Profit distribution through blockchain solution from battery energy storage system in a virtual power plant using intelligence techniques

Author(s)

Machado, Alysson A. P. ; Fiorotti, Rodrigo ; Villaca, Rodolfo da S. ; Rocha, Helder R. O.

• Document type: Journal article
• Source: JOURNAL OF ENERGY STORAGE; v. 98, p. 18-pg., 2024-08-02.

Abstract

The implementation of Virtual Power Plants (VPPs) with appropriate energy management can provide consumer units (CUs) with a significant reduction in energy purchase costs and stimulate the use of distributed generation from renewable energy sources, thereby reducing the environmental impact of the energy sector. This study presents a new methodology that integrates meteorological forecasts to estimate renewable energy production through mathematical models and from the day-ahead demands forecast, the Whale Optimization Algorithm (WOA) is applied to optimize the Battery Energy Storage System (BESS) parameters to minimize the total VPPs energy costs. Additionally, a smart contract was written in Solidity and implements user registration, an oracle mechanism to integrate real-world data on-chain, such as Time-of-Use (TOU) prices and feed-in tariffs. An optimization-based profit distribution algorithm is employed to distribute the value generated by the Demand Side Management (DSM) operation among all participants, utilizing Load Factor and a modified Peak-to-Average Ratio. The study case results show a cost reduction of 22.63%, the energy consumption at the peak periods reduced by 48.67%, and 83.53% of the energy exported into the grid, due to the aggregation of the CUs and the BESS implementation. Results from DSM's blockchain-based system have achieved savings for consumer units ranging from 10.41% to 114.80%. The savings of 114.80% represents a nominal profit of 14.80% compared to the previous cost (without DSM). The profit distribution mechanism plays an important role in encouraging consumer units to improve their demand profile in order to maximize the efficiency of the DSM system and consequently obtain financial benefits. Finally, the Deployment costs and operational expenses of the proposed DSM smart contract on various Ethereum-based blockchains are also analyzed, providing insights into the feasibility and scalability of the system. (AU)

• FAPESP's process: 20/05182-3 - PORVIR-5G: programability, orchestration and virtualization in 5G networks
• Grantee: José Marcos Silva Nogueira
• Support Opportunities: Research Projects - Thematic Grants