Decentralised energy management using blockchain in virtual power plants with batteries to reduce network congestion

This paper presents a blockchain based Virtual Power Plant (VPP) framework aimed at enhancing economic returns and reducing grid reliance for customers equipped with distributed energy resources (DERs). The proposed VPP integrates five distinct participants: three residential users with solar photovoltaic (PV) systems, electric vehicles (EVs), and residential batteries; and two commercial entities comprising a community battery energy storage system (CBESS) and a commercial complex with large-scale solar PV plant. A decentralized energy management system, powered by blockchain smart contracts, is developed to immutably store energy data and transaction records in a decentralized manner, ensuring data integrity and security. This system ensures transparent and equitable energy trading among participants. Comparative simulations reveal that the VPP model increases participant profits by up to 76% and reduces grid energy consumption by 22% with peak import reduction by 38%. Based on an Australian case study, the proposed approach demonstrates practical viability for VPP operators and offers promising potential for integration with distribution networks.