Blockchain-Based and Multi-Layered Electricity Imbalance Settlement Architecture

In the power grid, the Balance Responsible Parties (BRPs) purchase energy based on a forecast of the user consumption. The forecasts are imperfect, and the corrections of their real-time deviations are managed by a System Operator (SO), which charges the BRPs for the procured imbalances. Flexible consumers, associated with a BRP, can be involved in a demand response (DR) program to reduce the imbalance costs. However, running the DR program requires the BRP to invest resources in the infrastructure and increases its operating costs. To limit the intervention of BRP, we implement the DR via a blockchain smart contract. Moreover, to reduce the delay of publication of the imbalance price, caused by the inefficient accounting process of the current balancing markets, a second blockchain is adopted at the SO layer, procuring a fast and auditable credit settlements. The feasibility of the proposed architecture is evaluated over an Ethereum blockchain platform. The results show that blockchains can enable a high automation of the balancing market, by providing (i) the implementation of aggregators with low operating cost and (ii) the timely and transparent access to the balancing information, thus fostering new business models for the BRPs.