In our current society both the demand for electricity is increasing and the demand for electrical energy as energy carrier is increasing. Renewable sources will play an important role in future energy generation due to societal developments. These distributed energy resources introduce new challenges to our current electrical power system. One of these challenges imposed on our current electrical power system is the introduction of a new grid user, the prosumer, who consumes and produces electrical energy. Another challenge is the intermittent nature of renewable sources such as solar and wind energy. During the past year Blockchain gained momentum as a technology mainly through the evolving industry of cryptocurrencies such as Bitcoin and Ether. Application of the Blockchain to the electrical power system could oer solutions to some of these challenges that the future electrical power system will face. The main goal of this thesis is to identify the opportunities, advantages and technical challenges of applying the Blockchain to the electrical power system. First, as part of the literature study the Blockchain has been studied and the operation of the Blockchain has been analyzed. The Blockchain has been dened as a collective of technologies that can be described as a database, which is distributed among a peer to peer network, combined with securitization elements relying on multiple cryptographic technologies. Second, the opportunities where the Blockchain could be applied in the current electrical power system were identied. In order to study the application of the Blockchain to the electrical power system four case studies have been introduced. These case studies dierentiate themselves in the level of adoption of the Blockchain and the functionality which could be provided to the electrical power system. Ranging from a local peer to peer trading infrastructure to the entire market being operated via the Blockchain with advanced features such as the control of power ows. Third, the various advantages of applying the Blockchain to the electrical power system have been explored based on the proposed case studies. A distinction has been made between advantages which are inherently linked to the characteristics of the Blockchain and the provided functionality to the electrical power system. Fourth, the challenges of applying the Blockchain to the electrical power system have been analyzed and discussed. Based on the dierent case studies a segregation has been made between challenges attributable to the characteristics of the Blockchain and challenges specically linked to the implementation of the case studies. Last, the practical application of the Blockchain to the electrical power system of the dierent case studies have been discussed. Explanation is given how the dierent case studies could be implemented within the electrical power system and what the role will be of dierent parties currently involved within the electrical power system.<br/>
The smart terminal and grid protection devices play a very important role in the safe operation of the smart grid. Traditional maintenance and renewal of the center node wastes a lot of manpower and material resources and have huge safety implications. This paper proposes a safety equipment diagnosis mechanism based on consortium blockchain technology to realize more efficient, convenient, and secure device maintenance. When a device has problems or notices improper operation, it can make a device diagnosis request in the consortium blockchain network, and receive a diagnosis response from a vendor or non-original supplier nodes. This scheme designs a decentralized safety equipment diagnosis smart contract, combining response node bid price and credit, and applies a multi-dimensional reverse auction mechanism to determine bid node and transaction price. After a smart device diagnosed, the relevant message will be packaged and sent to a smartphone, which can use the client to set up the smart contract of equipment operation policy. Paillier encryption arithmetic can be used to ensure device diagnosis mechanism safety. The proposed scheme is guaranteed not to reveal sensitive information in the process of device interaction.
Due to their rapid growth and deployment, Internet of things (IoT) devices have become a central aspect of our daily lives. However, they tend to have many vulnerabilities which can be exploited by an attacker. Unsupervised techniques, such as anomaly detection, can help us secure the IoT devices. However, an anomaly detection model must be trained for a long time in order to capture all benign behaviors. This approach is vulnerable to adversarial attacks since all observations are assumed to be benign while training the anomaly detection model.
Federico Lombardi, Leonardo Aniello, Stefano De Angelis, Andrea Margheri ยท 5 authors
One of the main trends in the evolution of smart grids is transactive energy, where distributed energy resources, e.g. smart meters, develop towards Internet-of-Things (IoT) devices enabling prosumers to trade energy directly among each other, without the need of involving any centralised third party. The expected advantages in terms of cost-effectiveness would be significant, indeed technical solutions are being investigated and large-scale deployment are planned by major utilities companies. However, introducing transactive energy in the smart grid entails new security threats, such as forging energy transactions. This paper introduces an infrastructure to support reliable and cost-effective transactive energy, based on blockchain and smart contracts, where functionalities are implemented as fully decentralised applications. Energy transactions are stored in the blockchain, whose high replication level ensures stronger guarantees against tampering. Energy auctions are carried out according to transparent rules implemented as smart contracts, hence visible to all involved actors. Threats deriving from known vulnerabilities of smart meters are mitigated by temporarily keeping out exposed prosumers and updating their devices as soon as security patches become available.
