Volume 16: Low Carbon Cities and Urban Energy Systems: Part V

Integration of Blockchain-Based Peer-To-Peer Energy Markets in Industrial Water-Energy-Network Yun Bin Choh, Wentao Yang, Xiaonan Wang

Abstract

Encouraged by the proliferation of distributed renewable energy systems (DRESs), the concept of blockchain based Peer-to-Peer (P2P) energy markets has been gaining momentum in recent years. This promising concept, which allows consumers and prosumers to trade electrical energy directly on a blockchain network without the need for an intermediary, have proven various benefits such as the increase in energy cost savings, improvements in main grid resiliency and more importantly, decarbonization in the long term. Since wastewater treatment systems are known to consume a significant amount of energy to treat influent wastewater such that the effluent meets national discharge standards, the application of this P2P energy trading concept in this industry could prove beneficial to all involved stakeholders. This paper presents an integration of a hierarchical day-ahead P2P energy trading model to the industrial water-energy-nexus (WEN). The first stage introduces a continuous doublesided (CDA) auction market clearing algorithm with the Vickrey-Clarke-Groves (VCG) pricing mechanism deployed on a blockchain framework. The auction mechanism takes the forecasted energy demand/generation as inputs. The next stage proposes a demand-response energy optimization management system for the involved stakeholders. Simulation results show that a P2P-enabled energy market allows consumers to decrease their daily electricity costs by 3.37% – 5.17% and allows prosumers to increase their daily electricity profits by 54.08% – 56.90%. Furthermore, aggregated load demand during peak hours have been reduced by 11.38%.

Keywords Peer-to-Peer (P2P) energy trading, Demand-response optimization, Blockchain, Auction