A blockchain platform for Demand Response in Mediterranean islands: a smart contract for remuneration

Abstract

The Blorin project started at the end of 2019 to support the implementation of a blockchain platform to support the energy services provision from end users by means of Demand Response and Vehicle to Grid programs. The experimental part of the project is being carried out on two Mediterranean islands and inside the University campus in Palermo. Customized smart contracts have been designed to support the active participation of end users to regulation services for the two weak electrical grids of the islands in the view of a deep penetration of renewable energy in the two energy systems. In particular, the smart contract for remuneration accounts for the very special energy situation of islands where TSO, DSO, energy seller and aggregator collapse in a unique market actor. Moreover, in islands the electricity provision is typically still relying on diesel generators thus strongly connecting the Demand Response programs benefit to the reduction of fuel consumption, as an effect of increased efficiency of diesel generators. Due to the critical international situation and to the climate crisis, fossil fuels get more and more costly, thus a speed up of the energy transition in small islands is highly needed. This paper addresses the problem of designing a customized smart contract for remuneration of Demand Response service provision in small islands.