Feasibility of Blockchain-Based Energy Trading within Islanded Microgrids in Alexandria, Egypt

Abstract

Recent developments in power system and internet technology introduced blockchain technology to energy trading. In addition, the growing penetration of distributed energy resources made the division of distribution systems into microgrids a tempting solution for technical and economical problems. In this paper, the feasibility of applying blockchain technology as an accounting system for energy trading within each island and between interconnected islands is considered. The distribution system is considered after being optimally divided into islands. Energy hubs, aggregated thermostatically controlled loads and aggregated electric vehicles (EVs) are considered. Optimal demand-side management is applied taking into consideration the uncertainties arising from renewable energy sources due to their nature, load forecasting, energy price due to bidding actions accompanying energy transactions, and energy exchange in EV parking stations due to EV availability patterns. The blockchain-based energy trading (BET) system is considered in three steps. The first step is carried out considering EV parking stations for energy trading between EVs and then between parking stations and island consumers with billing transfer between different blockchains. The second step considers the trading between prosumers and consumers within each island. In the third step, the BET system is applied for energy trading between interconnected islands. The feasibility of the proposed energy trading system is validated using a realistic case of the distribution system of Alexandria, Egypt. The simulation results show the positive impact of applying blockchain-based energy trading on energy cost.