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

Abstract

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