Electricity is the commonest commodity for most businesses in our world today. The use of electricity has been a breakthrough for the discovery of new technologies and has become the main driving force behind several innovations. With the introduction of smart grid systems, there have been improvements in how utility companies interact with their customers with regards to electricity use. However, since the readings are done via the Internet, there is the tendency for the data to be compromised when it gets into the hands of the wrong people. Moreover, customers mostly do not know why they pay huge amounts and which appliances use more electricity, since they are not privy to the readings. The sovereign blockchain technology, which provides transparency and provenance, is utilized in this paper to mitigate these above mentioned problems. A smart contract, which executes laid down procedures to provide a trust-based system between participants on the network is also implemented. Our system proves very efficient as the user can monitor how the electricity is used, and it also provides a platform where there is no manipulation from either party.
Within the smart grid technology landscape, a broad range of hardware, software, application and communications technologies are at various levels of maturity and deployment. The coordinated implementation of smart grid technologies such as distributed energy storage, communications, control, power electronics, and power system technologies allows the seamless integration of intermittent DG and adds further capabilities to it including controllability and firmness. This chapter examines the potential impact of PEVs on the existing grid, describe methods of using smart grid technologies alleviate foreseen problems, and investigate potential opportunities enhance the performance of the electric grid using PEVs. In the longer term, the aggregation of PEVs will allow them to be integrated more readily into the existing ancillary service command and contracting framework, since the grid system operator needs only directly communicate with the aggregators. The simplest and most effective means for controlling the energy consumption of PEVs is direct utility control of charging times.
The purpose of this paper is to explore applications of blockchain technology related to demand side management of smart grid and to present an example that blockchain is used to facilitate machine-to-machine (M2M) interaction and frame an electricity market in the context of demand request. We use blockchain technology to record data derived from power flow calculation model and electricity price customization, and use smart contract to store transaction data and transfer assets automatically. Firstly, we establish a power flow calculation for microgrid operation system of 34 node master-slave control island, and the power flow is calculated and an optimal generator work adjustment is used. Then, according to the price customization, the participation mode of priced demand response is acquired. The presented scenario includes that a power management system and a generator which can actively adjust the power generation trading with each other over a blockchain. According to flow calculation and price customization, power management system generate smart contracts automatically. The final is that two sides complete the transaction and the load state of grid has been adjusted. This work contributes a proof-of-concept implementation of the scenario. This example verifies the feasibility of the method.
Abstract In the context of current energy Internet, the emergence of a large number of energy productive consumers will create a new business model. In the decentralized electricity market, the cost of traditional centralized solution construction, management and maintenance is too high, and it is difficult to support the collection, transmission, reception, storage and analysis of massive data. To provide a solution to this phenomenon, we apply the blockchain technology to this distributed electricity market to achieve peer to peer transactions in the power systems. The blockchain technology which is very popular nowadays will be used in power system to establish a credible direct transaction between devices. At first, this article analyzes the future direction of the development of power systems, studies the characteristics of decentralized power systems and summarizes the main issues in the development process. Then, we analyze the basic characteristics of blockchain and put forward a new transaction framework in consideration of problems existing in current energy market. The transaction framework is based on the blockchain technology in the distributed electricity market and includes the pricing method, the power transaction system architecture, various modules of the trading system and the details of the whole transaction system runtime. This framework provides a viable solution for increasingly complex energy transactions.
Integrative various distributed generation in energy infrastructure have brought great opportunities in recent years. However, this integration has also led to critical challenges in energy management, such as congestion pricing and non-optimality of dispatch. To address these challenges, deregulation and decentralization of electricity market is one of the effective solutions. Although various deregulation schemes have been proposed in recent years, there still remain some serious challenges in achieving resilient management of real-time energy deregulation especially in the presence of disasters. To counter this issue, in this paper, we propose a model for a Peer-to-Peer (P2P) transactive microgrid where prosumers (Producer/ Consumer) can trade local generation with each other via a smart management system. Furthermore, in our proposed model, the energy trading is executed in a decentralized manner by leveraging Blockchain technologies. Among different Blockchain technologies, we adopt the Ethereum Blockchain in our work. The auction models for energy trading are proposed by incorporating a smart contract that is the essential component of the Blockchain. In our simulations, the proposed P2P energy trading model is evaluated.
