The broader impact/commercial potential of this Small Business Innovation Research (SBIR) project addresses one of the largest problems facing the aging U.S. power grid: integrating distributed energy assets to proactively supply clean energy to the electricity grid to supplant peak power derived from expensive fossil-fuel generators. The proposed innovation, a blockchain-enabled "Virtual Power Plant" (VPP) network that autonomously aggregates power from distributed energy assets, will allow retail consumers to sell excess power (derived from clean energy) to promote decentralization without sacrificing grid stability, with potential for saving upwards of $10 B/year on transmission and distribution losses alone. This innovation fosters a sustainable value proposition to the entire grid ecosystem, while enabling the utility and/or grid operator to maintain observability, retain grid control, and obviate regulatory hurdles that other grid modernization efforts may encounter. The further benefits of a blockchain-based VPP are inherent cybersecurity, full transparency over how much electricity comes from renewable sources, as well as an immutable record of how much energy is stored/available in Behind-the-Meter systems at any given time. This SBIR Phase I project proposes to create a distributed ledger for grid-tied Distributed Energy Resources (DERs), wherein the blockchain environment establishes a transactive energy marketplace, designed for drop-in readiness for interoperability with commercially-installed infrastructure. The core objectives are to: i) build the database comprising operational data from power electronics components representative of the nearly 2 million residential solar installations in the US; ii) develop the energy tokens that are ascribed to the energy unit data from the database; and develop the smart contract framework to effectuate the transactive energy marketplace, where rules can be implemented to enable customers to participate in the $35.9 B market for demand-response services (2025 estimate). The database and transactive energy environment will be designed such that Phase II efforts surrounding data analytics to maximize the value of grid services revenue streams, as well as AI-driven optimization of aggregation mechanisms and energy utilization, can drive the enterprise value of the solution. An open-source private, permissioned blockchain architecture will be leveraged for Phase I efforts, such that the work can focus on designing a concept demonstrates that emulates transactive energy environments, to refine the value proposition under various scenarios for market validation and driving customer acquisition. This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.
