A Framework for Fully Decentralized Sealed Bid Double Auction Power Trading In A Multi Microgrid Network using Consortium Blockchains

Abstract

With the increasing integration of distributed energy resources (DERs), microgrids have emerged as a promising solution to enhance energy resilience, local autonomy, and the utilization of renewable energy. As power systems continue to deregulate, centralized grid support is gradually giving way to decentralized clusters of micro-grids that can operate independently of the main grid. In such settings, microgrids must be able to support one another during energy deficits and capitalize on surplus generation through coordinated power exchange. In this context, peer-to-peer energy trading becomes essential. Among trading mechanisms, the sealed-bid double auction is particularly effective due to its transparency and fairness. To eliminate single points of failure and ensure data integrity, a decentralized approach utilizing blockchain is proposed, enabling secure and tamper-proof transactions across independent agents. This work proposes a comprehensive blockchain-based decentralized frame-work for sealed-bid double auction energy trading in multi-microgrid systems. The framework consists of two parts: (1) intelligent, uncertainty-aware decentralized sealed bid creation jointly optimized with battery scheduling within microgrids in a multi-microgrid network, and (2) secure and autonomous determination and execution of peer-to-peer transactions between microgrids of the network. Both parts are implemented through agent-based consortium blockchain architectures. In the first part, each microgrid autonomously generates competitive bids by jointly optimizing its battery schedule and bid strategy under forecast uncertainty. Bid values are influenced by internal battery scheduling, which is handled using a hybrid metaheuristic approach combining Genetic Algorithms (GA) and Simulated Annealing (SA).