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Fully Decentralized, Cost-Effective Energy Demand Response Management System with a Smart Contracts-Based Optimal Power Flow Solution for Smart Grids

Author

Listed:
  • Yaçine Merrad

    (IoT & Wireless Communication Protocols Laboratory, Department of Electrical & Computer Engineering, Kulliyyah of Engineering (KOE), International Islamic University Malaysia, Jalan Gombak, Kuala Lumpur 53100, Malaysia)

  • Mohamed Hadi Habaebi

    (IoT & Wireless Communication Protocols Laboratory, Department of Electrical & Computer Engineering, Kulliyyah of Engineering (KOE), International Islamic University Malaysia, Jalan Gombak, Kuala Lumpur 53100, Malaysia)

  • Siti Fauziah Toha

    (Department of Mechatronics, Kulliyyah of Engineering (KOE), International Islamic University Malaysia, Jalan Gombak, Kuala Lumpur 53100, Malaysia)

  • Md. Rafiqul Islam

    (IoT & Wireless Communication Protocols Laboratory, Department of Electrical & Computer Engineering, Kulliyyah of Engineering (KOE), International Islamic University Malaysia, Jalan Gombak, Kuala Lumpur 53100, Malaysia)

  • Teddy Surya Gunawan

    (Department of Electrical & Computer Engineering, Kulliyyah of Engineering (KOE), International Islamic University Malaysia, Jalan Gombak, Kuala Lumpur 53100, Malaysia)

  • Mokhtaria Mesri

    (Department of Electronics, University Amar Télidji of Laghouat, Laghouat 03000, Algeria)

Abstract

Recent advances in control, communication, and management systems, as well as the widespread use of renewable energy sources in homes, have led to the evolution of traditional power grids into smart grids, where passive consumers have become so-called prosumers that feed energy into the grid. On the other hand, the integration of blockchain into the smart grid has enabled the emergence of decentralized peer-to-peer (P2P) energy trading, where prosumers trade their energy as tokenized assets. Even though this new paradigm benefits both distribution grid operators and end users in many ways. Nevertheless, there is a conflict of interest between the two parties, as on the one hand, prosumers want to maximize their profit, while on the other hand, distribution system operators (DSOs) seek an optimal power flow (OPF) operating point. Due to the complexity of formulating and solving OPF problems in the presence of renewable energy sources, researchers have focused on mathematical modeling and effective solution algorithms for such optimization problems. However, the control of power generation according to a defined OPF solution is still based on centralized control and management units owned by the DSO. In this paper, we propose a novel, fully decentralized architecture for an OPF-based demand response management system that uses smart contracts to force generators to comply without the need for a central authority or hardware.

Suggested Citation

  • Yaçine Merrad & Mohamed Hadi Habaebi & Siti Fauziah Toha & Md. Rafiqul Islam & Teddy Surya Gunawan & Mokhtaria Mesri, 2022. "Fully Decentralized, Cost-Effective Energy Demand Response Management System with a Smart Contracts-Based Optimal Power Flow Solution for Smart Grids," Energies, MDPI, vol. 15(12), pages 1-27, June.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:12:p:4461-:d:842434
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    References listed on IDEAS

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    Cited by:

    1. Amitkumar V. Jha & Bhargav Appasani & Deepak Kumar Gupta & Bharati S. Ainapure & Nicu Bizon, 2023. "A Blockchain-Enabled Approach for Enhancing Synchrophasor Measurement in Smart Grid 3.0," Sustainability, MDPI, vol. 15(19), pages 1-20, October.
    2. Ali Muqtadir & Bin Li & Bing Qi & Leyi Ge & Nianjiang Du & Chen Lin, 2025. "Demand Response Potential Forecasting: A Systematic Review of Methods, Challenges, and Future Directions," Energies, MDPI, vol. 18(19), pages 1-37, October.
    3. Vidya Krishnan Mololoth & Saguna Saguna & Christer Åhlund, 2023. "Blockchain and Machine Learning for Future Smart Grids: A Review," Energies, MDPI, vol. 16(1), pages 1-39, January.
    4. Delardas, Orestis, 2025. "Transforming marginal-cost pricing: A blockchain approach to fundamental energy system dynamics," Utilities Policy, Elsevier, vol. 95(C).
    5. Marta Biegańska, 2022. "IoT-Based Decentralized Energy Systems," Energies, MDPI, vol. 15(21), pages 1-20, October.

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