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Balancing Usage Profiles and Benefitting End Users through Blockchain Based Local Energy Trading: A German Case Study

Liaqat Ali (la@powerledger.io), M. Imran Azim, Nabin B. Ojha, Jan Peters, Vivek Bhandari, Anand Menon, Vinod Tiwari, Jemma Green and S.M. Muyeen (sm.muyeen@qu.edu.qa)
Additional contact information
Liaqat Ali: Powerledger, Level 2, The Palace, 108 St George’s Terrace, Perth, WA-6000, Australia
M. Imran Azim: Powerledger, Level 2, The Palace, 108 St George’s Terrace, Perth, WA-6000, Australia
Nabin B. Ojha: Powerledger, Level 2, The Palace, 108 St George’s Terrace, Perth, WA-6000, Australia
Jan Peters: Powerledger, Level 2, The Palace, 108 St George’s Terrace, Perth, WA-6000, Australia
Vivek Bhandari: Powerledger, Level 2, The Palace, 108 St George’s Terrace, Perth, WA-6000, Australia
Anand Menon: Powerledger, Level 2, The Palace, 108 St George’s Terrace, Perth, WA-6000, Australia
Vinod Tiwari: Powerledger, Level 2, The Palace, 108 St George’s Terrace, Perth, WA-6000, Australia
Jemma Green: Powerledger, Level 2, The Palace, 108 St George’s Terrace, Perth, WA-6000, Australia
S.M. Muyeen: Department of Electrical Engineering, Qatar University, Doha 2713, Qatar

Energies, 2023, vol. 16, issue 17, 1-18

Abstract: The electricity market has increasingly played a significant role in ensuring the smooth operation of the power grid. The latest incarnation of the electricity market follows a bottom-up paradigm, rather than a top-down one, and aims to provide flexibility services to the power grid. The blockchain-based local energy market (LEM) is one such bottom-up market paradigm. It essentially enables consumers and prosumers (those who can generate power locally) within a defined power network topology to trade renewable energy amongst each other in a peer-to-peer (P2P) fashion using blockchain technology. This paper presents the development of such a P2P trading-facilitated LEM and the analysis of the proposed blockchain-based LEM by means of a case study using actual German residential customer data. The performance of the proposed LEM is also compared with that of BAU, in which power is traded via time-of-use (ToU) and feed-in-tariff (FiT) rates. The comparative results demonstrate: (1) the participants’ bill savings; (2) mitigation of the power grid’s export and import; (3) no/minimal variations in the margins of energy suppliers and system operators; and (4) cost comparison of Ethereum versus Polygon blockchain, thus emphasising the domineering performance of the developed P2P trading-based LEM mechanism.

Keywords: local energy market; peer-to-peer; blockchain; power grid; energy supplier; system operator; electricity cost reduction (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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