Multi‐stage energy‐risk adjustments using practical Byzantine fault tolerance consensus for blockchain‐powered peer‐to‐peer transactive markets
Abstract The energy risk associated with distributed energy resources is inevitable in peer‐to‐peer (P2P) transactive energy markets owing to mismatches between energy commitments and metered measurements. However, adjusting these possible mismatches by progressive revision of the energy commitments...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2023-08-01
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| Series: | Energy Conversion and Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.1049/enc2.12092 |
| _version_ | 1826978906548207616 |
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| author | Vivek Mohan Vishnu Dhinakaran Mallika Gangadharan Aditya Modekurti Shyam M Jisma M |
| author_facet | Vivek Mohan Vishnu Dhinakaran Mallika Gangadharan Aditya Modekurti Shyam M Jisma M |
| author_sort | Vivek Mohan |
| collection | DOAJ |
| description | Abstract The energy risk associated with distributed energy resources is inevitable in peer‐to‐peer (P2P) transactive energy markets owing to mismatches between energy commitments and metered measurements. However, adjusting these possible mismatches by progressive revision of the energy commitments in the rolling time horizon mitigates the energy risk, and thereby mitigates the financial risk for prosumers. In this study, the conditional value at risk (CVaR) is used to estimate the risk value for each prosumer. The energy offers that are riskier than CVaR‐based threshold values are reduced in an ‘adjustment bid’. A new pricing mechanism for these adjustment bids is introduced, which varies with historical deviations of a prosumer from energy commitments. This market framework and pricing mechanism are simulated through a blockchain network hosted on a Python Django server using the practical Byzantine fault tolerance consensus algorithm to guarantee network immutability and data privacy. Efforts to mitigate such mismatches between ex ante and ex post energy values incentivise risk‐aware participation in P2P markets. In addition, the welfare of both prosumers and consumers improves with their participation in the proposed market framework. Furthermore, implementing a network using blockchain technology guarantees the privacy of bidding data and provides a secure transaction platform. |
| first_indexed | 2024-03-08T18:30:47Z |
| format | Article |
| id | doaj.art-6f1df430267541b4985be4b7395305b9 |
| institution | Directory Open Access Journal |
| issn | 2634-1581 |
| language | English |
| last_indexed | 2025-02-18T05:20:36Z |
| publishDate | 2023-08-01 |
| publisher | Wiley |
| record_format | Article |
| series | Energy Conversion and Economics |
| spelling | doaj.art-6f1df430267541b4985be4b7395305b92024-11-15T10:46:30ZengWileyEnergy Conversion and Economics2634-15812023-08-014425226610.1049/enc2.12092Multi‐stage energy‐risk adjustments using practical Byzantine fault tolerance consensus for blockchain‐powered peer‐to‐peer transactive marketsVivek Mohan0Vishnu Dhinakaran1Mallika Gangadharan2Aditya Modekurti3Shyam M4Jisma M5Department of Electrical Engineering National Institute of Technology Calicut KozhikodeKeralaIndiaFaculté des sciences et technologies Université de Lorraine NancyGrand EstFranceDepartment of Electrical and Electronics Engineering National Institute of Technology Tiruchirappalli TiruchirappalliTamilnaduIndiaDepartment of Electrical and Electronics Engineering National Institute of Technology Tiruchirappalli TiruchirappalliTamilnaduIndiaDepartment of Electrical and Electronics Engineering National Institute of Technology Tiruchirappalli TiruchirappalliTamilnaduIndiaDepartment of Electrical and Electronics Engineering National Institute of Technology Tiruchirappalli TiruchirappalliTamilnaduIndiaAbstract The energy risk associated with distributed energy resources is inevitable in peer‐to‐peer (P2P) transactive energy markets owing to mismatches between energy commitments and metered measurements. However, adjusting these possible mismatches by progressive revision of the energy commitments in the rolling time horizon mitigates the energy risk, and thereby mitigates the financial risk for prosumers. In this study, the conditional value at risk (CVaR) is used to estimate the risk value for each prosumer. The energy offers that are riskier than CVaR‐based threshold values are reduced in an ‘adjustment bid’. A new pricing mechanism for these adjustment bids is introduced, which varies with historical deviations of a prosumer from energy commitments. This market framework and pricing mechanism are simulated through a blockchain network hosted on a Python Django server using the practical Byzantine fault tolerance consensus algorithm to guarantee network immutability and data privacy. Efforts to mitigate such mismatches between ex ante and ex post energy values incentivise risk‐aware participation in P2P markets. In addition, the welfare of both prosumers and consumers improves with their participation in the proposed market framework. Furthermore, implementing a network using blockchain technology guarantees the privacy of bidding data and provides a secure transaction platform.https://doi.org/10.1049/enc2.12092biddingblockchainenergy riskmicrogridsP2P markets |
| spellingShingle | Vivek Mohan Vishnu Dhinakaran Mallika Gangadharan Aditya Modekurti Shyam M Jisma M Multi‐stage energy‐risk adjustments using practical Byzantine fault tolerance consensus for blockchain‐powered peer‐to‐peer transactive markets Energy Conversion and Economics bidding blockchain energy risk microgrids P2P markets |
| title | Multi‐stage energy‐risk adjustments using practical Byzantine fault tolerance consensus for blockchain‐powered peer‐to‐peer transactive markets |
| title_full | Multi‐stage energy‐risk adjustments using practical Byzantine fault tolerance consensus for blockchain‐powered peer‐to‐peer transactive markets |
| title_fullStr | Multi‐stage energy‐risk adjustments using practical Byzantine fault tolerance consensus for blockchain‐powered peer‐to‐peer transactive markets |
| title_full_unstemmed | Multi‐stage energy‐risk adjustments using practical Byzantine fault tolerance consensus for blockchain‐powered peer‐to‐peer transactive markets |
| title_short | Multi‐stage energy‐risk adjustments using practical Byzantine fault tolerance consensus for blockchain‐powered peer‐to‐peer transactive markets |
| title_sort | multi stage energy risk adjustments using practical byzantine fault tolerance consensus for blockchain powered peer to peer transactive markets |
| topic | bidding blockchain energy risk microgrids P2P markets |
| url | https://doi.org/10.1049/enc2.12092 |
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