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) Process of blockchain energy trading platform
4) The benefits of using blockchain for energy trading
5) McAfee’s double auction model
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

(BACKUP)

HOUSE 2 HOUSE 2
Challenges of P2P Energy Trading[1][3][4]

1) High Transaction Costs

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
 Conclusion

Theoritically, Blockchain technology has the potential to change how we get

energy in the future. However, it is still early days, and there is a lot that needs to
happen before it can be used widely. Technological advancements, laws, and
regulations will all play a role in shaping how blockchain technology is used in the
energy sector. But it is likely that it will lead to new and innovative business
models in many different industries.
The adoption of blockchain technology in energy trading is still in its early stages,
but there are promising signs of growth and interest from industry stakeholders
 References
[1] W. Tushar, T. K. Saha, C. Yuen, D. Smith and H. V. Poor, "Peer-to-Peer Trading in Electricity Networks: An Overview," in IEEE Transactions
on Smart Grid, vol. 11, no. 4, pp. 3185-3200, July 2020, https://doi.org/10.1109/TSG.2020.2969657.
[2] A. Paudel, K. Chaudhari, C. Long and H. B. Gooi, "Peer-to-Peer Energy Trading in a Prosumer-Based Community Microgrid: A Game-
Theoretic Model," in IEEE Transactions on Industrial Electronics, vol. 66, no. 8, pp. 6087-6097, Aug. 2019,
dhttps://doi.org/10.1109/TIE.2018.2874578.
[3] Li H, Xiao F, Yin L and Wu F (2021) Application of Blockchain Technology in Energy Trading: A Review. Front. Energy Res. 9:671133, vol. 9 -
2021, https://doi.org/10.3389/fenrg.2021.671133.
[4]Merlinda Andoni, Valentin Robu, David Flynn, Simone Abram, Dale Geach, David Jenkins, Peter McCallum, Andrew Peacock.Blockchain
technology in the energy sector: A systematic review of challenges and opportunities.2018, https://doi.org/10.1016/j.rser.2018.10.014
[5] Baig MJA, Iqbal MT, Jamil M, Khan J. Blockchain-Based Peer-to-Peer Energy Trading System Using Open-Source Angular Framework and
Hypertext Transfer Protocol. Electronics. 2023; 12(2):287. https://doi.org/10.3390/electronics12020287
[6] S. Thakur and J. G. Breslin, "Real-time Peer to Peer Energy Trade with Blockchain Offline Channels," 2020 IEEE International Conference
on Power Systems Technology (POWERCON), Bangalore, India, 2020, pp. 1-6, doi: 10.1109/POWERCON48463.2020.9230545.
[7] R. Preston McAfee, "A dominant strategy double auction," Journal of Economic Theory, Vol. 56, no. 2, 1992, pp. 434-450,
https://doi.org/10.1016/0022-0531(92)90091-U.
[8]Tonghe Wang, Haochen Hua, Zhiqian Wei, Junwei Cao, "Challenges of blockchain in new generation energy systems and future outlooks",
International Journal of Electrical Power & Energy Systems, Vol. 135, 2022, https://doi.org/10.1016/j.ijepes.2021.107499.
[9] Wang, Naiyu, Xiao Zhou, Xin Lu, Zhitao Guan, Longfei Wu, Xiaojiang Du, and Mohsen Guizani, "When Energy Trading Meets Blockchain in
Electrical Power System: The State of the Art" Applied Sciences 9, no. 8, 2019. https://doi.org/10.3390/app9081561
THANK
YOU