Trading Platform. A Blockchain-enabled Peer-to-Peer Energy Trading Platform 10/18/18 PROFESSOR SAIFUR RAHMAN VIRGINIA TECH, USA

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10/18/18 A Blockchain-enabled Peer-to-Peer Energy

USA Keynote Speech IEEE PES EI2 Conference North China

2018 Trading Platform Commonly used blockchain

(e.g., Power Ledger, Australia) Finance (e.g., bitcoin) CO2 (e.

1 10/18/18 A Blockchain-enabled Peer-to-Peer Energy Trading Platform PROFESSOR SAIFUR RAHMAN VIRGINIA TECH, USA Keynote Speech IEEE PES EI2 Conference North China Electric Power University Beijing, China 21 October 2018 Trading Platform Commonly used blockchain applications Energy (e.g., Power Ledger, Australia) Finance (e.g., bitcoin) CO2 (e.g., Energy Blockchain Labs, China) Storage applications (e.g., Tennet project, the Netherlands) 2 1

2 10/18/18 Focus on electric energy 3 Intelligent Interconnected Microgrids Sensors Detect outages, fluctuations, and disturbances Intelligent Load Demand or price-driven control of appliances Distribution Network Interconnected micro grids Distributed Arch. Local Monitoring and Control Microgrid Bulk Power Plant Wind Power Park Smart Inverters and Storage Minimize voltage and power fluctuations Control Room Functions Balance electricity Supply/demand across the grid Saifur Rahman 2

Enables and facilitate competition in energy markets Provides and maintains systems, processes and data 5 Distribution System Operations Issues AC power

3 What is a DSO? DSO stands for Distribution System Operator DSO: Supports system stability Performs system optimization Maintains security of supply and quality of services Enables and facilitate competition in energy markets Provides and maintains systems, processes and data 5 Distribution System Operations Issues AC power from roof-top solar will have power quality issues (voltage, harmonics, etc.) EV and energy storage can be charged/discharged Demand Response can be bought or sold Homeowner may want to store energy and sell during peak hours Homeowner may want to pre-cool the building or heat the water in advance. 6 3

4 Framework for Peer-to-Peer (P2P) Trading The following transactions can be performed among homes in a microgrid. Scenario 1: Trading of excess solar PV output (kwh) Scenario 2: Negawatt trading (i.e., nw or demand reduction) Scenario 3: Power quality trading (i.e., frequency, voltage, THD, reactive power) Scenario 4: Security and resiliency trading Scenario 5: Greenhouse gas emission trading 7 Blockchain is a Candidate to Address these Problems Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, a car, cash, land) or intangible (intellectual property, patents, copyrights or branding). Virtually anything of value can be tracked and traded on a blockchain network. 8 4

Key Characteristics of a Blockchain Network Consensus: For a transaction to be valid, all participants must agree on its validity Provenance: Participants know where the asset came from and how its

5 Key Characteristics of a Blockchain Network Consensus: For a transaction to be valid, all participants must agree on its validity Provenance: Participants know where the asset came from and how its ownership has changed over time. Immutability: No participant can tamper with a transaction after it has been recorded to the ledger. Finality: A single, shared ledger provides one place to go to determine the ownership of an asset. 9 Examples of Blockchain Application: Tracking Vehicle Ownership Everyone can see the same database Regulator creates new vehicle registrations. Manufacturer gets vehicle ownership transfers from the regulator. Dealer can see the new stock availability. Leasing company can see dealer s inventory. Lessee can see available cars for lease. Scrape merchant accepts vehicle transfer for disposal. 10 5

6 Key Business Benefits with Blockchain Time savings for multi-party transactions Cost savings less oversight, no intermediaries, no duplication of effort Tighter security protect against tampering, fraud and cyber crime Enhanced privacy permission-based to view specific transactions Improved auditability with a shared ledger Increased operational efficiency pure digitization of assets streamlines transfer of ownership 11 An Example of Blockchain Energy Application Focusing on kwh transactions Rooftop solar power has variable supply and demand This requires trading for balancing supply and demand Storage options can also be used to balance supply and demand 12 6

Excess solar PV output (kwh) is traded among homes in a microgrid.

that they are willing to pay ($/kwh) and availability Each prosumer submits PVOFFER,

hourly Blockchain is used to securely record all transactions.

