Peer-to-Peer Energy Trading in a Self-Sustained Microgrid System Using Blockchain Technology

Abstract

The power distribution sector has transformed from passive to active and smart networks with the incorporation of a new technological evolution like IoTs, digital technology like machine learning, AI, Blockchain Technology, etc. This transformation has brought the concept of the microgrid in the distribution side where consumers or prosumers (consumers having active energy sources like PV solar, wind energy, etc.) can interact directly with the generation-side (main grid or prosumers). Microgrid with smart meters, IoTs enabled technology can form a new trading environment i.e., Peer-to-Peer (P2P) energy trading, unlike the traditional grid feed-in trading system. The P2P trading provides a community microgrid system towards a selfsustained and self-reliant in meeting their energy demand in which RES owners, prosumers, and consumers play an important role in achieving microgrid net demand-generation balance. Smart contract in blockchain helps the microgrid network to manage energy trading in an efficient, fast, easy implementation in a secure and automated manner for P2P energy trading. Microgrid Energy Management System (MEMS) manages the whole network to see the technical parameters violation check and opens the trading market through the Smart Contract in the blockchain as Network Administrator to facilitate the user’s friendly trading environment and works as an entity of the Distribution System Operator (DSO). Step by step procedure for implementing this concept has been explained and justifies the suitability of using blockchain technology to achieve net demand-generation balance, saving in cost, green energy towards an approach for the self-sustained microgrid system.