Blockchain based uniform price double auctions for energy markets

Magda Foti and Manolis Vavalis

Applied Energy, 2019, vol. 254, issue C

Abstract: The energy sector is undergoing a massive transformation that greatly affects and is being affected by its market mechanisms. This paper presents the design, the prototype implementation and the analysis of a decentralized, real-time, uniform-price double auction energy market. The proposed market is a distributed and decentralized application and its rules may be specified through a smart contract. Market participants interact with the smart contract sending their asks and offers and the distributed application clears the market based on a uniform-price economic dispatch model. We propose and analyze three different implementation approaches on an Ethereum blockchain network. A model representing a physical demonstration project conducted in Seattle, USA, is utilized to simulate the power grid and to provide real-life scenarios for our analysis. We systematically evaluate our three implementation approaches and elucidate several blockchain issues regarding the decentralization of next-generation energy markets. In particular, we identify that certain computation modules may be installed on smart consuming devices in order to increase efficiency, security and decentralization and reduce the overall blockchain overhead cost. Furthermore, we show that in order to fulfill the market’s high demand for step timing, we ought to have the block generation time several magnitudes smaller compared to the auction period.

Keywords: Blockchain; Distributed ledger technology; Smart grid; Double auction; Energy market (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306261919312784
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:254:y:2019:i:c:s0306261919312784

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2019.113604

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().