Incentivizing Control Design for Blockchain-Enabled Distributed Optimization in Electricity Market Systems

This paper provides an incentivizing control design for blockchain-enabled distributed optimization in electricity market systems. After a wholesale multi-spot bidding problem in electricity market systems is first formulated, an incentivizing distributed optimization inspired by the mechanism design in economics is proposed, and we discuss the relationship between the proposed utility/incentive function design and the potential game. Moreover, it is explained that the proposed mechanism can be implemented on a blockchain system based on Solidity. The effectiveness of the proposed control architecture is finally illustrated by simulation.