Blockchain for transactive energy management in networked neighborhood microgrids

The proliferation of distributed and renewable energy resources introduces additional operational challenges to power distribution systems. Transactive energy management, which allows networked neighborhood communities and houses to trade energy, is expected to be developed as an effective method for accommodating additional uncertainties and security mandates pertaining to distributed energy resources. This paper proposes and analyzes a two-layer transactive energy market in which houses in networked neighborhood community microgrids will trade energy in respective market layers. This paper studies the blockchain applications to satisfy socioeconomic and technological concerns of secure transactive energy management in a two-level power distribution system. The numerical results for practical networked microgrids located at IliinoisTech-Bronzevilie in Chicago illustrate the validity of the proposed blockchain-based transactive energy management for devising a distributed, scalable, efficient, and cybersecured power grid operation. The conclusion of the paper summarizes the prospects for blockchain applications to transactive energy management in power distribution systems.