Topology-aware Orchestration of Distributed Energy Resources in Blockchain-enabled Virtual Power Plants

Most Virtual Power Plant (VPP) coordination approaches rely on centralized architectures that assume complete energy system visibility and trusted coordination entities, while neglecting the topology and local grid constraints introduced by high penetration of distributed energy resources (DERs). This paper presents a decentralized VPP orchestration framework that relies on a hierarchical structure to align energy resource aggregation and dispatch, with the grid structure to enable topology-aware coordination. The framework offers an orchestration service based on a tailored genetic optimization algorithm with a multi-objective fitness function addressing energy amount, cost, and topology. DERs are coordinated through a market mechanism in which procurement bids and orders initiate VPPs and offers are aggregated into a tree rooted at the Point of Common Coupling. A blockchain-based coordination layer with smart contracts allows for trustful DERs registration, monitoring, settlement and payment. The orchestration service has insights into grid topology and real-time monitored data and uses a grid topology-aware optimization algorithm to generate the VPP configuration that is enforced through blockchain smart contracts. Evaluation using DERs from a benchmark distribution network demonstrates that the proposed approach can effectively construct VPPs while satisfying multi-criteria objectives, taking advantage of blockchain smart contracts that ensure secure and transparent settlement and verification.