The advent of distributed energy resources (DERs), such as distributed
renewables, energy storage, electric vehicles, and controllable loads,
rv{brings} a significantly disruptive and transformational impact on the
centralized power system. It is widely accepted that a paradigm shift to a
decentralized power system with bidirectional power flow is necessary to the
integration of DERs. The virtual power plant (VPP) emerges as a promising
paradigm for managing DERs to participate in the power system. In this paper,
we develop a blockchain-based VPP energy management platform to facilitate a
rich set of transactive energy activities among residential users with
renewables, energy storage, and flexible loads in a VPP. Specifically, users
can interact with each other to trade energy for mutual benefits and provide
network services, such as feed-in energy, reserve, and demand response, through
the VPP. To respect the users’ independence and preserve their privacy, we
design a decentralized optimization algorithm to optimize the users’ energy
scheduling, energy trading, and network services. Then we develop a prototype
blockchain network for VPP energy management and implement the proposed
algorithm on the blockchain network. By experiments using real-world
data-trace, we validated the feasibility and effectiveness of our algorithm and
the blockchain system. The simulation results demonstrate that our
blockchain-based VPP energy management platform reduces the users’ cost by up
to 38.6% and reduces the overall system cost by 11.2%.

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