Privacy and Auditability in the Local Energy Market of an Energy Community with Homomorphic Encryption
Abstract
:1. Introduction
2. European and Swiss Regulatory Context
2.1. Energy Communities
- Metering and billing is the responsibility of the ZEV, which is free to choose its own hardware and billing procedures, subject only to generic law requirements;
- The ZEV is in charge of the distribution of electricity inside the ZEV itself, and therefore ownership and operation are separated from the rest of the distribution grid.
2.2. Open Participation and Data Protection
3. The LIC Energy Community
3.1. Motivation
- Evaluate the needs and requirements to the realization of LIC in a real environment. Provide recommendations on how to allow and facilitate the replicability and scalability of peer-to-peer SCCs.
- Assess blockchain as a decentralized billing management method introduced by the utility.
- Compare centralized vs. decentralized load management methods from the DSO point of view (grid costs), from both an energy consumption and economic standpoint.
- Help to assess the local flexibility potential and the different technical means in which it could be exploited.
- Evaluate the degree of knowledge, acceptance, and willingness to participate in a SCC among the community stakeholders.
3.2. Hardware
4. Blockchain-Based Market Implementation
Development and Deployment
5. Electricity Market
- A fair redistribution of money among the market players, according to their contribution to the market’s intended outcome;
- Variance reduction in the aggregated power profile;
- Compatibility with the current legal energy billing framework, considering both produced and consumed energy in a given time slot;
- Promotion of self-consumption at the community level, while retaining the ability to steer the overall power profile at the will of a third party (administrator).
- The energy consumed from the external grid shall be paid for as if the consumer were not part of the community;
- The energy consumed from inside the community is paid for at a total price lower than the standard tariff of the energy supplier and DSO, with a discount proportional to the ratio of the total produced and consumed energy;
- The energy injected into the external grid shall be remunerated as if the consumer were not part of the community;
- The energy injected that is consumed inside the community is remunerated at a price higher than the standard tariff of the energy supplier, with a discount proportional to the ratio of the total consumed and produced energy;
- The self-consumed energy is equally split among the community members proportionally to their consumption and production;
- The instantaneous buying and selling prices are dynamic, but for a given time slot, they are the same for everyone;
- The difference between the community buying and selling prices covers the cost to set up, operate, and maintain the community infrastructure.
6. Full Anonymization of Participants
6.1. Homomorphic Encryption Protocol
- The admin updates the list of the participants to the aggregation round and broadcasts it. With this information, each agent will be able to know when it has received all the information broadcast by the other participants at each step, so that it knows when to proceed with the following step.
- Each participant decides on a “vote” to express, that is, a private integer value .
- Each participant selects a random integer value , and therefore a . The value , termed registration key, is broadcast.
- Each participant can reconstruct a list of keys, one for each participant i, with the following formula: . Notice that the calculation of requires the knowledge of the registration keys of all the other participants. Being calculated by repeated multiplication or inversion of elements of G, is still an element of G, and is therefore representable as . The above formula ensures structurally that .
- Each voter broadcasts their hashed vote .
- The aggregated value can be calculated by every participant or observer.
- Since , by product associativity and therefore the aggregated value can be retrieved by solving the discrete logarithm equation by exhaustive search.
6.2. Overhead Analysis
6.3. Deployment
6.4. Applicability of the Protocol
7. Conclusions and Future Work
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
Abbreviations
AEM | Azienda Elettrica di Massagno |
AMM | Automated Market Making |
BFT | Byzantine-Fault-Tolerant |
CEC | Citizen Energy Community |
CEP | Clean Energy Package |
CPU | Central Processing Unit |
DDH | Decisional Diffie–Hellman (assumption) |
DSO | Distribution System Operator |
EC | Energy Community |
EU | European Union |
FADP | Federal Act on Data Protection |
GDPR | General Data Protection Regulation |
IoT | Internet of Things |
LEM | Local Energy Market |
LIC | Lugaggia Innovation Community |
POD | Point of Delivery |
PoS | Proof of Stake |
PV | Photovoltaic |
REC | Renewable Energy Community |
RES | Renewable Energy Sources |
SCC | Self Consumption Community |
V2G | Vehicle-to-Grid |
VPN | Virtual Private Network |
ZEV/RCP | Zusammenschluss zum Eigenverbrauch |
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Strepparava, D.; Rosato, F.; Nespoli, L.; Medici, V. Privacy and Auditability in the Local Energy Market of an Energy Community with Homomorphic Encryption. Energies 2022, 15, 5386. https://doi.org/10.3390/en15155386
Strepparava D, Rosato F, Nespoli L, Medici V. Privacy and Auditability in the Local Energy Market of an Energy Community with Homomorphic Encryption. Energies. 2022; 15(15):5386. https://doi.org/10.3390/en15155386
Chicago/Turabian StyleStrepparava, Davide, Federico Rosato, Lorenzo Nespoli, and Vasco Medici. 2022. "Privacy and Auditability in the Local Energy Market of an Energy Community with Homomorphic Encryption" Energies 15, no. 15: 5386. https://doi.org/10.3390/en15155386