Building the internet of energy infrastructure: The Distributed Ledger Technologies approach

Abstract

The drawbacks of the current centralized energy market render it necessary that a decentralized architecture - consisting of entities such as microgrids, utility companies, financial institutions, and consumers- is developed. Distributed Ledger Technologies (DLT) provide an immutable, tamper-proof and secure way of automating and recording complex transactions. They can be used in conjunction with smart energy meters to create collaborative economy business models in energy, thus, energy production and consumption measurements can be authenticated in a secure way and the optimal balance between supply, demand and their pricing can be achieved. Moreover, the decentralized structure of blockchain enables business processes to become automated via smart contracts and decentralized applications, contributing to a viable energy market. This study attempts to technically evaluate different startup approaches in the Decentralized Energy Internet domain, review their current progress in engineering, security, regulatory and societal aspects, and examine their future challenges and the potential of using a Unified and Adaptable Model.