Seminar Presentation

On
Power Energy Trading
Using Blockchain
Submitted To
Submitted By- Dr. Yash Pal
Sanyam Nahta Professor
Roll No. - 11914152 Electrical Engineering Department
B.tech, Electrical Engineering NIT Kurukshetra
Introduction
1) Energy trading and its challanges
2) Introduction to blockchain technology
3) Blockchain Transaction Process
4) The benefits of using blockchain for energy trading
5) Case studies of blockchain-based energy trading
6) Limitations of using blockchain in energy trading system
P2P Power Energy Trading[1][2]
Power Energy trading is a next-generation energy management
technique which includes buying and selling of electricity
between two or more parties( such as utilities, consumers, or
prosumers) by maintaining a dynamic equilibrium in the power
grid between supply and demand

Terms- Prosumers, Consumers, Deficit Energy, Surplus Energy

Conventional Unidirectional Grid

Ref - https://doi.org/10.1016/B978-0-12-803773-7.00011-5 , Figure 2

 NET METER CONCEPT P2P ENERGY TRADING
PV PANEL PV PANEL

HOUSE 1 NET METER DISCOM HOUSE 1 SMART METER DISCOM

HOUSE 2 HOUSE 2
Challenges of P2P Energy Trading[1][3][4]
1) Reducing Cost of Energy
2) Lack of transparency
3) Balancing Local Generation and Demand:
4) Developing Pricing Mechanism
5) Secure Transactions
Introduction to Blockchain Technology[3][5]
Decentralised and secure way of recording transactions and storing data.
It is essentially a distributed ledger that is maintained by a network of nodes, which work together to verify
and record transactions.
Each block in the blockchain contains-
Timestamp,
Hash of the previous block,
List of transactions (Data).
Hash generated by SHA-256 Algorithm
Very difficult to alter the information - makes it secure
High degree of transparency
 Blockchain Transaction Process

Source - https://www.pwc.com/gx/en/industries/assets/pwc-blockchain-opportunity-for-energy-producers-and-consumers.pdf
 Private & Public
Blockchain

Source - https://www.pwc.com/gx/en/industries/assets/pwc-blockchain-opportunity-for-energy-producers-and-consumers.pdf
 P2P Energy Trading
BLOCKCHAIN With Blockchain

1) Enables prosumers to receive instant payment

from renewable energy
- + + - + - 2) Customers can buy cheaper renewable energy
HOUSE 1 HOUSE 2 HOUSE 3
EXPORTS IMPORTS IMPORTS 3) Competitive advantage for innovative retailers
4) Transparent, secure and instant electricity
transactions by Distributed Ledger Technology
5) Better return for excess energy as compared to
supplying it to grid.
6) Allows for more informed usage decisions
PHYSICAL FLOW OF ELECTRICITY
P2P Energy Trading With Blockchain

Source - https://ars.els-cdn.com/content/image/1-s2.0-S1364032118307184-gr5_lrg.jpg
 McAfee’s double auction [6][7]

1) This model is widely used in the energy trade.

2) Seller sets its asking price (minimum price at which it will sell)
3) Buyer sets its reservation price (maximum price that it will pay)
4) The auction mechanism finds a price that satisfies both the seller and the buyer
Sellers prices are arranged in increasing order.
Buyers are arranged in a decreasing order of their seller bids.
Once the sellers and buyers orders are ordered, the aggregated supply and
demand curves are generated that meet at a intersection point.
The intersection point establishes the auction price and the number of seller and
buyers that eventually engage in the market trading process.

The Benefits of Using Blockchain for Energy Trading

1) Increased Transparency
2) Reduced Transaction Costs
3) Improved Data Security
4) Enhanced Efficiency
5) Increased Accessibility

Source - https://ars.els-cdn.com/content/image/1-s2.0-S0142061521007389-gr3_lrg.jpg
Organizations using blockchain technology for energy trading

1) Power Ledger : Successful trials in Australia, the US, and Japan.

2) WePower : Successful trials in Europe and Australia
3) LO3 Energy : New York-based startup
Limitations of using blockchain in energy trading system [8][9]
1) Low throughput and high latency
2) Lack of scalability
3) Security risks
4) Unwanted transparency and defective privacy
5) Lack of regulatory mechanisms
6) Implementation of the physical layer.
7) Environmental challenges

Source - https://ars.els-cdn.com/content/image/1-s2.0-S0142061521007389-gr3_lrg.jpg
 References

[1] Tushar W, Saha TK, Yuen C, Smith D, Poor HV. Peer-to-Peer Trading in Electricity Networks: An Overview. IEEE Trans Smart Grid 2020;11(4):3185–
200. https://doi. org/10.1109/TSG.2020.2969657

[2] Paudel A, Chaudhari K, Long C, Gooi HB. Peer-to-peer energy trading in a prosumer-based community microgrid: A game-theoretic model. IEEE
Trans Ind Electron 2019;66(8):6087–97. https://doi.org/10.1109/TIE.2018.2874578.

[3] https://www.frontiersin.org/articles/10.3389/fenrg.2021.671133/full
[4] https://www.sciencedirect.com/science/article/pii/S1364032118307184
[5] https://www.mdpi.com/2079-9292/12/2/287
[6] Privacy-Preserving Energy Trade using Double Auction in Blockchain Offline Channels
1. [7] McAfee, R.: A dominant strategy double auction. Journal of Economic Theory 56(2), 434–450 (1992).
https://doi.org/https://doi.org/10.1016/0022-0531(92)90091-U, https://www.sciencedirect.com/science/article/pii/002205319290091U
2. [8] https://www.sciencedirect.com/science/article/pii/S0142061521007389
3. [9]
https://www.researchgate.net/publication/332428841_When_Energy_Trading_Meets_Blockchain_in_Electrical_Power_System_The_State_of_the_Art