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

Liaqat Ali (), M. Imran Azim, Nabin B. Ojha, Jan Peters, Vivek Bhandari, Anand Menon, Vinod Tiwari, Jemma Green and S.M. Muyeen ()
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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