Providing Privacy, Safety, and Security in IoT-Based Transactive Energy Systems using Distributed Ledgers

TL;DR

This paper introduces PETra, a blockchain-based system that ensures privacy, safety, and security in decentralized transactive energy microgrids by enabling anonymous energy trading among prosumers.

Contribution

It presents PETra, a novel privacy-preserving energy transaction framework utilizing distributed ledgers to secure and anonymize trades in IoT-based transactive energy systems.

Findings

PETra enables anonymous energy trading among prosumers.

The system protects personal data while maintaining grid stability.

It leverages blockchain technology for secure transactions.

Abstract

Power grids are undergoing major changes due to rapid growth in renewable energy resources and improvements in battery technology. While these changes enhance sustainability and efficiency, they also create significant management challenges as the complexity of power systems increases. To tackle these challenges, decentralized Internet-of-Things (IoT) solutions are emerging, which arrange local communities into transactive microgrids. Within a transactive microgrid, "prosumers" (i.e., consumers with energy generation and storage capabilities) can trade energy with each other, thereby smoothing the load on the main grid using local supply. It is hard, however, to provide security, safety, and privacy in a decentralized and transactive energy system. On the one hand, prosumers' personal information must be protected from their trade partners and the system operator. On the other hand, the system must be protected from careless or malicious trading, which could destabilize the entire grid. This paper describes Privacy-preserving Energy Transactions (PETra), which is a secure and safe solution for transactive microgrids that enables consumers to trade energy without sacrificing their privacy. PETra builds on distributed ledgers, such as blockchains, and provides anonymity for communication, bidding, and trading.