Blockchain for smart grid

Abstract

The demand for electricity increases rapidly along with the advancement of the industrial age. To ensure efficient distribution of the electricity, maintain low losses and high level of quality, and the security of electricity supply, the smart grid concept was proposed. The concept enables a small, individual scale to generate electricity and sell it to the grid. However, the concept adds complexity to the existing system, such as how a transaction between these generators and consumers are conducted, verified and recorded. This paper proposes the blockchain as a tool to manage transactions in the smart grid. Transactions are performed with smart contracts, and the network acts as a transaction verifier. The blockchain provides immutability of the transactions, which ensure every transaction between generators and consumers will always be executed. It also provides immutability to transaction history, which can be used for audit or solving a transaction dispute.