SolarChain P2P: A Blockchain-based Transaction Platform for Distributed Solar Energy Trading

The purpose of this proposal is to address an efficient and secure blockchain solution to facilitate renewable energy trading between Distributed Energy Resources (DERs) in the Solar PV energy market. Indiana Tool and Mfg. Co. (ITAMCO) is proposing to develop a cloud-based peer-to-peer blockchain transaction recording system for the emerging decentralized solar energy market. In phase I, the research will be restricted to showing feasibility of design and architecture of the proposed system. As renewable energy (e.g., solar energy) continues to make up a larger portion of our Nation’s energy generation capacity, Distributed Energy Resources (DERs) as part of a transactive grid are an attractive, environmentally friendly, and cost- effective approach to meeting Demand Response (DR) needs of existing providers and holds the promise of a free and open electricity market for individual consumers. As compared to the top-down regulated structure in the traditional electricity market, participants in the transactive grid have the ability to control the trading of energy independently and as needed (on demand). Transactive grid advocates a network model for distributed nodes with a decentralized structure. The network supports the transactions among prosumers, users and energy stations with same equality. Blockchain is the mainstay of the network. Blockchain uses distributed ledgers where all participants on the chain keep a copy of the data. There is no intermediator between any two individuals and the activities (transactions) are totally anonymous and transparent. Blockchain resolves the trust problem between participants using sophisticated algorithms that verify a valid transaction should be recorded on the block. Traditional blockchain applications take a long time to verify transactions and users are required to download all records which consumes local storage. ITAMCO will design a new architecture for a blockchain transaction system in Phase 1 to overcome the current disadvantages in blockchain applications. The system will be implemented with Hyperledger Fabric, Quick UDP Internet Connections (QUIC) protocol and will utilize the InterPlanetary File System (IPFS) for data storage. The team will design a simple prototype design built on Hyperledger Fabric in Phase 1 to show the feasibility and the high performance of the proposed blockchain transaction system. ITAMCO will partner with the Center for Research Computing at the University of Notre Dame who will provide necessary resources for the system development and will design the encryption mechanisms for user authentication, message passing and data storage. ITAMCO will collaborate with local power company (Marshall County REMC) to develop a strategy that can be used in the blockchain transaction system to balance load in the peak hours. Inovateus Solar LLC will provide the team with industry expertise and consulting in PV Solar system hardware (i.e. smart meters) and system integration with current and new PV Solar development projects.