Blockchain-Based Water-Energy Transactive Management with Spatial-Temporal Uncertainties

Pengfei Zhao, Shuangqi Li, Paul Jen Hwa Hu, Chenghong Gu, Shuai Lu, Shixing Ding, Zhidong Cao, Da Xie, Yue Xiang

Research output: Contribution to journalArticlepeer-review

2 Citations (SciVal)
27 Downloads (Pure)


Water resources are vital to the energy conversion process but few efforts have been devoted to the joint optimization problem which is fundamentally critical to the water-energy nexus for small-scale or remote energy systems (e.g., energy hubs). Traditional water and energy trading mechanisms depend on centralized authorities and cannot preserve security and privacy effectively. Also, their transaction process cannot be verified and is subject to easy tampering and frequent exposures to cyberattacks, forgery, and network failures. Toward that end, water-energy hubs (WEHs) offers a promising way to analyse water-energy nexus for greater resource utilization efficiency. We propose a two-stage blockchain-based transactive management method for multiple, interconnected WEHs. Our method considers peer-topeer (P2P) trading and demand response, and leverages blockchain to create a secure trading environment. It features auditing and resource transaction record management via system aggregators enabled by a consortium blockchain, and entails spatial-temporal distributionally robust optimization (DRO) for renewable generation and load uncertainties. A spatial-temporal ambiguity set is incorporated in DRO to characterize the spatial-temporal dependencies of the uncertainties in distributed renewable generation and load demand. We conduct a simulation-based evaluation that includes robust optimization and the moment-based DRO as benchmarks. The results reveal that our method is consistently more effective than both benchmarks. Key findings include i) our method reduces conservativeness with lower WEH trading and operation costs, and achieves important performance improvements by up to 6.1%; and ii) our method is efficient and requires 18.7% less computational time than the moment-based DRO. Overall, this study contributes to the extant literature by proposing a novel two-stage blockchain-based WEH transaction method, developing a realistic spatialtemporal ambiguity set to effectively hedge against the uncertainties for distributed renewable generation and load demand, and producing empirical evidence suggesting its greater effectiveness and values than several prevalent methods.

Original languageEnglish
Pages (from-to)2903-2920
Number of pages18
JournalIEEE Transactions on Smart Grid
Issue number4
Early online date20 Dec 2022
Publication statusPublished - 1 Jul 2023


  • Blockchain
  • Blockchains
  • Costs
  • Optimization
  • Renewable energy sources
  • spatial-temporal ambiguity set
  • two-stage framework
  • Uncertainty
  • Water heating
  • Water resources
  • water-energy nexus

ASJC Scopus subject areas

  • General Computer Science


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