IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i12p4461-d842434.html
   My bibliography  Save this article

Fully Decentralized, Cost-Effective Energy Demand Response Management System with a Smart Contracts-Based Optimal Power Flow Solution for Smart Grids

Author

Listed:
  • Yaçine Merrad

    (IoT & Wireless Communication Protocols Laboratory, Department of Electrical & Computer Engineering, Kulliyyah of Engineering (KOE), International Islamic University Malaysia, Jalan Gombak, Kuala Lumpur 53100, Malaysia)

  • Mohamed Hadi Habaebi

    (IoT & Wireless Communication Protocols Laboratory, Department of Electrical & Computer Engineering, Kulliyyah of Engineering (KOE), International Islamic University Malaysia, Jalan Gombak, Kuala Lumpur 53100, Malaysia)

  • Siti Fauziah Toha

    (Department of Mechatronics, Kulliyyah of Engineering (KOE), International Islamic University Malaysia, Jalan Gombak, Kuala Lumpur 53100, Malaysia)

  • Md. Rafiqul Islam

    (IoT & Wireless Communication Protocols Laboratory, Department of Electrical & Computer Engineering, Kulliyyah of Engineering (KOE), International Islamic University Malaysia, Jalan Gombak, Kuala Lumpur 53100, Malaysia)

  • Teddy Surya Gunawan

    (Department of Electrical & Computer Engineering, Kulliyyah of Engineering (KOE), International Islamic University Malaysia, Jalan Gombak, Kuala Lumpur 53100, Malaysia)

  • Mokhtaria Mesri

    (Department of Electronics, University Amar Télidji of Laghouat, Laghouat 03000, Algeria)

Abstract

Recent advances in control, communication, and management systems, as well as the widespread use of renewable energy sources in homes, have led to the evolution of traditional power grids into smart grids, where passive consumers have become so-called prosumers that feed energy into the grid. On the other hand, the integration of blockchain into the smart grid has enabled the emergence of decentralized peer-to-peer (P2P) energy trading, where prosumers trade their energy as tokenized assets. Even though this new paradigm benefits both distribution grid operators and end users in many ways. Nevertheless, there is a conflict of interest between the two parties, as on the one hand, prosumers want to maximize their profit, while on the other hand, distribution system operators (DSOs) seek an optimal power flow (OPF) operating point. Due to the complexity of formulating and solving OPF problems in the presence of renewable energy sources, researchers have focused on mathematical modeling and effective solution algorithms for such optimization problems. However, the control of power generation according to a defined OPF solution is still based on centralized control and management units owned by the DSO. In this paper, we propose a novel, fully decentralized architecture for an OPF-based demand response management system that uses smart contracts to force generators to comply without the need for a central authority or hardware.

