This paper introduces a novel IoT-Enhanced Virtual Power Plant (VPP) framework that integrates edge-fog computing, blockchain-secured communication, and AI-driven market mechanisms to optimize energy management in smart grids. The proposed system addresses critical challenges in traditional VPPs including high latency (> 500ms), cybersecurity vulnerabilities (68% of grids report IoT risks), and low user engagement (< 30% adoption). Our framework achieves sub-50ms response times through hybrid edge-fog computing, resolves 94% of security vulnerabilities via blockchain consensus, and increases user participation by 116% through personalized demand response. Extensive simulations using real-world datasets from Pecan Street and prototype deployment with 120 IoT-connected distributed energy resources (DERs) demonstrate 23.1% improvement in energy efficiency, 17.3% cost reduction for end-users, and 142.3% return on investment over five years. The system integrates vehicle-to-grid (V2G) technology, achieving 25% better renewable energy utilization while maintaining grid stability. Implementation using open-source platforms (OpenEMS, GridLAB-D) ensures scalability up to 10,000 + DERs with modular architecture supporting community-driven innovation.
Uddin et al. (Wed,) studied this question.