Distributed energy resources (DERs) include distributed generations (DGs), distributed energy storages (DESs), and the demand response resources (DRRs). With the increasing penetration of DERs in distribution network, more and more users change from power consumers to prosumers which have great influences on distribution network as well as generate new business models on the demand side. Based on the emerging change of the power system, this paper proposes a transactive energy scheme (TES) based on multi-factor evaluation and contract net protocol to determine energy trading strategies among prosumers to realize economic and stable operation of distribution network. In the proposed TES, a TE market is built in the deregulatory retail power market. Power consumers, smart homes, industrial parks, or virtual power plants with DERs take the initiative as transactive nodes (TNs), and the peer to peer transactions among TNs in TE market can be carried out based on the multi-factor evaluation and contract protocol. When a TN cannot meet its own electricity demand, it launches the contract net to other TNs, requests to carry on the electric energy transaction, and determines the selected TNs according to the multi-factor evaluation. The simulation results show compared with the traditional electricity business model, the market participants who use the proposed TES can gain more economic benefits as well as protecting their own privacy.
Lee Thomas, Chao Long, Pete Burnap, Jianzhong Wu ยท 5 authors
An electricity supply smart contract was developed and demonstrated to perform pre-time-of-use price negotiation between demand and generation and post-time-of-use settlement and payment. The smart contract was demonstrated with 1000 loads/generators with usages simulated using lognormal probability distributions. It combines payment of deposit, negotiation of price based on estimates, settlement based on actual usage and enactment of payments using crypto-currency. The settlement procedure rewards customers that adjusted to balance the system. The smart contract was written in the solidity programming language and implemented with a simulated Ethereum blockchain using testrpc and go-ethereum. In the example test case, a price was agreed, settled and payment enacted.
รron Lรกszka, Abhishek Dubey, Michael Walker, Douglas C. Schmidt
Power grids are undergoing major changes due to rapid growth in renewable energy resources and improvements in battery technology. While these changes enhance sustainability and efficiency, they also create significant management challenges as the complexity of power systems increases. To tackle these challenges, decentralized Internet-of-Things (IoT) solutions are emerging, which arrange local communities into transactive microgrids. Within a transactive microgrid, "prosumers" (i.e., consumers with energy generation and storage capabilities) can trade energy with each other, thereby smoothing the load on the main grid using local supply. It is hard, however, to provide security, safety, and privacy in a decentralized and transactive energy system. On the one hand, prosumers' personal information must be protected from their trade partners and the system operator. On the other hand, the system must be protected from careless or malicious trading, which could destabilize the entire grid. This paper describes Privacy-preserving Energy Transactions (PETra), which is a secure and safe solution for transactive microgrids that enables consumers to trade energy without sacrificing their privacy. PETra builds on distributed ledgers, such as blockchains, and provides anonymity for communication, bidding, and trading.
Transactive microgrids are emerging as a transformative solution for the\nproblems faced by distribution system operators due to an increase in the use\nof distributed energy resources and a rapid acceleration in renewable energy\ngeneration, such as wind and solar power. Distributed ledgers have recently\nfound widespread interest in this domain due to their ability to provide\ntransactional integrity across decentralized computing nodes. However, the\nexisting state of the art has not focused on the privacy preservation\nrequirement of these energy systems -- the transaction level data can provide\nmuch greater insights into a prosumer's behavior compared to smart meter data.\nThere are specific safety requirements in transactive microgrids to ensure the\nstability of the grid and to control the load. To fulfil these requirements,\nthe distribution system operator needs transaction information from the grid,\nwhich poses a further challenge to the privacy-goals. This problem is made\nworse by requirement for off-blockchain communication in these networks. In\nthis paper, we extend a recently developed trading workflow called PETra and\ndescribe our solution for communication and transactional anonymity.\n
As the core of intelligent manufacturing, cyber-physical systems (CPS) have serious security issues, especially for the communication security of their terminal machine-to-machine (M2M) communications. In this paper, blockchain technology is introduced to address such a security problem of communications between different types of machines in the CPS. According to the principles of blockchain technology, we designed a blockchain for secure M2M communications. As a communication system, M2M consists of public network areas, device areas, and private areas, and we designed a sophisticated blockchain structure between the public area and private area. For validating our design, we took cotton spinning production as a case study to demonstrate our solution to M2M communication problems under the CPS framework. We have demonstrated that the blockchain technology can effectively solve the safety of expansion of machines in the production process and the communication data between the machines cannot be tampered with.
