Distributed Transactive Energy Management in Microgrids based on Blockchain

While the Internet of Energy (IoE) introduced advanced collaborative management methods through real-time monitoring and demand response programs, smart grids still
grapple with challenges related to central governance, ineffective information aggregation,
and privacy issues. These problems create significant hurdles in smart grid management, particularly with the high penetration of distributed energy resources (DERs). In this paper, we
propose a Distributed Energy Trading Management (DETM) framework that combines a
blockchain-based peer-to-peer (P2P) energy trading system and an optimal power allocation
model, ensuring grid stability. DETM focuses on the optimal power flow (OPF) problem
for the day-ahead scheduling of dispatchable generators and DERs, taking into account the
physical grid constraints. Moreover, the distribution network model interfaces with a prototyped blockchain platform, built using Ethereum Blockchain, to match supply and demand
orders via smart contracts and to record transactions. DETM enables secure, transparent,
and decentralized energy trading, thus overcoming the challenges of central governance and
privacy. The experimental results show that our DETM framework significantly improves
the efficiency of energy management and trading while ensuring the stability and security of
the grid. The integration of blockchain technology with the power allocation model effectively
eliminates information bottlenecks and promotes higher integration of DERs, demonstrating
the substantial potential of DETM for future smart grid management.