Intelligent Blockchain Group-based Methodology for Renewable Energy Trading for Local Communities

Abstract

A new marketplace for the distribution of renewable energy resources (RES) was created to support the integration of RES into energy systems. This market is called the local energy market (LEM) and it helps consumers and prosumers, who generate and consume energy, exchange RES, and balance their generation and consumption locally. Nevertheless, the long-term sustainability of the LEM requires secure, innovative, and decentralised information technology such as blockchain. Although various blockchain energy trading platforms are available, none of them examines how to empower small- scale prosumers and minimise the gap between them and the big players in the market (e.g., power companies, and energy retailers) by adopting sustainable group methods. None of the research discusses how to help a consumer trade energy by recommending the best offer based on his energy needs and preferences. These issues motivate us to conduct this research to develop an innovative methodology for community group renewable energy trading. We use blockchain to secure the trading marketplace and adapt AI approaches to intelligently support continuous group trading and to intelligently support trading decision-making for consumers. In this study, we develop a proof of concept prototype, which is called the Intelligent Blockchain Group Energy Trading platform, to evaluate our proposed research methodology. The main contribution of this research is to introduce a sustainable, decentralised, and intelligent group-based renewable energy marketplace framework for local communities. The prototype was created using React.js and the Hardhat Ethereum blockchain network. The IBGT platform has three major frameworks: the intelligent renewable energy selling group (RESG) framework, the intelligent reputation-based prosumer xiii ABSTRACT assessment framework, and the intelligent renewable energy surplus selection and trading framework. The intelligent RESG framework comprises three systems: an intelligent reputation-based RESG formation system, an intelligent reputation-based RESG membership system, and an intelligent RESG selling offer management system. These systems collaborate to manage and maintain the life cycle of selling group formation. To ensure the market viability of a selling group, we propose the intelligent reputation-based prosumer assessment framework. This framework examines prosumers based on predetermined assessment criteria. Lastly, the intelligent renewable energy surplus selection and trading framework provides a customer with a data-driven intelligent decision support system to assist in the matching phase and the trading process. This study's findings provide vital insight into the significance of reputation value in the energy trading market and the implications of our proposed intelligent blockchain group-based architecture. Based on the results, it is clear that reputation value and blockchain technology can facilitate better energy trading amongst prosumers, leading to more monetary gain and higher overall energy market efficiency. This substantially impacts the development of renewable energy trading systems. It presents a strong case for implementing our proposed formation, assessment, and trading techniques in future energy trading platforms.