This comprehensive article explores the transformative impact of blockchain technology on energy trading risk management systems. The article examines how blockchain addresses critical challenges in data security, transparency, and regulatory compliance within the energy sector. Through detailed analysis of distributed ledger infrastructure, smart contract integration, and cryptographic security measures, the research demonstrates significant improvements in operational efficiency, transaction processing, and risk mitigation. The investigation encompasses automated compliance frameworks, data privacy mechanisms, and scalability solutions, highlighting how blockchain technology enhances market participation while reducing operational costs. The article also evaluates emerging technologies and industry standards, providing insights into future developments that will shape secure and efficient energy trading operations.
Distributed ledger technology (DLT), commonly referred to as blockchain, is emerging as a transformative technology solution for managing Virtual Power Plants (VPPs), which aggregate distributed energy resources (DERs). Smart contracts are a key feature of DLT that may be leveraged to streamline complex tasks, from resource onboarding to real-time market transactions, ensuring data reliability, interoperability, and transparency. Through adoption of DLT, utilities may enhance operational efficiency and stakeholder trust, creating secure, transparent ledgers of energy information exchanges, controls and transactions accessible to energy providers, consumers, regulators and other system stakeholders.The article provides an overview of the technology features, and an accessible and practical roadmap for integrating DLT into energy systems, outlining key steps from initial planning and transaction selection to deployment. Emphasizing real-world applicability, it illustrates DLT’s pivotal role in modernizing energy grids to meet evolving demands and sustainability goals.
Paula Heess, Stefanie Holly, Marc-Fabian Körner, Astrid Nieße · 9 authors
Abstract The need to harness the flexibility of small-scale assets for system stabilization, including redispatch, is growing rapidly with the increasing prevalence of distributed generation, such as photovoltaic systems and heavy loads, in particular heat pumps and electric vehicles. Integrating these resources into the redispatch process presents special requirements: On the one hand, building trust with the owners of such assets requires privacy and a reasonable degree of autonomy and engagement. On the other hand, besides the system’s scalability and robustness, the verifiability and traceability of provided data are essential for grid operators who depend on the reliable provision of redispatch services. To date, research and practice have encountered significant challenges in defining a system that enables the inclusion of decentralized flexibilities while satisfying necessary requirements. To that end, we present a novel conceptual system design that addresses these challenges by combining a multi-agent system (MAS) approach with verifiable information flows through digital self-sovereign identities (SSIs) and Zero-Knowledge-Proofs (ZKPs). Single agents, as edge devices, operate locally and autonomously, respecting customer preferences, while MAS provide the ability to design robust, reliable, and scalable systems. SSI enables agents to manage their data autonomously, while ZKPs are used to protect users’ privacy through selective data disclosure which allows the verification of the correctness of information without disclosing the underlying data. To validate the feasibility of this design, a case study is included to demonstrate the functionality of key sub-processes, such as baseline optimization, aggregation, and disaggregation, in a realistic scenario. This case study, supported by a prototype implementation, provides initial evidence of the concept’s soundness and lays the groundwork for future evaluation through extensive simulations and field testing. Together, the technologies included in the conceptual system design balance full transparency for grid operators with autonomy and data economy for asset owners.
With the use of IoT devices and blockchain technologies, consumers can purchase and sell energy straight from the grid instead of going via retailers. Here, existing research proposed a various model but it has several limitations such as scalability, less optimal, and efficiency. Therefore, this research proposed a novel Decentralized Energy Trading Framework via Block-chain Smart Contracts. Initially, we obtain a dataset, which consists of total incoming energy (from producers), total outgoing energy (to consumers), price for incoming energy, and price for outgoing energy. Then, this research proposed a Concatenate Hash approach, to generate private and public keys to enhance security and efficiency. Following that, this research proposed a Weighted Scoring Technique for energy trading here Deputized Proof of Stake (DPOS) is used to verify the integrity of blocks which increases scalability and efficiency by reducing the number of participants in the consensus process. Then, for energy trading the consumer could calculate a score for each prosumer using a weighted average considering both energy availability and price. Moreover, Profit generating is the primary factor used to encourage customers and buyers to take part in suggested P2P energy trading. Consequently, Income Generation based on an active pricing strategy was proposed by this research. As a result, our proposed approach has less latency, higher throughput, and security.
