How the blockchain enables electric vehicles to balance grid power loads

Learn how The Blockchain Xdev in conjonction with IRT SystemX federated big names of the energy industry to build a decentralized energy marketplace on a blockchain platform

Meet our experts

“This project demonstrates the benefits of blockchain technology in the implementation of a local energy trading solution integrating the electric vehicle”

Kei Brousmiche
Head of R&D The Blockchain Xdev

Number-one producer and supplier of electricity in France and Europe, number-two producer of electricity worldwide

Valeo is an automotive supplier and partner of all carmakers worldwide. Its innovative systems and technologies support autonomous, connected mobility

The challenge

How to help electric vehicle owners and individuals who produce electricity trade energy efficiently?

The outcome

A working prototype to demonstrate the benefits and a digital simulator to help communities explore the different scenarios of energy feed-in and use

The solution

A decentralized energy marketplace implemented on blockchain-based platform

Growing concern over environmental issues push the energy market towards green energy and decentralized production. Consumers equipped with renewable energy production means, such as domestic solar panels, are able to sell their self-produced energy locally.

Renewable energy production and a household’s consumption are variable by nature, and often do not match. With the emergence of new vehicle-to-grid (i.e. V2G) technologies, electric vehicles appear as a solution to store, transport and distribute energy smoothing energy balance and increasing the autonomy of these individual producers.

Today’s challenges

P2P energy marketplaces are a first step towards effective re-allocation of energy, yet they have limitations:

  • EV owners can’t sell energy surplus to the power grid;
  • Individual power producers have limited possibilities to sell their excess energy production;
  • Energy aggregators have the obligation to buy back energy surplus, resulting in negative economic impact;

On the road to redistribution

Our solution adds vehicle-to-blockchain capability to a decentralized local energy marketplace. This shifts the energy balance of individual electricity producers because storage capacity is added to the marketplace.

Charge and share

Economic incentives encourage behaviors that are beneficial to all:

  • EV owners are encouraged to store energy when renewable power production is high, then sell the surplus energy back to the grid. This eliminates intermittency of renewal power.
  • EV drivers are also invited to charge their battery at night when demand is low, then give the surplus energy accumulated back to the grid during peak hours at higher prices.

As a result, the boosted power grid benefits to all:

  • EV owners get extra revenues by selling their accumulated energy to the grid;
  • Individual producers can sell their surplus energy to electric car owners, who have different energy needs;
  • Production & consumption balance is smoother, meaning that energy aggregators have less requirements to buy excess production;

Navigating around bumps and potholes

In the course of developing the system, we tackled several challenges:

  • V2G and local marketplace promotion ​: via a playful demo, we highlighted the benefits of such capabilities for end-users, municipalities and the environment;
  • Multi-agent simulation to assess economic viability​: to simulate the community with its households and EVs, we created a simulator based on the multi-agent paradigm, suited to distributed architectures such as Blockchain. The simulation performs an analysis of the economic gain provided by the solution in different scenarios (e.g. the number of EVs, their battery capacity, the number of households, etc.).
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