This paper proposes a blockchain application for transacting energy and carbon allowance in networked microgrids (MGs). MGs submit trading energy and carbon allowance data to the centralized distribution system operator (DSO) operation, which would optimize the provision of energy and carbon allowance trading among MGs for satisfying power distribution network constraints. The hourly demand response along with onsite MG generation and the DSO’s trading exchanges with ISO are considered among market options to maximize MG payoffs and satisfy distribution network constraints. A cooperative game with externalities is applied to model the market behavior of networked MGs. A two-stage payoff allocation problem is devised to allocate the grand coalition payoff to participating MGs. A solution algorithm is proposed which consists of column-and-constraint generation (C&CG) and Karush-Kuhn-Tucker (KKT) conditions to solve the proposed two-stage market optimization problem with acceptable computational performance. Also, blockchain is applied to provide secure and effective transaction settlements and transparent distribution market operations in the proposed transactive energy and carbon allowance trading strategy. The proposed centralized transactive market is tested on a 4-MG system, the IEEE 33-bus system, and the IEEE 123-bus system. The numerical results show the effectiveness of the proposed method in incentivizing MGs to trade energy and carbon allowance while satisfying the distribution network constraints.

Blockchain for Transacting Energy and Carbon Allowance in Networked Microgrids

The controversies surrounding Bitcoin, one of the most frequently used and advertised cryptocurrency, are focused on identifying its qualities, the advantages and disadvantages of using it and, last but not least, its ability to survive over time and become a viable alternative to the traditional currency, taking into account the effects on the environment of the technology used to extract and trade it. Based on such considerations, this article aims to provide an overview of this cryptocurrency, from the perspective of conducting a systematic review of the literature dedicated to the economic and environmental impact of Bitcoin. Using peer-reviewed articles collected from academic databases, we aimed at synthesizing and critically evaluating the points of view in the scientific literature regarding the doctrinal source of the emergence of Bitcoin, the identity of this cryptocurrency from an economic point of view, following its implications on the economic and social environment. Subsequently, this research offers the opportunity of evaluating the level of knowledge considering the impact of Bitcoin mining process on the environment from the perspective of the energy consumption and CO2 emissions, in order to finally analyze Bitcoin regulation and identify possible solutions to reduce the negative impact on the environment and beyond. The findings suggest that, despite high energy consumption and adverse environmental impact, Bitcoin continues to be an instrument used in the economic environment for a variety of purposes. Moreover, the trend of regulating it in various countries shows that the use of Bitcoin is beginning to gain some legitimacy, despite criticism against this cryptocurrency.

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The Economic and Environmental Impact of Bitcoin

The COVID-19 pandemic and the associated lockdown can be regarded as a forced social experiment, the results of which show how to use energy under specific conditions. During this period, there was a reduction in electricity consumption at the level of the power system, but a different specificity distinguishes the group of household users. The article aims at presenting and analysing the identified issues concerning residential electricity users based on the experience from the COVID-19 pandemic lockdown. Data from energy meters from almost 7000 flats in Warsaw’s housing estates during the lockdown in 2020 and the analogous period before the pandemic were used. The analysis showed that, on average, residential users staying practically the whole day in their flats increased their energy consumption, but without increasing their average daily peak power, smoothing the profile in the morning hours to the level reaching the peak power that had occurred in the analogous period before the lockdown. The peak power of the sections feeding the different numbers of dwellings also remained practically unchanged during the lockdown compared to the pre-pandemic period. The pressure to work and educate remotely should contribute to an increase in the digital competence of society, which may result in an increased interest in new forms of activity and cooperation based on demand-side response and prosumption mechanisms, with digital settlements for energy exchange and services.

Impact of the Lockdown during the COVID-19 Pandemic on Electricity Use by Residential Users

An approach for applying blockchain technology in centralized electricity markets

Energy efficiency and data security of smart grids are one of the major concerns in the context of implementing modern approaches in smart cities. For the intelligent management of energy systems, wireless sensor networks and advanced metering infrastructures have played an essential role in the transformation of traditional cities into smart communities. In this paper, a smart city energy model is proposed in which prosumer communities were built by interconnecting energy self-sufficient households to generate, consume and share clean energy on a decentralized trading platform by integrating blockchain technology with a smart microgrid. The efficiency and stability of the grid network were improved by using several wireless sensor nodes that manage a massive amount of data in the network. However, long communication distances between sensor nodes and the base station can greatly consume the energy of sensors and decrease the network lifespan. Therefore, bio-inspired algorithm approaches were proposed to improve routing by obtaining the shortest path for traversing the entire network and increasing the system performance in terms of the efficient selection of cluster heads, reduced energy consumption, and extended network lifetime. This was carried out by studying the properties and mechanisms of biological systems and applying them in the communication systems in order to obtain the best results for a specific problem. In this comprehensive model, particle swarm optimization and a genetic algorithm are used to search for the optimal solution in any problem space in less processing time.

Alba Valbuena Guerra

Papers

Blockchain technology applications in power distribution systems