Blockchain Design and Implementation for Decentralized Optimal Power Flow

We consider decentralized Energy Markets whose underlining power grid topology consists of generators, consumers, and transmission lines, and which is divided into regions. In the absence of a central System Operator, the Market Location Prices should be computed with coordination between the regions. The local regions perform local Optimal Power Flow (OPF) steps which are subsequently clued together with respect to certain operational constraints using the Alternating Direction Method of Multipliers (ADMM). This problem leads itself to a decentralized coordination problem and the Blockchain Technology seems to be its proper and effective backbone. The regions communicate through an Ethereum distributed application (dApp). The Proof of Authority (PoA) consensus algorithm is used, and blocks are created when an optimal global solution has been found. The integration of the Blockchain Technology in the ADMM algorithm is the main contribution of this paper.