Energy Trading in Microgrids using BlockChain Technology

Abstract

Over the past decades, the concept of embedded energy production popularly known as microgrids is getting implemented in a wider range due to numerous benefits which include flexibility, efficiency, improved stability, and cost-effectiveness. Opportunities for microgrids in the electricity market are becoming higher these days due to which consumers are now becoming prosumers. Energy trading in microgrids happens in peer to peer manner where there is a need for third-party involvement. To eliminate this involvement, a technology is needed to make the entire system a decentralized one which is "Blockchain". In this paper, a systematic review is conducted on how blockchain technology can be implemented in the energy sector for mitigating the issues and how peer to peer energy trading happens in the microgrids thereby smart contracts are created for purpose of P2P energy trading using solidity tool.