain-based energy management platform with bilateral trading for microgrid communities," Applied Energy, Elsevier, vol. 263(C).
    13. 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.
    14. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
    15. Ableitner, Liliane & Tiefenbeck, Verena & Meeuw, Arne & Wörner, Anselma & Fleisch, Elgar & Wortmann, Felix, 2020. "User behavior in a real-world peer-to-peer electricity market," Applied Energy, Elsevier, vol. 270(C).
    16. Kobashi, Takuro & Yoshida, Takahiro & Yamagata, Yoshiki & Naito, Katsuhiko & Pfenninger, Stefan & Say, Kelvin & Takeda, Yasuhiro & Ahl, Amanda & Yarime, Masaru & Hara, Keishiro, 2020. "On the potential of “Photovoltaics + Electric vehicles” for deep decarbonization of Kyoto’s power systems: Techno-economic-social considerations," Applied Energy, Elsevier, vol. 275(C).
    17. Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    18. Zhou, Yue & Wu, Jianzhong & Song, Guanyu & Long, Chao, 2020. "Framework design and optimal bidding strategy for ancillary service provision from a peer-to-peer energy trading community," Applied Energy, Elsevier, vol. 278(C).
    19. Guerrero, Jaysson & Gebbran, Daniel & Mhanna, Sleiman & Chapman, Archie C. & Verbič, Gregor, 2020. "Towards a transactive energy system for integration of distributed energy resources: Home energy management, distributed optimal power flow, and peer-to-peer energy trading," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    20. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:12:y:2019:i:20:p:3812-:d:274509. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.