Blockchain and Smart Contracts for Energy Storage Optimization: A Review of Trends and Challenges

Abstract

Achieving global sustainability goals requires integrating renewable energy sources (RES) into the electrical grid, but their intermittent nature poses challenges to grid stability and supply-demand balance. Energy storage systems (ESS) offer a solution, yet their deployment remains complex and costly. This study proposes an optimized conceptual model for ESS placement using blockchain-powered smart contracts to automate decentralized energy trading. The research methodology involves a comprehensive literature review and the development of a conceptual model for optimal storage placement. A thorough examination of the literature and the creation of a conceptual model for optimal storage location serve as the foundation of the research approach. Smart contracts are proposed to enhance energy trading and storage management with transparency and efficiency. Energy trading and storage management will be automated through the design and implementation of smart contracts. Expected outcomes include improved grid reliability, lower operating costs, and greater integration of renewable energy sources. A decentralized energy market is made possible by the model’s use of blockchain technology, which allows producers and consumers to exchange energy directly without the need for centralized utilities. This study advances blockchain applications in energy, offering innovative solutions and insightful information to grid operators, policymakers, and market participants, fostering a more sustainable and efficient electricity grid.