Blockchain Technology Applied To Incentive Demand Response Program With Self-Reported Baseline Mechanism

As the power grid becomes more complex,Communication and data sharing between the various parts of the grid are necessary.The grid needs a transparent and trusted decentralized system for faster transactions.We build a demand response(DR)program that uses blockchain technology with smart contract to address security and trustworthiness issues and validate the electrical power demand between users and the system operator(SO)based on wholesale market energy prices to activate appropriate financial settlements.The self-reporting baseline is proposed in our thesis,and blockchain technology is applied on demand response(DR)program to aggregate electricity users and aggregators.Users are requested to report their baseline data.SO can conduct load reduction with assessments of users or aggregators.The participants only need to provide their baseline data which is the minimum information needed for any DR event.Signaled users who reduce their power consumption during the DR event are rewarded.Non-called participants who deviate away from the baseline limits are penalized.The penalty function and randomization of calling users control baseline inflation.During the DR event,signaled users are randomly selected to participate in load reduction.The blockchain network deploys a smart contract to execute the monetary transactions based on an agreement built by users and SO.Proof of authority consensus protocol through the authority users called "validators" confirms the final transactions settlements.