Blockchain may help solve several complex problems related to integrity and trustworthiness of rapid, distributed, complex energy transactions and data exchanges. In a move towards resilience, blockchain commoditizes trust and enables automated smart contracts to support auditable multiparty transactions based on predefined rules between distributed energy providers and customers. Blockchain based smart contracts also help remove the need to interact with third-parties, facilitating the adoption and monetization of distributed energy transactions and exchanges, both energy flows as well as financial transactions. This may help reduce transactive energy costs and increase the security and sustainability of distributed energy resource (DER) integration, helping to remove barriers to a more decentralized and resilient power grid. This paper explores the application of blockchain and smart contracts to improve smart grid cyber resiliency and secure transactive energy applications.
Blockchain may help solve several complex problems related to securing the integrity and trustworthiness of rapid, distributed, complex energy transactions and data exchanges. In a move towards grid resilience, blockchain commoditizes trust and enables automated smart contracts to support auditable multiparty transactions based on predefined rules between distributed energy providers and customers. Blockchain based smart contracts also help remove the need to interact with third-parties, facilitating the adoption and monetization of distributed energy transactions and exchanges, both energy flows as well as financial transactions. This may help reduce transactive energy costs and increase the security and sustainability of distributed energy resource (DER) integration, helping to remove barriers to a more decentralized and resilient power grid. This paper explores the application of blockchain and smart contracts to improve smart grid cyber resiliency and secure transactive energy applications.
If, as most experts agree, the mathematical basis of major blockchain systems is (probably if not provably) sound, why do they have a bad reputation? Human misbehavior (such as failed Bitcoin exchanges) accounts for some of the issues, but there are also deeper and more interesting vulnerabilities here. These include design faults and code-level implementation defects, ecosystem issues (such as wallets), as well as approaches such as the "51% attack" all of which can compromise the integrity of blockchain systems. With particular attention to the emerging non-financial applications of blockchain technology, this paper demonstrates the kinds of attacks that are possible and provides suggestions for minimizing the risks involved.
We present an architecture for peer-to-peer energy markets which can guarantee that operational constraints are respected and payments are fairly rendered, without relying on a centralized utility or microgrid aggregator. We demonstrate how to address trust, security, and transparency issues by using blockchains and smart contracts, two emerging technologies which can facilitate decentralized coordination between non-trusting agents. While blockchains are receiving considerable interest as a platform for distributed computation and data management, this is the first work to examine their use to facilitate distributed optimization and control. Using the Alternating Direction Method of Multipliers (ADMM), we pose a decentralized optimal power flow (OPF) model for scheduling a mix of batteries, shapable loads, and deferrable loads on an electricity distribution network. The DERs perform local optimization steps, and a smart contract on the blockchain serves as the ADMM coordinator, allowing the validity and optimality of the solution to be verified. The optimal schedule is securely stored on the blockchain, and payments can be automatically, securely, and trustlessly rendered without requiring a microgrid operator.
This paper proposes an innovative Bitcoin-style distributed transactional model, โBit-Energy,โ to enable transparent, auditable, and peer-to-peer energy transactions between active market participants directly without a central intermediary (e.g., distribution system operator) using radically different Internet-of-Things (IoT) technologies. The proposed distributed platform is fully compatible with the existing distribution grid infrastructure. Case studies demonstrate the accuracy, robustness, effectiveness, and scalability of the proposed Bit-Energy platform under various operating conditions. The distributed platform contained in this paper can apply to many other smart grid applications.