This article explores the emerging field of blockchain-powered peer-to-peer energy trading and its potential to revolutionize the global energy sector. It examines the fundamental principles of decentralized energy marketplaces, including smart contracts and distributed ledger technology, which enable secure, transparent, and efficient energy transactions. The article highlights key research breakthroughs, such as AI-managed trading platforms that optimize supply and demand in real-time, and presents case studies from pilot projects in Europe, the United States, and Australia. Future innovations, including tokenized energy credits and cross-border renewable energy exchanges, are discussed alongside their potential impact on energy markets. The article also addresses regulatory considerations and strategies for large-scale adoption in both national and international contexts. Long-term implications for sustainability and market transparency are explored, emphasizing blockchain's role in facilitating the transition to renewable energy sources and creating a more open and equitable energy economy. This comprehensive article underscores the transformative potential of blockchain technology in addressing critical challenges in energy distribution, market efficiency, and environmental sustainability.
Damilare Peter Oyinloye, Je Sen Teh, Mohd Najwadi Yusoff
Blockchain technology has been adopted in various sectors including health, energy and agriculture. It functions as a distributed ledger maintained by multiple nodes, relying on consensus protocols to verify transactions and reach agreement. However, conventional protocols like Proof of Work (PoW) and Proof of Stake (PoS) face challenges with scalability and energy efficiency. This paper introduces Proof of Collaborative Contribution (PoCC), a new consensus protocol aimed at encouraging positive network contributions and fostering collaboration. It utilizes a simplified hashing mechanism secured by trusted execution environments (TEEs). As a proof of concept, PoCC is applied to a solar energy generation system, where prosumers are incentivized to offset their energy consumption and feed excess energy back into the grid. Using real-world energy data from AusGrid, our simulations demonstrate that PoCC ensures equitable block leader selection. We also show that PoCC scales well with the number of nodes, consumes significantly less energy than PoW, and is resistant to Sybil and 51% attacks. We also briefly explore other potential applications of PoCC in systems that aim to reward node contributions.
The renewable Energy Certificate (REC) schemes play a crucial role in combating climate change and promoting sustainable living. However, issues such as traceability, lack of transparency, and user awareness limit its effectiveness. The current study aims to address such limitation by proposing a blockchain-based solution for Indonesia's electricity grid which can enhance end-to-end traceability, real-time data access, and tamper-proof records. The methodology encompasses interview with energy stakeholders, blockchain model development, prototyping, and evaluation of its efficacy. Results show that blockchain technology can revolutionize Indonesian REC market by improving security, traceability, and promote stakeholders' trust. The proposed framework addresses current system limitation and introduces a semi-fungible REC token for secure issuance, trading, and verification. Our solution offers a scalable model that can support Indonesia and global green energy adoption and sustainable living.
Blockchain technology (BT) is considered a proven secure platform for financial affairs. However, its applicability as an irrefutable attack-resistive platform for securing peer-to-peer (P2P) networks is a matter of debate among researchers. In this regard, this article concentrates on using the BT for securing fully P2P networks. A new fair and energy-efficient method is presented for consensus achievement in the blockchain layer for fully P2P transactive energy systems. Also, a new product differentiator index is represented in this article for bilateral trading among the agents that is more compatible with the security layer. Finally, a self-adaptive-self-tuning fast alternating direction method of multipliers distributed algorithm is presented to clear the P2P market. Results demonstrate the superiority of the proposed BT's consensus method in terms of fairness and energy efficiency compared to the proof-of-stake and proof-of-work consensus methods and its attack resistivity against Sybil attack and 51% attack.
Abdullah Umar, Sumit Kumar Jha, Deepak Kumar, T. K. Ghose · 5 authors
In isolated microgrids, distributed energy resources (DERs) such as small-scale generators, energy storage systems, and flexible loads operate independently from the main grid. The challenge is to optimize these resources to minimize user costs while ensuring microgrid stability and efficiency. This paper presents an optimization framework for DERs, leveraging a game-theoretical approach to demand-side management (DSM) in an isolated microgrid environment. Each participant aims to minimize their total cost by strategically managing renewable energy generation, storage, and consumption. The framework models the DSM problem as a noncooperative game, identifying equilibrium points where no user can unilaterally reduce costs. The proximal decomposition algorithm is employed to iteratively update user strategies, ensuring convergence to a Nash equilibrium. Furthermore, a blockchain-based system with smart contracts is integrated to automate critical processes, including registration, event detection, DSM actions, and incentive distribution. This integration enhances transparency, security, and efficiency in the microgrid. During the registration phase, all devices are authenticated and authorized through a secure, transparent blockchain ledger. Event detection is managed by the microgrid Energy Management System (EMS), which continuously monitors voltage and frequency levels, triggering predefined smart contract responses to maintain stability. DSM actions are automatically executed by smart contracts, adjusting energy loads, generation, and storage to balance supply and demand dynamically. The smart contracts also manage the economic incentives that drive participant engagement. They calculate and distribute incentives based on predefined criteria, ensuring accurate and prompt allocation. This process is recorded on the blockchain, providing an immutable and auditable trail of actions and rewards. By leveraging blockchain technology and a game-theoretical approach, the proposed framework ensures continuous optimal operation despite fluctuations in energy demand and renewable generation. This dynamic and adaptive model promotes decentralized and efficient energy management within the microgrid, fostering a resilient and sustainable energy ecosystem.
