Distributed Peer-to-Peer Energy Trading in Virtual Microgrids: A Blockchain Survey for Future Smart Grid
Sami Saeed Binyamin 1 and Sami Ben Slama2,*
1 The Applied College, King Abdulaziz University, Jeddah, Saudi Arabia; ssbinyamin@kau.edu.sa
2 The Applied College, King Abdulaziz University, Jeddah, Saudi Arabia; sabdullah1@kau.edu.sa
* Correspondence: sabdullah1@kau.edu.sa;
Funding Information: The Deanship of Scientific Research (DSR) at King Abdulaziz University (KAU), Jeddah, Saudi Arabia has funded this project under grant no. G: 109-156-1443.
Abstract: Due to the apparent demands and constraints faced by energy systems operating in the market world, the Prosumer Energy trade strategy was selected as a potential opportunity for research and industries. Energy trading has expanded due to the availability of dispersed energy sources and power users who produce more electricity than they would otherwise and can profitably export their excess fuel. The energy trading system blends energy from various sources and effectively coordinates it to ensure stable and optimal usage of available resources and better facilities for energy users. Peer-to-peer (P2P) energy trading is a joint research topic that involves various managerial and technical challenges. This paper provides an overview of peer-to-peer energy exchange and how blockchain can be used to increase transparency and overall performance, including the degree of decentralization, scalability, and device reliability. A thorough examination of the Prosumer Smart Grid environment is explored and clarified. The energy sharing mechanism among consumers comprises two major components: information/digital technology and optimization techniques. Three blockchain-based energy sharing models have been proposed to overcome technical and market barriers to adopt this revolutionary technology. The paper further discusses open topics and possible future paths for peer-to-peer blockchain-based energy sharing.
Keywords: Smart Grid; Prosumer; Peer-to-peer; Blockchain; Energy Trade
1. Introduction
Nowadays, smart grids (SGs) have been considered promising research issues because of their efficiency in addressing previous networks’ devastating problems and complications. SG technologies significantly improve energy demand by involving small networks and distributed energy resources. Existing infrastructure stakeholders are attracted to the rapid growth in electricity use and transparent infrastructure [1]. SGs have also been chosen as powerful self-processing technologies that allow the transfer of electricity and innovation technologies in the same ways. Various forms of energy consumption that use resources, management, transfer and exchange with others have been created quickly and effectively [2]. This new concept of energy consumption is classified as ”Prosumer”. Due to the flexibility and energy conservation in the distribution phase of electricity, a great interest of customers is observed in smart grid sharing [3]. In this vein, the Prosumer will have a crucial role in emerging SGs, organizing peak periods, energy consumption, and rationalization [4]. Therefore, it is expected that Energy Management Systems (EMSs) and Internet of Things (IoT) systems will be incorporated into identifying and analyzing related problems and implementing and testing the impact of the prosumer requirements on potential SGs. These latter have prompted the Power Service Provider (PSP) to improve power lines in providing advanced technologies and applications for developing consumer relationships and responding to Prosumer requirements and the energy leasing method [5]. This approach has encouraged PSP to establish modern, scalable computing systems, decentralized structures and statistical techniques. The latter aims to efficiently manage services, engage stakeholders and promote progress in business strategy [6]. As a result, the PSP provided and secured a power line to customers rather than leasing power lines [7].
In Reference [8], the authors demonstrated that SG was also certified and chosen as a solution that includes fuels, knowledge, communications, commercial areas, and various applications to obtain scientific, economic, and legal priorities. According to digitization, convergence with SG technologies, interoperability, and new specifications has become increasingly necessary for Small-to-Medium-Enterprises (SMEs). The traditional network has evolved with innovative technology and intelligent applications. Consequently, the global energy infrastructure has become more diversified, resulting in digital communications among all stakeholders, such as industries and Prosumer [9].
