Blockchain Implementation in Smart Grids

Abstract

As the proportion of renewable energy sources in the energy system rises, new market approaches are needed to pricing and distribute the unsteady and dispersed generation. Markets for locally generated renewable energy that are decentralized and accessible to consumers and prosumers create a virtuous cycle of supply and demand. We provide a complete model of a local energy market serving 100 houses, including an explanation of how the market works and a simulation of how it might function. In order to highlight the decentralized character of regional energy markets, our approach is predicated on a distributed ledger system, sometimes known as a private blockchain. As a consequence, we give end-users and prosumers of energy a decentralized marketplace where they may trade locally produced energy directly with one another. We also present a preliminary economic assessment of the market mechanism and an agenda for further research into the technological assessment of blockchain technology as the principal information and communication technology for the local energy market.