A Transactive Energy Microgrid Model using Blockchains

The price of technology used in the production of renewable energy (RE) has come down significantly, and end users' roles have shifted from that of simple energy consumers to that of active participants in the creation of their energy. This new function is known as a prosumer, and it has led to the change in electricity markets by enabling prosumers to resell energy excess to electricity suppliers and other prosumers. As a result, there is a need for a peer-to-peer (P2P) energy trading network that makes use of the Ethereum blockchain and a smart contract mechanism to operate as an interface between prosumers and consumers. This paper develops a microgrid model incorporating Blockchain technology to simulate peer-to-peer energy transactions. In the simulation setup, solar panels are employed as the primary source of electrical energy. In addition, energy storage batteries when the sun sets, complement the energy provided by the solar PV in the simulation developed. Furthermore, an automated bidding system to facilitate energy transactions is implemented. The bidding system consists of a full interface that shows houses supply, demand, batteries, and the bid on the energy. The simulation is carried out for 20 days, with 15 houses connected to the grid. Full transaction simulation resulted in peak prices that were more than 25 percent lower than real-life energy tariff coming from the electric utility company.