The work presented in [10] identifies how most technologies should be seamlessly and independently, fully compatible with PSP and companies, with the inclusion of the IoT as a potential solution. The emerging potential solution included a wide range of technologies, including smart housing, artificial manufacturing, smart cities, advanced agriculture, the intelligence industry (also known as industries 4.0), SG, etc. It can be emphasized that the IoT has become an important pillar of SG due to its flexibility in connecting the Grid, network and applications with uniquely defined entities and the ability to share information on a system without interacting with devices or equipment or human and computer [11]. So, the specific qualifications and features of edge technologies, Prosumer and smart applications are important because they will determine in the future, classifications of applications, tools, and techniques applied within smart homes, Internet infrastructure, web and computer services, and infrastructure [12]. In Reference [13], the authors have shown that the IoT will restructure our ideas about societies worldwide. According to the International Energy Agency (IEA), attempting to create Smart Grid technology that improves and replaces existing systems is driving people and communities to smart infrastructure innovations (according to the International Energy Agency (IEA)). SG is one of the pillars of creating a stable, safer and productive economy. The latter will allow the management and resolution of all kinds of problems related to lighting, traffic lights, pollution, parking lots, street alarms, and early detection of excessive resources, emergency weather, and energy storage. Also, SG does the same with infrastructure in power lines, smart meters, consoles, post-station systems, switches, sensors, applications and more [14]. Due to the diversity of advanced technologies, SG has become less expensive than the current electricity grid. Switching to SG requires electricity from a variety of sources, which are distributed frequently [15]. The advanced development of the network will include conventional power plants, solar and wind energy sources, plug-ins, and energy storage facilities. It can significantly reduce energy consumption and costs by using and maintaining data. For example, in [16], the authors showed that smart lighting is designed and automatically tracked around different areas, where adjusted to meet daylight or traffic requirements and quickly determines energy demand. In [17], the authors have shown that consumers can adjust the home temperatures and the air conditioners, depending on customer requirements, during all periods of work or holidays. Indeed, the authors report that SG with IoT is designed to reduce costs by tracking smart energy and switching the source when power outages are detected. In [18], the authors suggested that numerous reports prove that IoT growth will promote the US energy sector to integrate an edge of renewable facilities to improve functionalities of both wind power generation, micro-grid networks and feeding structures. In [19], the authors showed that IoT-SGs would help the transportation and parking station sectors communicate and collect real-time information from drivers and authorities using advanced sensors. This vision would effectively reduce road congestion, develop traffic options, report pedestrians on street collisions, improve traffic solutions, track street collisions among pedestrians, damage the urban environment and encourage road charges and park meter automatically. Furthermore, autonomous vehicles can work wirelessly through the Internet of Things technology. The authors reported in [20] that innovative IoT technologies could ensure waste and water management and reduce emissions of greenhouse gases. It may also include monitoring of products in real-time and loss management results. In [21], the authors show that IoT technologies and big data are included to collect and monitor water movement and temperature details and help users manage energy demand, regulate energy consumption and reduce waste. To achieve these goals, timer and infrastructure are included. In [22], the authors stated that IoT would be used to supply electricity to areas with low population density by allowing the transition to integrated networks linking national or regional infrastructure. These networks are necessary to implement modern energy technologies by continuing to use the latest technologies. In [23], the authors suggested that IoT was chosen as the best solution for smart cities and SGs. Indeed, this latter will report the problems in the region in real-time. For example, in Mannheim, Germany, several SG applications were introduced and implemented using IoT. With this initiative, green resources were implemented on a large scale, and energy use was planned and developed in Mannheim cities [24]. In Mannheim cities, Schneider Electric Company offers a variety of wired solar power systems for families. This will allow the family to have PV systems, control and maintenance equipment so that the entire network is exhausted or until solar energy is produced and converted to meet household energy demand during peak periods [25].
In [26], the authors stated that the Lumin Energy Project (LEP) was chosen as an attractive and innovative project. LEP included IoT technologies, which saved costs and emissions while promoting clean energy. This project provides an efficient program for solar panels with adaptive storage units. In [27], the authors emphasized that many technologies have been discovered to facilitate the decentralization of correspondence, data storage, and delivery in recent years with all of these approximate activities. This phenomenon is strengthening research and industries to present the Edge computing model as a potential solution. Edge computing will be included in the grid for computing. This will ensure that storage and networks are linked to the database and data centers in the cloud. In [28], the authors argue that edge computing will be involved in the future to increase reaction times, reduce energy prices, increase interactions, scalability, and confidentiality. In [29], Edge Computing has been incorporated to help heterogeneous IoT systems communicate through specific network topology, different devices (sensors, cars, machines, computers, metering computers, etc.). In [30], the authors suggest that several disciplines will benefit from IoT smart grid solutions such as Business 4.0, Energy Management and Prosumers, and will support many academics and industries. The heterogeneous data collected and generated by IoT devices can be used to provide advanced computing technology solutions for infrastructure according to the three-tier computing infrastructure (IoT-Sensors, Cloud-Services and Edge Nodes) [31]. With Edge Computing, IoT platforms allow gathering information from hundreds or even thousands of data sets and helping companies determine whether or not they will work. Anticipate how cultural changes need to recognize the adoption of emerging technology. This will prompt many observers to plan the electricity grid, especially given the green hybrid electric vehicles [32]. In [33], the authors showed that SG responds to potential electricity consumption problems by combining wireless detection systems and cloud computing.
