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Blockchain-enabled Energy Trading and Battery-based Sharing in Microgrids

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arXiv:2404.16462v1 Announce Type: new
Abstract: Carbon footprint reduction can be achieved through various methods, including the adoption of renewable energy sources. The installation of such sources, like photovoltaic panels, while environmentally beneficial, is cost-prohibitive for many. Those lacking photovoltaic solutions typically resort to purchasing energy from utility grids that often rely on fossil fuels. Moreover, when users produce their own energy, they may generate excess that goes unused, leading to inefficiencies. To address these challenges, this paper proposes innovative blockchain-enabled energy-sharing algorithms that allow consumers -- without financial means -- to access energy through the use of their own energy storage units. We explore two sharing models: a centralized method and a peer-to-peer (P2P) one. Our analysis reveals that the P2P model is more effective, enhancing the sharing process significantly compared to the centralized method. We also demonstrate that, when contrasted with traditional battery-supported trading algorithm, the P2P sharing algorithm substantially reduces wasted energy and energy purchases from the grid by 73.6%, and 12.3% respectively. The proposed system utilizes smart contracts to decentralize its structure, address the single point of failure concern, improve overall system transparency, and facilitate peer-to-peer payments.

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