Demand Side Load Management for Big Industrial Energy Users Under Blockchain-Based Peer-to-Peer Electricity Market

Blockchain is the key technology of Bitcoin and other cryptocurrencies, and it is one of the most exciting technologies changing the world as of late. Targeting at big industrial energy users, this paper first presents a new market structure (i.e., transaction rules) under existing blockchain-based electricity transaction platforms to cover popular types of markets such as contract, day-ahead, adjustment and balancing markets; and then focuses on the optimal load management problem for a particular industrial user. The proof-of-work cost from blockchain is also modeled. A key feature of this load management problem is that the user has direct control on its own load. The obtained load control model is much more accurate than existing approaches in which system operators or demand aggregators cannot control load directly and have to rely on inaccurate estimations. As a case study, the pumping load of a water supply plant is investigated to illustrate how the demand load is managed under this blockchain-based market. From the case study, it is found that 18.9% of total cost can be saved under this new market structure.