Peer to Peer Energy Trading

The increase in electricity demand has made conventional infrastructure and production of energy obsolete and inecient. A new notion referred to as "Distributed Energy" has given rise to the development of smart grids which allows for the transmission of energy in bi direction as opposed to the one

Project Title

Peer to Peer Energy Trading

Project Area of Specialization

Electrical/Electronic Engineering

Project Summary

The increase in electricity demand has made conventional infrastructure and production of energy obsolete and inecient. A new notion referred to as "Distributed Energy" has given rise to the development of smart grids which allows for the transmission of energy in bi direction as opposed to the one way transmission of electricity from conventional grids in which the electricity generated by the power plants is distributed to houses from the grid only. Distributed energy is referred to as a number of consumers of an electricity network (including any household) that can both generate and store electricity. This multitasking of any particular node of a network is referred to as a "Prosumer"- it can generate as well as consume energy. Hence, the new energy system will allow houses to sell and transfer electricity back to the grid or to other consumers in the network. Such type of nodes are interconnected in a small grid connected system i.e. micro grids, which are then connected to the main smart grid. Prosumers must make a deal by selecting a reasonable trading price whilst ensuring a secure transaction using various technologies, particularly blockchain. This scenario is the definite depiction of Peer to Peer Energy Trading.
P2P mainly focuses on renewable energy sources such as solar arrays/panels (solar energy), photovoltaic (PV) cells also referred to as "solar cells" (which is expected to grow by 11 percent in the next 6 years) and wind turbines (wind energy). They are mainly applied on decentralized networks where there is no centred or pivotal source of energy i.e. a power plant that supplies energy to all consumers. In fact, with the presence of prosumers in a network, there is no centralized producer of energy. Hence, it is a highly decentralized distributed energy network. Therefore, any entity can be removed or added without the network suering from any loss of network service.

Project Objectives

1. To create a prototype bidirectioncal smart meter to measure current, voltage and other relevent parameters of a three phase voltage source.

2. To create a GUI to display values and provide an interface for the users to input relevent data and allow handshaking.

3.To infuse blockchain to carry out secure trasactions virtually.

Project Implementation Method

The ultimate goal of this project is to create a reliable and effective distribution network and cater to the requirements of each node of the network in order to reduce electricity shortage and power outs.

We will create a prototype model of 4 houses each with their own energy generation system particularly solar powered inverters and fuel driven generators as well as a smart meter. Each house will have a prototype smart meter that will detect the actual power transferred by sensing various quantities such as voltage and current and feed it to the Data Monitor that is equipped in each house. The Data Monitor contains a GUI to display the parameters and check monthly bill, contracts and payment status. Each house will decide if it wants to be a buyer or seller of energy for the month and enter the minimum and maximum energy it can generate if it chose to be a seller. The buyers will only enter the amount of energy they require. Each house has a unique IP address and ID in order to be identified by the Central Monitor to control the power trade autonomously. Penalties will be imposed if the stated requirements are not met. Transactions will be carried out between the two parties using blockchain.

Benefits of the Project

1. It was found that a P2P energy trading helps households to obtain 30 percent lower energy costs than the traditional energy trading model.

2. It also avoids the need to build more generation facilities and avoid or defer grid reinforcement.

3. Widespread adoption of solar energy sources means that there is excessive energy produced during daylight hours, placing less load and consumption of other conventional energy generation sources such as natural gas and nuclear energy.

4. Hence, it provides relaxation to nonrenewable forms of energy that might eventually run out.

5. A decentralized/distributed energy grid guarantees fewer points of failure and provides improved grid resilience.

6. As it uses renewable forms of energy that are environment friendly, it will reduce carbon dioxide emissions and have less adverse effects on the climate.

7. During times when use of grid infrastructure is minimal and energy demand is low. Those without solar panels are still able to access renewable energy at a cheaper price from their neighbors, and those that sell their excess energy can do so at a price that is more than they'd receive as a Feed-in Tariff (FIT) and cheaper than the Time of Use (TOU) price from their retailer. Thus, it is a win-win situation for both parties.

8. Energy does not have to be transported from centrally located power plants, reducing electricity transportation costs. According to Aurora Energy, 41.1 percent of our electricity costs goes towards managing and maintaining the poles and wires that deliver power from generators to customers’ premises.

9. It provides a chance to deal with other consumers directly and cut out the middle man (electricity retailers).

10. Using blockchain, all transactions are public and once on the blockchain, cannot be altered in any way creating full transparency and guaranteeing security of data.

Technical Details of Final Deliverable

We will make use of 4 laptops each equipped with a GUI using Microsoft Visual Studio. These laptops will be connected to a prototype bidirectional smart meter containing Arduino Uno, ACS712 (current sensor), load (bulb)/ generator(battery) and a voltage sensor. These 4 laptops will be connected to each other using a LAN inorder to communicate. Blockchain will be infused in the system to enable secure transaction. 

Final Deliverable of the Project

HW/SW integrated system

Core Industry

Energy

Other Industries

Core Technology

Blockchain

Other Technologies

Sustainable Development Goals

Affordable and Clean Energy, Sustainable Cities and Communities, Climate Action

Required Resources

If you need this project, please contact me on contact@adikhanofficial.com