Distributed Electricity Transaction Mechanism Based on Block-chain and Distributed Congestion Management

With the large-scale integration of small and distributed plants to power grid and power consumers are directly involved in electricity trading, a more flexible and faster mode to trade electricity will be needed. Block chain is a distributed database system involving nodes, transactions are stored in every node and can’t be tampered, blockchain transaction has been broadly used in many markets, but in electricity market, the challenge is how to apply electricity delivering security check in power grid for all distributed nodes. This paper introduces the regular methods to trade electricity on blockchain, and points out the key technical barriers to a real distributed electricity trading system is apply power flow calculation method through distributed nodes without complete network topology data and multilateral entities could achieve congestion management autonomously. Then this paper proposes a method to trade electricity in distributed network with blockchain technology and adopt distributed power flow calculation to check the security of electricity delivery process, this method provide a foundation of trust among all entities, and with immutable, decentralized, dynamic characteristic. At last, an optimal model was built for calculating the cost of power flow congestion management, which could provide a more accurate price signal to guide electricity consumption. The power flow algorithm, transaction algorithm and data of nodes in blockchain will be stored in smart meter installed in distributed plants or power consumers.