Moreover, data protection concerns raise significant issues in entering study groups while using and disseminating electrical data. To enhance the pillars of SG, a blockchain platform is included. Blockchain infrastructure will be provided with accurate strategies to oversee data exchange between customers and SGs [34].
In this review paper, we make the following contributions:
A list of acronyms used throughout the paper is presented in Appendix A (Table A1).
The remaining part of the survey is organized as follows: Section 1 introduces the edge computing and IoT concepts. In “Preliminaries: Detailed Analysis of the Literature” Section 2, we will provide a state of the art of essential studies that addressed various challenges and issues in Prosumer SG and energy prosumer, and Prosumer classifications. The “Peer-to-Peer Energy Trading” Section 3 discusses the peer-to-peer energy trading concept, architecture, and techniques. In “Blockchain Technology in SG” Section 4, we discuss the Blockchain architecture, the information processing in Prosumer SG, the concept, model, and the future energy management systems. In Section 5, we provide open issues and Future directions. We conclude the survey paper in Section 6.
2. Preliminaries: Detailed Analysis of the Literature
2.1 Summary of SG Prosumer/Energy Trade
This sub-section describes the overall distribution structure of the hierarchical Prosumer-Smart Grid given by Figure 1. The presented hierarchical scheme explains the relationship between appliances, intelligent applications, cloud and Edge Calculation based Prosumers. IoT applications on the edge of the network tend to produce an enormous amount of data that can be calculated in data centers, limiting access to service requirements. Additionally, edge-based devices continuously use data in the cloud to enforce Prosumer to create data centers, unify access and deliver data. Edge aims to transfer data collected from data centers to the platform’s advantages using smart devices, Fifth-generation wireless (5G) or network gateways to perform tasks and provide cloud solutions.
Figure 1. Overall structure of a distribution Prosumer-smart Grid system
SGs are a set of tools for power consumption, control, software, grid technology installations deployed in homes, businesses, and the entire electric power grid. In this vein, SG innovations can be described as stand-alone structures that can efficiently address challenges in the electricity grid and ensure that all customers can access reliable electricity. SG will be the successor to the previous conventional networks by providing cleaner, more energy-efficient, more stable and sustainable electrical supplies [35]. Given the complexity of the Grid, service providers for the smart grid will assume that they are involved in the creation of the technological, financial, and operational approaches that help in the development of the SG infrastructure [36]. To improve electricity consumption, SG includes a new infrastructure. To enhance performance, continuous sensing and power rating can be achieved through advanced classifications that allow the properties to be deployed with greater loads [37]. In [38], the authors suggested that to prevent problems related to production, energy demand and proper handling of consumers, and it is necessary to change the traditional techniques and methods. The active service should be improved based on some detected standards and problems. The authors emphasized in [39] that the operating output is increased by choosing the lowest-cost supply unit with system controls. Also, SG assists consumers in controlling demand trends and ensuring flexibility by adjusting energy consumption and purchasing process. This trend will encourage customer interest in energy revenue, purchase and sale. SG was also chosen as an attractive modern technology due to its ability to provide current knowledge about energy consumption, different service methods and benefits. In [40], the authors show that SG includes large and distributed power plants and helps increase a variety of domestic energy services to customers by combining wind, heat, electricity, and carbon efficiency. Whereas, in [41], the authors have shown that SG generates energy at different levels (and prices), and customers can choose from competing bidders in a well-designed and managed market.
Thus, markets may play an efficient role in managing these variables. Regulators, creditors and consumers have the right to change the corporate law according to operating and economic conditions. For this reason, electricity, power, location, times, levels, and performance are some of the various network stats for real-time monitoring and supervision. The electricity purchase was considered among the Pillars and goals of modern SGs. In [42], the authors were proven the previous consideration related to electricity purchasing. This proof is based on an advanced infrastructure that will provide an integrated policy and customer service. This infrastructure allows monitoring of light, faults, artificial sources, and energy demand.
