Smart Grid Management using Blockchain: Future Scenarios and Challenges

TL;DR

This paper proposes a layered blockchain-based architecture for smart grid management, enabling secure energy data handling, smart contract enforcement, and integration of computational services, addressing future scenarios like peer-to-peer trading and decentralized management.

Contribution

It introduces a novel layered architecture for blockchain-enabled smart grid management, detailing implementation strategies for future energy scenarios and discussing associated challenges.

Findings

Designed a layered blockchain platform for smart grids

Analyzed implementation of peer-to-peer energy trading

Identified challenges in decentralized energy management

Abstract

Decentralized management and coordination of energy systems are emerging trends facilitated by the uptake of the Internet of Things and Blockchain offering new opportunities for more secure, resilient, and efficient energy distribution. Even though the use of distributed ledger technology in the energy domain is promising, the development of decentralized smart grid management solutions is in the early stages. In this paper, we define a layered architecture of a blockchain-based smart grid management platform featuring energy data metering and tamper-proof registration, business enforcement via smart contracts, and Oracle-based integration of high computational services supporting the implementation of future grid management scenarios. Three such scenarios are discussed from the perspective of their implementation using the proposed blockchain platform and associated challenges: peer to peer energy trading, decentralized management, and aggregation of energy flexibility and operation of community oriented Virtual Power Plants.