In the past three decades, there has been a sweeping trend in Western and developed countries worldwide to transform the vertically integrated electricity supply chain into competitive electricity markets to diversify investment in the system and ultimately drive down operation costs. Nonetheless, due to some geopolitical and economic reasons, many developing countries adopted a modestly liberalized version of the power market (imperfect market). With the trend of privatization, specifically at the generation level, to leverage the hypothetical competitiveness, countries that did not adopt a full-fledged market structure face a dilemma. The system operators of incumbent imperfect market models find it increasingly difficult to deal with multiple private ownership of Independent Power Producers who are unwilling to share their detailed operational parameters for long-term generation scheduling (lasting for years). In this paper, Blockchain (BC) is being advocated as a platform that simulates a virtual market environment to address such issues. The proposed BC-based structure allows generators to participate in the short-term scheduling mechanism (such as day-ahead) in a trust-free environment without sharing their vital data yet achieving efficient, market-grade solutions. The feasibility of this new proposition is demonstrated through three different application scenarios, utilizing real-world load and renewable generation profiles sourced from the respective Grid System Operators databases. Python library (PYPSA) and Ethereum Testnet are being used for grid simulation and BC platform implementation respectively. The results of BC-assisted generation scheduling are presented and compared with the imperfect market model to highlight the viability of the proposed new approach.
A. M. A. Daiyan Kaif, Khandoker Shahjahan Alam, Sajal K. Das, Guo Chen · 6 authors
A novel architecture for smart meters in a Virtual Power Plant (VPP) is introduced in this research. By integrating blockchain technology, the system not only measures and quantifies diverse consumer data but also facilitates immediate control, hence improving demand responsiveness in a VPP environment. Mathematical models were created to optimize profit, battery reserve, and power balance. A novel transaction and security algorithm that enables peer-to-peer (P2P) transactions in a secure setting is used in conjunction with a power flow algorithm for real time monitoring and control to implement the proposed model. The lightweight characteristics of the algorithms enable faster and more effective computer processing. The unique identifier issued to each smart meter facilitates seamless integration with a blockchain smart contract, therefore enabling improved and secure P2P transactions. An innovative experimental setup demonstrated the framework’s ability to effectively manage energy flows while maintaining seamless wireless connection with the grid and executing transactions. The smart meter demonstrated exceptional efficiency in load management, resulting in an average loss of 1.9524W. A dedicated dapp was created just for this purpose. Through the strategic integration of algorithms and blockchain technology, this framework enhances the efficiency and reliability of the metering infrastructure, while also enabling secure transactions.
Alexander A. Hernandez, Sook Yee Yip, Kam Meng Goh, Arlene R. Caballero · 5 authors
Standalone energy supply system has been in the limelight, especially in rural areas since it can provide cheap electrical supply to the local communities. Energy supply is always a problematic condition in many developing countries that significantly affects progress and inclusive economic development. Furthermore, excess energy generated is wasted due to insufficient battery storage. To confront these recurring problems, peer-to-peer energy resource sharing has emerged as a promising solution, offering a decentralized system and approach to reduce reliance on the grid energy resource. The system enables prosumers to share excess energy with consumers, reducing dependence on grid and lowering the cost of electricity. However, peer-to-peer energy resource sharing is still a relatively new technology in developing countries, especially in rural communities, needing enabling technologies, support, and sustainable policies and financing models. To this end, this study aims to provide comprehensive understanding of the state of the art of peer-to-peer energy resource sharing in rural communities.
Mohammad Amin M. Shabestari, Mohammad Sobhan Sakhaei, Payman Rezaei, Amirhossein Nikoofard
With rapid rise of cryptocurrencies, integrating blockchain into electrical networks has become inevitable. This has led to a notable increase in mining within microgrids, introducing a new type of electrical load. These farms introduce new challenges, such as increasing peak loads, demand fluctuations, and reducing grid reliability. This paper presents a novel framework for managing cryptocurrency mining farms as flexible loads within power grids. A two-stage energy management framework is proposed: the first stage involves day-ahead scheduling to optimize operation cost, mining farm revenue, and reliability, while the second stage provides real-time adjustments every 15 minutes to minimize fluctuation cost. The results demonstrate that the proposed model reduces operation costs by 23.5% compared to unregulated mining loads, while also increasing social welfare by 12.7%. Furthermore, a 40% increase in mining demand leads to a 4.6% improvement in reliability compared to the baseline scenario, emphasizing the effectiveness of the proposed framework.