Dynamic Pricing for Microgrids Energy Transaction in Blockchain-based Ecosystem

Abstract

Microgrid (MG) is an efficient platform to integrate distributed energy resources in distribution networks. The operation of MG is also expected to take advantage of emerging smart grid technologies to improve operation and robustness. Among these emerging technologies, blockchain technology provide a big potential to rule the energy transaction in an innovative way. In this paper, a physical architecture of the ecosystem with MGs is firstly presented. Moreover, as the main parts of the blockchain technology, the operation of distributed ledger and smart contracts are introduced in the transaction process. Considering dynamic pricing scheme in the process of energy transaction in the ecosystem, we model the energy transaction between MGs and distribution system operator (DSO) to decide the trading amount and price of the energy. The welfare maximization mathematical model is established accordingly, and the formulated dual problem will be used to find the shadow price of selling renewable energy to grid and real-time retailer price from DSO. Finally, with the deployment of distribution ledger, the energy transaction process can be fully recorded, and transaction execution can be achieved with the help of smart contracts. In light of the mentioned perspective, beside demonstrated benefit brought to both MGs and DSO, the energy transaction and management based on the blockchain will result in higher reliability and improved auditability in the ecosystem.