Case study BEST – Blockchain-based decentralized energy market design and management structures
The energy transition demands decentralised, flexible solutions for electricity trading and grid stability. fortiss and its partner developed AI-driven forecasting models, a pooling platform, and blockchain-based trading systems for regional energy markets. This enables households, SMEs, and utilities to trade electricity efficiently while supporting grid stability and energy democracy.
BEST (Blockchain-based Decentralised Energy Market Design and Management Structures) is a collaborative research project funded by the German Federal Ministry for Economic Affairs and Energy (BMWE). Its mission is to create secure, decentralised energy markets that integrate renewable generation and promote local trading.
Solution
fortiss developed a pooling platform to enable personalised peer-to-peer trading while ensuring user data privacy and informational self-determination. Its AI team created time-series and machine learning-based forecasting models to predict energy consumption and generation accurately. fortiss also designed algorithms optimising bidding strategies to balance residual electricity and maximise economic benefits.
The system was integrated with blockchain-based IBM Food Trust data for verifiable, decentralised transactions and tested in a real-world pilot in Euskirchen involving businesses, households, and public institutions.
Result
- Developed AI-based forecasting models improving consumption and generation predictions
- Designed a pooling platform enabling personalised P2P energy trading with data privacy safeguards
- Created bidding algorithms optimising residual load balancing and trading efficiency
- Implemented blockchain-based trading systems ensuring transparency and security
- Successfully tested regional electricity trading in Euskirchen with real market participants
- Enabled households and SMEs to reduce costs and increase use of local renewable energy, promoting energy democracy and grid stability
Outcome
BEST showed that combining AI forecasting, user-centred pooling platforms, and blockchain technology creates scalable, transparent, and efficient local energy markets. fortiss’ innovative tools enable flexible, decentralised trading models that empower consumers and businesses while supporting a resilient, renewable-based grid infrastructure.
Project partner