Suggested Citation

  • Yaçine Merrad & Mohamed Hadi Habaebi & Siti Fauziah Toha & Md. Rafiqul Islam & Teddy Surya Gunawan & Mokhtaria Mesri, 2022. "Fully Decentralized, Cost-Effective Energy Demand Response Management System with a Smart Contracts-Based Optimal Power Flow Solution for Smart Grids," Energies, MDPI, vol. 15(12), pages 1-27, June.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:12:p:4461-:d:842434
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/12/4461/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/12/4461/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Esmat, Ayman & de Vos, Martijn & Ghiassi-Farrokhfal, Yashar & Palensky, Peter & Epema, Dick, 2021. "A novel decentralized platform for peer-to-peer energy trading market with blockchain technology," Applied Energy, Elsevier, vol. 282(PA).
    2. Han, Dong & Zhang, Chengzhenghao & Ping, Jian & Yan, Zheng, 2020. "Smart contract architecture for decentralized energy trading and management based on blockchains," Energy, Elsevier, vol. 199(C).
    3. Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    4. Dušan B. Gajić & Veljko B. Petrović & Nebojša Horvat & Dinu Dragan & Aleksandar Stanisavljević & Vladimir Katić & Jelena Popović, 2022. "A Distributed Ledger-Based Automated Marketplace for the Decentralized Trading of Renewable Energy in Smart Grids," Energies, MDPI, vol. 15(6), pages 1-26, March.
    5. Ashfaq Ahmad & Nadeem Javaid & Abdul Mateen & Muhammad Awais & Zahoor Ali Khan, 2019. "Short-Term Load Forecasting in Smart Grids: An Intelligent Modular Approach," Energies, MDPI, vol. 12(1), pages 1-21, January.
    6. Yao Du & Zehua Wang & Victor C. M. Leung, 2021. "Blockchain-Enabled Edge Intelligence for IoT: Background, Emerging Trends and Open Issues," Future Internet, MDPI, vol. 13(2), pages 1-21, February.
    7. Khaled Nusair & Feras Alasali, 2020. "Optimal Power Flow Management System for a Power Network with Stochastic Renewable Energy Resources Using Golden Ratio Optimization Method," Energies, MDPI, vol. 13(14), pages 1-46, July.
    8. Muhammad Riaz & Aamir Hanif & Haris Masood & Muhammad Attique Khan & Kamran Afaq & Byeong-Gwon Kang & Yunyoung Nam, 2021. "An Optimal Power Flow Solution of a System Integrated with Renewable Sources Using a Hybrid Optimizer," Sustainability, MDPI, vol. 13(23), pages 1-12, December.
    9. Zongjie Wang & C. Lindsay Anderson, 2021. "A Progressive Period Optimal Power Flow for Systems with High Penetration of Variable Renewable Energy Sources," Energies, MDPI, vol. 14(10), pages 1-17, May.
    10. Jayachandran, M. & Rao, K. Prasada & Gatla, Ranjith Kumar & Kalaivani, C. & Kalaiarasy, C. & Logasabarirajan, C., 2022. "Operational concerns and solutions in smart electricity distribution systems," Utilities Policy, Elsevier, vol. 74(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vidya Krishnan Mololoth & Saguna Saguna & Christer Åhlund, 2023. "Blockchain and Machine Learning for Future Smart Grids: A Review," Energies, MDPI, vol. 16(1), pages 1-39, January.
    2. Marta Biegańska, 2022. "IoT-Based Decentralized Energy Systems," Energies, MDPI, vol. 15(21), pages 1-20, October.
    3. Amitkumar V. Jha & Bhargav Appasani & Deepak Kumar Gupta & Bharati S. Ainapure & Nicu Bizon, 2023. "A Blockchain-Enabled Approach for Enhancing Synchrophasor Measurement in Smart Grid 3.0," Sustainability, MDPI, vol. 15(19), pages 1-20, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arnob Das & Susmita Datta Peu & Md. Abdul Mannan Akanda & Abu Reza Md. Towfiqul Islam, 2023. "Peer-to-Peer Energy Trading Pricing Mechanisms: Towards a Comprehensive Analysis of Energy and Network Service Pricing (NSP) Mechanisms to Get Sustainable Enviro-Economical Energy Sector," Energies, MDPI, vol. 16(5), pages 1-27, February.
    2. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
    3. Mehdinejad, Mehdi & Shayanfar, Heidarali & Mohammadi-Ivatloo, Behnam, 2022. "Decentralized blockchain-based peer-to-peer energy-backed token trading for active prosumers," Energy, Elsevier, vol. 244(PA).
