Toward blockchain-based renewable energy microgrid design considering default risk and demand uncertainty

Yu-Chung Tsao and Vo-Van Thanh

Renewable Energy, 2021, vol. 163, issue C, 870-881

Abstract: Renewable energy is a promising solution for addressing social and environmental issues related to the rapidly rising electric power consumption of manufacturers. Recently, a number of policies have been proposed by governments to stimulate the use of renewable energy by manufacturers. Financial incentives are considered as an efficient lever to increase the penetration of renewable energy. This study solves a blockchain-based renewable energy microgrid design problem, where the bank finances a loan to the power company to establish renewable generation units and the power company also offers a credit period for manufacturers to stimulate demand. Blockchain technology can be applied to mitigate default risk. The objective is to determine the number and location of renewable generation units, energy price in the time-of-use scheme, credit time to manufacturers, and blockchain implementation effort while maximizing the expected network profit. A solution method based on robust type-2 fuzzy programming was developed to solve the described problem. The application of the proposed approach was examined using an empirical case study. The results show that uncertain demand and default risk have a strong effect on the solution, and the total profit of the renewable energy microgrid is improved by approximately 1.73% using the proposed approach.

Keywords: Renewable energy; Blockchain; Bank credit; Default risk; Robust optimization; Type-2 fuzzy (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:163:y:2021:i:c:p:870-881

DOI: 10.1016/j.renene.2020.09.016

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