Distributed Ledgers for Energy: Applications for virtual power plants

Abstract

Distributed ledger technology (DLT), commonly referred to as blockchain, is emerging as a transformative technology solution for managing Virtual Power Plants (VPPs), which aggregate distributed energy resources (DERs). Smart contracts are a key feature of DLT that may be leveraged to streamline complex tasks, from resource onboarding to real-time market transactions, ensuring data reliability, interoperability, and transparency. Through adoption of DLT, utilities may enhance operational efficiency and stakeholder trust, creating secure, transparent ledgers of energy information exchanges, controls and transactions accessible to energy providers, consumers, regulators and other system stakeholders.The article provides an overview of the technology features, and an accessible and practical roadmap for integrating DLT into energy systems, outlining key steps from initial planning and transaction selection to deployment. Emphasizing real-world applicability, it illustrates DLT’s pivotal role in modernizing energy grids to meet evolving demands and sustainability goals.