    4. Adisorn Leelasantitham & Thammavich Wongsamerchue & Yod Sukamongkol, 2024. "Economic Pricing in Peer-to-Peer Electrical Trading for a Sustainable Electricity Supply Chain Industry in Thailand," Energies, MDPI, vol. 17(5), pages 1-19, March.
    5. Uyikumhe Damisa & Nnamdi I. Nwulu & Pierluigi Siano, 2022. "Towards Blockchain-Based Energy Trading: A Smart Contract Implementation of Energy Double Auction and Spinning Reserve Trading," Energies, MDPI, vol. 15(11), pages 1-16, June.
    6. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    7. Lei, Yu-Tian & Ma, Chao-Qun & Mirza, Nawazish & Ren, Yi-Shuai & Narayan, Seema Wati & Chen, Xun-Qi, 2022. "A renewable energy microgrids trading management platform based on permissioned blockchain," Energy Economics, Elsevier, vol. 115(C).
    8. Huang, Chung-Ting & Scott, Ian J., 2024. "Peer-to-peer multi-period energy market with flexible scheduling on a scalable and cost-effective blockchain," Applied Energy, Elsevier, vol. 367(C).
    9. Shan Shan & Siliang Yang & Victor Becerra & Jiamei Deng & Honglei Li, 2023. "A Case Study of Existing Peer-to-Peer Energy Trading Platforms: Calling for Integrated Platform Features," Sustainability, MDPI, vol. 15(23), pages 1-22, November.
    10. Feras Alasali & Mohammad Salameh & Ali Semrin & Khaled Nusair & Naser El-Naily & William Holderbaum, 2022. "Optimal Controllers and Configurations of 100% PV and Energy Storage Systems for a Microgrid: The Case Study of a Small Town in Jordan," Sustainability, MDPI, vol. 14(13), pages 1-20, July.
    11. Lyu, Cheng & Jia, Youwei & Xu, Zhao, 2021. "Fully decentralized peer-to-peer energy sharing framework for smart buildings with local battery system and aggregated electric vehicles," Applied Energy, Elsevier, vol. 299(C).
    12. Saima Akhtar & Sulman Shahzad & Asad Zaheer & Hafiz Sami Ullah & Heybet Kilic & Radomir Gono & Michał Jasiński & Zbigniew Leonowicz, 2023. "Short-Term Load Forecasting Models: A Review of Challenges, Progress, and the Road Ahead," Energies, MDPI, vol. 16(10), pages 1-29, May.
    13. Yehia Ibrahim Alzoubi & Ahmad Al-Ahmad & Hasan Kahtan & Ashraf Jaradat, 2022. "Internet of Things and Blockchain Integration: Security, Privacy, Technical, and Design Challenges," Future Internet, MDPI, vol. 14(7), pages 1-48, July.
    14. Sepehr Moalem & Roya M. Ahari & Ghazanfar Shahgholian & Majid Moazzami & Seyed Mohammad Kazemi, 2022. "Long-Term Electricity Demand Forecasting in the Steel Complex Micro-Grid Electricity Supply Chain—A Coupled Approach," Energies, MDPI, vol. 15(21), pages 1-17, October.
    15. Zuobin Ying & Wusong Lan & Chen Deng & Lu Liu & Ximeng Liu, 2023. "DVIT—A Decentralized Virtual Items Trading Forum with Reputation System," Mathematics, MDPI, vol. 11(2), pages 1-23, January.
    16. Ernest Barceló & Katarina Dimić-Mišić & Monir Imani & Vesna Spasojević Brkić & Michael Hummel & Patrick Gane, 2023. "Regulatory Paradigm and Challenge for Blockchain Integration of Decentralized Systems: Example—Renewable Energy Grids," Sustainability, MDPI, vol. 15(3), pages 1-27, January.
    17. Alessandro Bosisio & Matteo Moncecchi & Andrea Morotti & Marco Merlo, 2021. "Machine Learning and GIS Approach for Electrical Load Assessment to Increase Distribution Networks Resilience," Energies, MDPI, vol. 14(14), pages 1-23, July.
    18. Byeongtae Ahn, 2022. "Implementation and Early Adoption of an Ethereum-Based Electronic Voting System for the Prevention of Fraudulent Voting," Sustainability, MDPI, vol. 14(5), pages 1-16, March.
    19. Diego Larrahondo & Ricardo Moreno & Harold R. Chamorro & Francisco Gonzalez-Longatt, 2021. "Comparative Performance of Multi-Period ACOPF and Multi-Period DCOPF under High Integration of Wind Power," Energies, MDPI, vol. 14(15), pages 1-15, July.
    20. Tsao, Yu-Chung & Thanh, Vo-Van, 2021. "Toward sustainable microgrids with blockchain technology-based peer-to-peer energy trading mechanism: A fuzzy meta-heuristic approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:12:p:4461-:d:842434. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.