Blockchain Based Decentralized Management of Demand Response Programs in Smart Energy Grids

Area of Science:

• Energy Systems Engineering
• Computer Science
• Distributed Systems

Background:

• Energy flexibility markets require transparent and secure mechanisms for managing demand-side resources.
• Distributed Energy Prosumers (DEPs) generate and consume energy, offering flexibility crucial for grid stability.
• Current systems face challenges in data integrity, security, and timely settlement for energy flexibility.

Purpose of the Study:

• To investigate the application of decentralized blockchain mechanisms for energy flexibility.
• To ensure transparent, secure, and reliable energy demand profile adaptations for flexibility markets.
• To facilitate efficient stakeholder collaboration, including Distribution System Operators, retailers, and aggregators.

Main Methods:

• Utilized a blockchain-based distributed ledger to store tamper-proof energy prosumption data from IoT smart meters.
• Implemented self-enforcing smart contracts to define energy flexibility, rewards, penalties, and grid balancing rules.
• Employed consensus-based validation for demand response programs and financial settlements.
• Validated the approach using a prototype on the Ethereum platform with real-world building energy data.

Main Results:

• Demonstrated that blockchain-based distributed demand-side management effectively matches energy demand and production at the smart grid level.
• Achieved high accuracy in following demand response signals.
• Showed a reduction in the amount of energy flexibility required for grid convergence.
• Ensured secure and transparent energy flexibility delivery.

Conclusions:

• Blockchain technology offers a viable solution for decentralized energy flexibility management in smart grids.
• The proposed system enhances transparency, security, and reliability in energy markets.
• Smart contracts and consensus mechanisms streamline demand response validation and financial settlement processes.