Transactive Energy Management with Blockchain Technology

Transactive.pngPower, in traditional energy networks, flows in one direction, from a centralized authority to end-use customers. Integration of renewables and energy storage, leading to rise of prosumers have created localized bidirectional flows. As the result, the utility demand has decreased and traditional centralized controller can no longer realize the optimal performance of ever growing  distribution systems. In addition, these flows can inject instability into distribution systems, detrimental to utility operations. To achieve scalable control, exploiting the potential of smart loads and DER controllability, a framework for decentralized Peer-To-Peer (P2P) energy management can be developed to manage power flows based on localized micro-energy markets. Such decentralized management approach could, in theory, sustain diverse prosumer and utility business models. The Energy Management Department at NEC Labs has been developing an automated decentralized management solution that maximizes the benefit of prosumers while protecting utility assets and maximizing return on utility investment. This P2P energy trading market leverages Blockchain technology and its Smart Contract framework.

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