Energy Management in Decentralized Network Microgrid Using Smart Contract Fostering a Seamless and Secure Energy Trading Ecosystem

Abstract

The need for effective and secure energy management systems has arisen as a result of increased demand for energy, the increasing use of renewable energy sources (RES), and the introduction of decentralized power generation. Here, we explore the urgent issues and exciting possibilities posed by traditional centralized energy networks, with a special focus on three crucial dimensions: achieving supply-demand equilibrium, seamlessly integrating renewable energy sources, and maintaining participant trust and transparency. This paper suggests leveraging blockchain technology (BT) to create a decentralized network grid energy management system to address these issues. Individual participants can directly exchange energy with one another within the Decentralized Network Grid through peer-to-peer (P2P) trading. The network microgrid model’s mathematical optimization is designed to balance supply and demand, improve network microgrid stability, and optimize energy distribution. The aforementioned optimization uses information from grid constraints, usage patterns, and energy pricing to make wise decisions in real time. The concept aims to achieve energy efficiency, cost savings, and seamless integration of renewable energy sources by utilizing the capabilities of blockchain smart contract and proposed optimization algorithm.