Consumer-centric decarbonization framework using Stackelberg game and Blockchain

Hua, Weiqi; Jiang, Jing; Sun, Hongjian; Teng, Fei; Strbac, Goran

Abstract

Energy policy is too often not designed for energy consumers in a low-cost and consumer-friendly manner. This paper proposes a novel Stackelberg game and Blockchain-based framework that enables consumer-centric decarbonization by automating iterative negotiations between policy makers and consumers or generators to reduce carbon emissions. This iterative negotiation is modeled as a Stackelberg game-theoretic problem, and securely facilitated by Blockchain technologies. The policy maker formulates carbon prices and monetary compensation rates to dynamically incentivize the carbon reduction, whereas consumers and generators schedule their power profiles to minimize bills and maximize profits of generation, respectively. The negotiating agreement is yielded by reaching a Stackelberg equilibrium. The exchanged information and controlling functions are realized by using smart contracts of Blockchain technologies. Case studies of GB power systems show that the proposed framework can incentivize 9% more bill savings for consumers and 45.13% more energy generation from renewable energy sources. As a consumer-centric decarbonization framework, it can at least reduce carbon emissions by 40%.

Citation

Hua, W., Jiang, J., Sun, H., Teng, F., & Strbac, G. (2022). Consumer-centric decarbonization framework using Stackelberg game and Blockchain. Applied Energy, 309, Article 118384. https://doi.org/10.1016/j.apenergy.2021.118384

• Journal Article Type: Article
• Acceptance Date: Dec 10, 2021
• Online Publication Date: Jan 7, 2022
• Publication Date: Mar 1, 2022
• Deposit Date: Dec 10, 2021
• Publicly Available Date: Jan 7, 2023
• Journal: Applied Energy
• Print ISSN: 0306-2619
• Electronic ISSN: 1872-9118
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 309
• Article Number: 118384
• DOI: https://doi.org/10.1016/j.apenergy.2021.118384
• Public URL: https://durham-repository.worktribe.com/output/1222237