Scenario: Participants prosumers consumers Home owners Distribution-scale solar PV

7 Excess solar PV output (kwh) is traded among homes in a microgrid. kwh Trading Scenario Microgrid Each consumer submits BUYOFFER comprising kwh, price that they are willing to pay ($/kwh) and availability Each prosumer submits PVOFFER, comprising kwh, reserve price ($/kwh, optional) and availability Market is cleared hourly Blockchain is used to securely record all transactions. Power quality (harmonics/voltage) can be a parameter to be recorded 13 kwh Trading Scenario: Participants prosumers consumers Home owners Distribution-scale solar PV DSO Participants Building owners Community battery storage DER owners EV fleet (stored energy in an EV can be sent back to the grid) 7

8 kwh Trading Scenario: Assets Physical asset One-time registration is required PV Assets kwh Commodity (Vary hourly) PV output (kwh) Tokens Monetary unit Token Monetizing Opportunities Bitcoin Ether Litecoin 16 8

kwh Trading Scenario: Transactions & Transaction Flows AcceptOfferBroadcast 21Mar18-13:00

21Mar18-13:00 Sent @12:59 13:00 14:00 Exchange of Excess PV Output BUYOffer I want to buy

accepts offers from both prosumers and consumers Both prosumers/consumers bid into the

excess PV output occurs the next hour Need: measurement and verification (M&V) of energy

9 kwh Trading Scenario: Transactions & Transaction Flows AcceptOfferBroadcast 21Mar18-13:00 12:00 PVOffer I have 6kWh to sell between 3tokens/kWh CloseBidding 21Mar18-13:00 13:00 14:00 Exchange of Excess PV Output BUYOffer I want to buy 5kWh between 4tokens/kWh At the beginning of each hour: ØThe business network accepts offers from both prosumers and consumers Both prosumers/consumers bid into the market: ØProsumer: PVOffer ØConsumer: BUYOffer Market is cleared hourly The exchange of excess PV output occurs the next hour Need: measurement and verification (M&V) of energy sales/purchased 17 Tool for M&V Implementation: WiseBldg WiseBldg= Open Architecture Platform for Smart Buildings 9

10 WiseBldg Plug & Play HVAC Load Controllers WiseBldg automatically discovers new load controllers deployed in a building CT50 (WiFi) CT80 (ZigBee SE) ICM (WiFi) Nest (WiFi) CT30 (WiFi) VAV controller (Modbus) RTU (Modbus) Philips Hue (WiFi) WiseBldg Cloud Lighting load controller Light switch (WiFi) (BACnet) Lighting Load Controllers Step-dimmed ballast (ZigBee) Smart plug (WiFi) Power meter (Modbus) Power meter (BACnet/M odbus) Light sensor (BACnet) Occupancy sensor (BACnet) Plug load controller (BACnet) Smart plug (ZigBee) Plug Load Controllers Sensors/ PowerMeters WiseBldg with Smart Inverter Smart inverter control Smart inverter control 20 10

11 10/18/18 WiseBldg with Battery Storage WiseBldg with Security Cameras Location: Alexandria, VA Building type: Office View: Indoor Point of contact: Building Engineer (xxx-xxx-xxxx) 11

WiseBldg Interoperability Communication Technologies q Ethernet (IEEE 802.

