Blockchain-Based Gas Auctioning Coupled with a Novel Economic Dispatch Formulation for Gas-Deficient Thermal Plants

Abstract

Inadequate gas supply is partly responsible for the energy shortfall experienced in some energy-poor nations. Favorable market conditions would boost investment in the gas supply sector; hence, we propose a blockchain-based fair, transparent, and secure gas trading scheme that facilitates peer-to-peer trading of gas. The scheme is developed using an Ethereum-based smart contract that receives offers from gas suppliers and bid(s) from the thermal plant operator. Giving priority to the cheapest offers, the smart contract determines the winning suppliers. This paper also proposes an economic dispatch model for gas-deficient plants. Conventional economic dispatch seeks to satisfy electric load demand whilst minimizing the total gas cost of generating units. Implicit in its formulation is the assumption that gas supply to generating units is sufficient to satisfy available demand. In energy poor nations, this is hardly the case as there is often inadequate gas supply and conventional economic dispatch is of little practical value. The proposed economic dispatch model’s objective function maximizes the quantity of available gas and determines the optimal power output of each generating unit. The mathematical formulation is verified using data from the Egbin thermal station which is the largest thermal station in Nigeria and is solved using the General Algebraic Modeling System (GAMS). Obtained results indicate the viability of the novel approach as it results in a net power gain of 35 MW. On the other hand, the smart contract proved effective in accurately selecting winning suppliers and making payment.