Compensation for Power Loss by a Proof-of-Stake Consortium Blockchain Microgrid

Distributed generation in the microgrid becomes increasingly significant, as it eliminates the power losses from long-distance electricity transmission lines. Distributed energy resources owners who can both produce and consume energy are defined as prosumers. To encourage the peer-to-peer (P2P) energy trading between prosumers, blockchain as a thriving technology is utilized in the P2P network due to its transparency, security, and rapidity in executing transactions. Due to its decentralized quality, any intermediaries are eliminated so that transactions happen directly among traders. This article introduces a consortium blockchain trading model to support P2P energy trading, using a proof-of-stake protocol. The pre-selected miners are responsible for compensating the power losses in distribution lines by energy transactions. The specific process of the blockchain establishment, as well as the smart contract creation, are demonstrated. In addition, a type of crypto-currency named "elecoin" is created in the P2P market, which is published by the mining mechanism of the blockchain. Finally, a case study is introduced to realise the functions of the proposed blockchain model. Simulation results show the feasibility and effectiveness of the proposed approach.