Small-scale Microgrid Energy Market Based on PILT-DAO

The energy market of DERs in Microgrids (MGs) is still under devolvement due to low security and transparency at present. Therefore, a small-scale microgrid energy market is proposed in this study based on Decentralized Autonomous Organization of Parallel, Integrity, Longevity, and Transparency (PILT-DAO) based on the features of the blockchain. A buyer or seller at the microgrid level can complete the transaction matching in the PILT-DAO market. In order to implement this energy trading platform, the first step is to simulate a modified distributed IEEE 13 node test feeders system. The next step is to develop a price mechanism based on a consensus + innovation distributed algorithm to calculate the Distribution Locational Marginal Price (DLMP). In the meantime, smart meters record the Power Flow (PF) data of each DG as one node of the whole simulated distribution power system and send them to blockchain including distributed price and power generation data. The third step is to constitute a decentralized autonomous market by programming smart contracts in Ethereum DAO, running in an artificial system parallelly. A case study of a small-scale microgrid energy market based on PILT-DAO is illustrated followed by the conclusion.