Blockchain-Driven Real-Time Incentive Approach for Energy Management System

Abstract

In the current era, the skyrocketing demand for energy necessitates a powerful mechanism to mitigate the supply–demand gap in intelligent energy infrastructure, i.e., the smart grid. To handle this issue, an intelligent and secure energy management system (EMS) could benefit end-consumers participating in the Demand–Response (DR) program. Therefore, in this paper, we proposed a real-time and secure incentive-based EMS for smart grid, i.e., RI-EMS approach using Reinforcement Learning (RL) and blockchain technology. In the RI-EMS approach, we proposed a novel reward mechanism for better convergence of the RL-based model using a Q-learning approach based on the greedy policy that guides the RL-agent for faster convergence. Then, the proposed RI-EMS approach designed a real-time incentive mechanism to minimize energy consumption in peak hours and reduce end-consumers’ energy bills to provide incentives to the end-consumers. Experimental results show that the proposed RI-EMS approach induces end-consumer participation and increases customer profitabilities compared to existing approaches considering the different performance evaluation metrics such as energy consumption for end-consumers, energy consumption reduction, and total cost comparison to end-consumers. Furthermore, blockchain-based results are simulated and analyzed with the help of deployed smart contracts in a Remix Integrated Development Environment (IDE) with the parameters such as transaction efficiency and data storage cost.