Energy Trading Platforms for Isolated and Inter-connected Microgrids Utilizing Adapted Blockchain

The rapid increase in microgrid technology development has led to a decentralized yet interconnected system that is highly flexible and dynamic. This will change the planning and operational strategies from being grid-connected microgrids (MGs) that switch to islanded mode only during abnormal conditions (i.e., faults) to being sustainable self-adequate MGs that are designed to maintain secure and reliable operation at all times. Moreover, the tremendous increase in the development of energy storage systems, coupled with the continuous decrease in storage costs, makes it much more technically and economically viable for MGs to operate within these new system boundaries. This development entails advancements in the operation, protection, and energy management of MGs. One of the crucial motivations for this thesis is establishing an energy trading platform that leverages these new trends in microgrid technology. The novel trading platform should be efficient, reliable, swift, scalable, fair, transparent, and executable. Current MGs lack the appropriate energy trading mechanisms to enable all microgrid participants to trade energy securely and swiftly. Fortunately, flourishing blockchain technology represents a feasible and reliable solution to facilitate this market while maintaining the aforementioned market characteristics at no third-party costs. Recently, energy trading in the active distribution system of Distributed Generation (DG) units that are dispatchable and renewable is gaining significant attention from utilities and regularities. The concept of transactive energy based on blockchain technology has been introduced to the electricity industry to enable more flexibility, including higher penetration of renewable energy. However, in this new decentralized market paradigm for MGs and active distribution systems, some serious challenges need to be further investigated by answering the following fundamental questions: Who will be allowed to participate in the market? Who is responsible for operating the market? Who will be responsible for system reliability and security? Who will be responsible for setting the price and for determining how interconnected markets will interact? In addition to finding robust answers to these questions, another significant challenge in the new market paradigm is developing a business model for utilities that preserves their interests. This research aims to provide a coherent framework for a novel energy trading paradigm. First, existing blockchain technology is adapted, modified, and integrated with the market model so that during unconfirmed transactions, the credit hold will allow participants with/without historical credibility to join the market. This approach will enable any entity in the MG to participate by offering or requesting energy. Next, a new centralized-based energy trading platform is developed to facilitate energy trading among the interconnected MGs. This platform is formulated for the MGs participating in a restricted centralized distribution system. Finally, a decentralized sequential-based energy trading platform is introduced in this thesis to enable independent energy trading in the distribution system. The proposed energy trading platform is structured in a blockchain-based modular fashion and can be extended to include numerous MGs