, XML, JSON, RSS/Atom) q ZigBee API q Smart Energy (SE) q OpenADR (Open Automated Demand Response) WEB

12 WiseBldg Interoperability Communication Technologies q Ethernet (IEEE 802.3) q Serial Interface (RS-485) q ZigBee (IEEE ) q WiFi (IEEE ) Data Exchange Protocols q BACnet (IP and MS/TP) q Modbus (RTU and TCP) q Web (e.g., XML, JSON, RSS/Atom) q ZigBee API q Smart Energy (SE) q OpenADR (Open Automated Demand Response) WEB RS-485 Smart Energy Profile (SEP) On-going Blockchain Research at ARI Smart contracts that maximize economic efficiency of the microgrid Ø kwh trading Ø Negawatt-hour trading Test bed in a laboratory environment Load forecasting and PV forecasting methods at a building level 24 12

10/18/18 P2P Trading in a Laboratory Environment 6.

2: Seller 2 Open-source hyperledger is used as a platform for

are used for demonstration Rooftop solar PV is used as a basis to

13 10/18/18 P2P Trading in a Laboratory Environment 6.4kW PV Smart Inverter Offer from Seller 1: Seller 1 Offer from Seller 2: Seller 2 Open-source hyperledger is used as a platform for implementing the P2P trading environment Two sellers and three buyers are used for demonstration Rooftop solar PV is used as a basis to generate PV output profiles A hyperledger platform is set up on a server. Hyperledger ComposerPlayground Server (Port 8080) REST server (Port 3000) Bid from Buyer 1: Buyer 1 IP: xx.xx.xx.xxx Bid from Buyer 2: Buyer 2 Bid from Buyer 3: Buyer 3 25 Hyperledger Practical Examples Battery pilots by TenneT/Vandebron Using EV batteries to help balance the grid in the Netherlands 26 13

10/18/18 Hyperledger Practical Examples, contd. Energy Blockchain labs (http://www.

com/) ØApplying hyperledger technology to make carbon asset trading faster and more

14 10/18/18 Hyperledger Practical Examples, contd. Energy Blockchain labs ( ØApplying hyperledger technology to make carbon asset trading faster and more transparent 27 Homeowner Dashboard T Homeowner has access to: PV production (kwh) Household consumption (kwh) Forecasted PV output Forecasted load Bid/purchase history Token history 28 14

Blockchain Operator Dashboard Operator has oversight on: Participants BUYOFFER PVOFFER Transaction history Market clearing prices (tokens/kwh) 29 NegaWatt(nW) Trading Scenarios DSO

15 Blockchain Operator Dashboard Operator has oversight on: Participants BUYOFFER PVOFFER Transaction history Market clearing prices (tokens/kwh) 29 NegaWatt(nW) Trading Scenarios DSO broadcasts signals/sends requests to perform demand reductions in buildings nwh trading among buildings Someone can buy DR (kw) if their contracted DR to be supplied to the grid falls short. 15

($/kwh) and availability Market is cleared hourly Blockchain is used to securely record all transactions. 31 Framework for Negawatthour Trading Type II.

16 Framework for Negawatthour Trading DR Aggregator Blockchain Network Type I. Negawatt trading between the DR aggregator and homeowners Neighborhood DR Aggregator sends requests (or price signals) to perform DR Each home sends a response with DR capability (kwh), price ($/kwh) and availability Market is cleared hourly Blockchain is used to securely record all transactions. 31 Framework for Negawatthour Trading Type II. Negawatt trading among homes in the neighborhood Home A Blockchain Network Home B Homes A & B cannot meet their demand reduction promises with DR Aggregator and asks his neighbors to help Each home sends a response with its DR capability (kwh) and price ($/kwh) Market is cleared hourly Blockchain is used to securely record all transactions

17 10/18/18 Summary Blockchain Peer-to-peer trading Energy trading in a microgrid Negawatt trading scenarios Energy trading using Hyperledger in a laboratory environment Thank you Saifur Rahman President IEEE Power & Energy Society 17

SMART BUILDINGS AND ENERGY EFFICIENCY

SMART BUILDINGS AND ENERGY EFFICIENCY Invited Lecture Professor Saifur Rahman, PhD Virginia Tech, USA ABES Engineering College, Ghaziabad, India, 08 March 2018 From Smart Buildings to Smart Grid Smart