Aggregation and remuneration in Demand-Response with a blockchain-based framework

Abstract

This paper describes the possibility to use the blockchain technology for load and generation aggregation in a new distributed Demand Response (DR) service and customers remuneration system. The blockchain technology and the use of smart contracts for DR allow the creation of a distributed system in which customers can communicate directly, in a transparent, secure and traceable way, with the grid operator to provide their flexibility. In this paper, the DR problem formulation takes into account several aspects, which are periodically executed. First, the blockchain records customers’ energy consumption or production, then, the smart contract starts calculating the baseline and the potential support provided by each customer to fulfil the requested load adaptation. Customers’ availability for generation and load profile modulation is also taken into account, as well as their privacy and an updated definition of the roles of grid and market operators in a new Demand-Response scenario supported by the blockchain technology. The blockchain used is Hyperledger Fabric, since it turned to be flexible for smart contracts implementation while supporting multi-tenancy. Results show the possibility to successfully apply the blockchain technology to this particular topic, even considering privacy-preserving issues.