Distributed Ledger Network for Peer-to-Peer Energy Trading
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
The growth of Distributed Energy Resources (DERs) such as solar and wind energy poses challenges for utilities, including revenue losses, power quality issues, and increased administrative costs due to net metering regulations, limiting consumers' and producers' flexibility in energy transactions and pricing.
Innovation Solution
A decentralized, distributed ledger network enables secure peer-to-peer energy transactions through Smart Contracts, allowing consumers and producers to set preferences for energy buying and selling, reducing overhead costs and improving grid stability by scheduling energy supply and demand.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If net metering is implemented to allow consumers to sell excess renewable energy to the utility grid, then consumer adoption of DERs increases, but utility revenue decreases
Solution Approach 1:
The patent segments the energy market into multiple independent trading zones using blockchain technology. Instead of a single centralized utility grid, the system creates peer-to-peer energy markets where consumers can trade with multiple sellers (utilities, other consumers with DERs). This segmentation allows consumers to access diverse energy sources while utilities retain control over their own revenue streams through smart contract-based pricing and trading agreements.
2Quantity of substance
If DER capacity increases to provide more renewable energy to the grid, then renewable energy penetration improves, but power quality and grid stability deteriorate
Solution Approach 1:
The patent implements real-time feedback mechanisms through smart contracts that continuously monitor grid conditions, DER output, and consumer demand. The blockchain network enables automated response actions based on predefined criteria, such as curbing DER output when grid stability thresholds are approached or redirecting energy flows to maintain power quality. This feedback loop allows high DER penetration while maintaining grid reliability through automated, data-driven control decisions.
3Reliability
If centralized utility billing and meter management are used to manage electricity distribution, then utility control is maintained, but administrative overhead costs increase
Solution Approach 1:
The patent enables self-service energy management through autonomous smart contracts deployed on the blockchain network. These smart contracts automatically handle billing calculations, meter data collection, transaction recording, and payment processing without requiring utility intervention. Consumers can independently trade energy, settle transactions, and manage their energy portfolios, dramatically reducing the administrative overhead that currently consumes approximately 50% of electricity costs while maintaining utility oversight through network participation.
4Device complexity
If a single centralized outlet is used for DERs to sell excess power, then utility management is simplified, but consumer flexibility and access to real-time pricing markets are limited
Solution Approach 1:
The patent segments the energy trading function into multiple independent channels through the blockchain network. Instead of forcing all DER transactions through a single centralized utility outlet, the system creates numerous peer-to-peer trading pathways where consumers can simultaneously trade with multiple parties (utilities, other consumers, energy storage operators). This segmentation provides consumers with flexible access to real-time pricing signals and multiple sellers while the modular smart contract architecture allows utilities to manage their participation independently.
Data Source
AI summary
An electricity distribution system includes a peer-to-peer decentralized ledger network and a plurality of distributed ledger nodes in communication within the peer-to-peer decentralized ledger network. At least one distributed ledger node of the plurality of distributed ledger nodes includes a processor that aids in executing peer-to-peer energy and financial transactions between energy suppliers and energy buyers. The processor is programmed to schedule at least one of supply of electricity from one of a plurality of available energy sources to an on-site load based on predetermined demand parameters set by an energy buyer and delivery of electricity generated by a distributed energy resource to an external load based on predetermined supply parameters set by an energy supplier.