Future smart grids pose some challenges for a variety of energy demand and decentralized production. The role of consumers and producers can be managed simultaneously by the SG-end-users (so-called ”Prosumers ”). In future network service, prosumers are seen as an attractive solution for resolving many obstacles and challenges faced by SGs [43]. In [44], the authors suggested that the Prosumer Groups (ProG) strive to transform traditional customers into productive consumers, improve SG performance, and deliver an economical, logistical, and sustainable advantage. The authors in [45] have reported that the prosumers aim to generate and consume energy and possibly start sharing and spreading the extra power to other customers in the distribution system using edge technologies. To maximize the use of the edge technology, procedures, business models, and growth incentives, it is vital to understand the roles and priorities of consumers in the early stages of smart grid deployment [46]. In [47], the Prosumer SG functions and characteristics are chosen based on pre-creation energy consumption strategies. In [48], the authors demonstrated that the Prosumer SG functions and features are determined based on the pre-creation energy consumption strategies. These functions are the ”engineer” who supports emerging technology and creativity, the ”Green Prosumer,” interested in innovative approaches for environmental purposes and the ”value seeker,” involved in economic benefits and Prosumer efficiency, consistency. Edge Computing Technology has been included as an attractive technology to acquire Prosumer goals. This latter is intended to improve privacy and data protection, enhanced operating output, improved market quality, stability, network management and infrastructure handling, low response time, data dissemination, more robust device performance and lower operating costs [49].
2.2 SG Emerging Issues
Given all the advances, methods, and techniques incorporated in the SGs, this emerging technology also poses a variety of important issues. Critical interests in SG can be generally defined as a technology essential for smart grid security (hardware, software, infrastructure, utilities, networks, sensors, and devices). In this context, this subsection seeks to reveal the main critical issues emerging in communications and information technology, sensors, estimation, automation system technology, electrical and electronic devices and energy storage systems used in SGs. The SG emerging issues as given as follow:
The Smart Grid is an advanced and asynchronous digital power transmission system that consists of forecasting multiple complications, self-healing, adaptability, adaptation, and sustainable development. SG seems to grow, energy companies are gaining dynamism through smart meters. Switching to smart grids will change power generation systems that will encourage
Prosumers, and enhance the psychological and social changes of employees that make educated and energy-related life decisions. In this regard, the effectiveness of Prosumers in adopting the smart grid has been addressed in evaluation reports and studies. There are in fact a few methodological statistics related to the variables involved in general interests relative to the number of articles on business and innovation category studies. Some of the results of previous studies support and oppose the theory that clients value rewards. It provides some general guidelines for stimulating many approaches. Due to the large diversity of power grids in smart grid projects, the results are distributed entirely on the actual topic. The studies are based on social, economic, and cultural concepts that have monopolized generations of energy users achieving a smart grid is an urgent and important goal. The goal of this investment is to achieve positive growth and incorporate green energy, among many other aspects, that consumers are always concerned about. The literature explored the role of current technology in brand awareness. With regard to energy management and the sustainable use of consumer energy, the use of edge computing IoT architecture should maintain motivation as part of energy transfer. Prosumer’s SG will encourage everyone to improve their strategic goals or gain a certain level of independence while enabling the smart grid with the ability to further reduce costs as appropriate. Fully automated economic or automated approaches certainly, demand management or extensive deployment of SG devices will have stability and logistical performance, which is essential. The biggest challenge for developing smart grid projects is the failure of integrative standards for the residential sector where there are enormous complications and where there is no similar goal, habits of prosperity and demand, requirements, priorities, and local regulations. Indeed, the adoption of advanced technologies lies in the incorporation of the Edge computing IoT and Blockchain is necessary to control the Prosumers. On the other hand, we provide a brief summary of our survey paper that is based on different interests: concepts, applications, field survey and theory. Table 1 shows and summarizes the different level of use in each interest and area. This issue has the potential to cause prosumers to become disconnected and isolated. This isolation may result in erratic pricing in different locations. Even the model is effective for local markets with fewer participants of the scheme and the need for global outstretch.
Table 1. Comparison of existing survey papers