Blockchain for Transactive Energy Management of Distributed Energy Resources in Smart Grid

Abstract

This work presents the design and implementation of a blockchain system that enables the trustable transactive energy management for distributed energy resources (DERs). We model the interactions among DERs, including energy trading and flexible appliance scheduling, as a cost minimization problem. Considering the dispersed nature and diverse ownership of DERs, we develop a distributed algorithm to solve the optimization problem using the alternating direction method of multipliers (ADMM) method. Furthermore, we develop a blockchain system, on which we implement the proposed algorithm with the smart contract, to guarantee the transparency and correctness of the energy management. We prototype the blockchain in a small-scale test network and evaluate it through experiments using real-world data. The experimental results validate the feasibility and effectiveness of our design.