Blockchain-Based Decentralized Peer-to-Peer Negawatt Trading in Demand-Side Flexibility Driven Transactive Energy System

Arshyn Zhanbolatov, Svetlana Zhakiyeva, Nurkhat K. Zhakiyev, Korhan Kayisli

Abstract


Growing flexibility from demand-side resources and advancements in distributed ledger technology has opened a wide array of opportunities for peer-to-peer negawatt trading. However, while peer-to-peer energy trading has been extensively studied in the research community, peer-to-peer negawatt trading is only yet being explored. This work presents a conceptual design of a blockchain-based decentralized peer-to-peer negawatt trading platform. It includes an auction mechanism where the winner determination problem is formulated as a fractional knapsack problem, and a greedy algorithm is used to find the optimal solution that minimizes social cost. Furthermore, truthfulness and individual rationality are ensured by applying Vickrey–Clarke–Groves payment scheme. A simulation setup is implemented on the Ethereum blockchain to model the peerto-peer negawatt trading in a demand-side flexibility-driven transactive energy system. Case studies show that the proposed market mechanism achieves better economic efficiency compared to the existing method.


Keywords


Transactive Energy System, Demand-Side Flexibility, Peer-to-Peer Negawatt Trading, Blockchain-Based Decentralized Application, Vickrey–Clarke–Groves Auction

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References


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DOI (PDF): https://doi.org/10.20508/ijrer.v12i3.13195.g8530

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