Skip to main content
Springer Nature Link
Log in

On the Application of Blockchain Technology in Microgrids

  • Conference paper
  • First Online:
Dependable Computing – EDCC 2024 Workshops (EDCC 2024)

Part of the book series: Communications in Computer and Information Science ((CCIS,volume 2078))

Included in the following conference series:

  • 299 Accesses

Abstract

To further integrate renewable energy resources into the electricity grids, increasing the consumption of locally produced electricity is one of the key solutions to reduce the operational cost of the future energy system. Therefore, the local and intelligent principles of microgrids in which users can directly exchange energy with other local users via peer-to-peer energy trading functionalities for flexible energy management are of paramount importance. Regarding peer-to-peer energy trading, setting up a virtual trading network for users can be realised via several communication and database mechanisms, in which the focus of the current work is on the application of the blockchain technology. This article aims to shed a light on the required actions and implementation efforts such as pricing mechanisms, privacy constraints, scalability and on the required overarching energy management system. By overviewing the available literature on the application of blockchain technology, this article also aims to provide a critical view on the applicability of this particular technology for peer-to-peer energy trading purposes.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Subscribe and save

Springer+ Basic
$34.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  1. Strategy EU: Communication RW Policy priorities for the fit for 55 package. 32:23643001178–02

    Google Scholar 

  2. European Commission: European Green Deal. In: 52019DC0640 (2019). https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1588580774040&uri=CELEX:52019DC0640

  3. Zia, M.F., Benbouzid, M., Elbouchikhi, E., Muyeen, S.M., Techato, K., Guerrero, J.M.: Microgrid transactive energy: review, architectures, distributed ledger technologies, and market analysis. IEEE Access 8, 19410–19432 (2020). https://doi.org/10.1109/ACCESS.2020.2968402

    Article  Google Scholar 

  4. Huang, Q., et al.: A review of transactive energy systems: concept and implementation. Energy Rep. 7, 7804–7824 (2021). https://doi.org/10.1016/j.egyr.2021.05.037

    Article  Google Scholar 

  5. Thukral, M.K.: Emergence of blockchain-technology application in peer-to-peer electrical-energy trading: a review. Clean Energy 5, 104–123 (2021). https://doi.org/10.1093/ce/zkaa033

    Article  Google Scholar 

  6. Woodhall, A.: How Blockchain can Democratize Global Energy Supply. Elsevier Inc. Amsterdam (2018)

    Google Scholar 

  7. Wang, J., Wang, Q., Zhou, N., Chi, Y.: A novel electricity transaction mode of microgrids based on blockchain and continuous double auction. Energies (Basel) 10, 1–22 (2017). https://doi.org/10.3390/en10121971

    Article  Google Scholar 

  8. Mengelkamp, E., Gärttner, J., Rock, K., Kessler, S., Orsini, L., Weinhardt, C.: Designing microgrid energy markets: a case study: The Brooklyn Microgrid. Appl. Energy 210, 870–880 (2018). https://doi.org/10.1016/J.APENERGY.2017.06.054

    Article  Google Scholar 

  9. Ahl, A., Yarime, M., Tanaka, K., Sagawa, D.: Review of blockchain-based distributed energy: implications for institutional development. Renew. Sustain. Energy Rev. 107, 200–211 (2019). https://doi.org/10.1016/j.rser.2019.03.002

    Article  Google Scholar 

  10. Evens, M., Ercoli, P., Arteconi, A.: Blockchain-Enabled Microgrids: Toward Peer-to-Peer Energy Trading and Flexible Demand Management (2023). https://doi.org/10.3390/en16186741

  11. Hu, J., Reed, M.J., Al-Naday, M., Thomos, N.: Hybrid Blockchain for IoT-Energy Analysis and Reward Plan (2021). https://doi.org/10.3390/s21010305

  12. Baqer Mollah, M., et al.: Blockchain for future smart grid: a comprehensive survey. IEEE Internet Things J. 8 (2021). https://doi.org/10.1109/JIOT.2020.2993601

  13. Kirli, D., et al.: Smart contracts in energy systems: a systematic review of fundamental approaches and implementations. Renew. Sustain. Energy Rev. 158, 112013 (2022). https://doi.org/10.1016/j.rser.2021.112013

    Article  Google Scholar 

  14. Hasankhani, A., Mehdi Hakimi, S., Shafie-khah, M., Asadolahi, H.: Blockchain technology in the future smart grids: a comprehensive review and frameworks. Int. J. Electr. Power Energy Syst. 129, 106811 (2021). https://doi.org/10.1016/J.IJEPES.2021.106811

    Article  Google Scholar 

  15. Andoni, M., et al.: Blockchain technology in the energy sector: a systematic review of challenges and opportunities. Renew. Sustain. Energy Rev. 100, 143–174 (2019). https://doi.org/10.1016/j.rser.2018.10.014

    Article  Google Scholar 

  16. Hrga, A., Capuder, T., Zarko, I.P.: Demystifying distributed ledger technologies: limits, challenges, and potentials in the energy sector. IEEE Access 8, 126149–126163 (2020). https://doi.org/10.1109/ACCESS.2020.3007935

    Article  Google Scholar 

  17. Tushar, W., et al.: Peer-to-peer energy systems for connected communities: a review of recent advances and emerging challenges. Appl. Energy 282 (2021). https://doi.org/10.1016/j.apenergy.2020.116131

  18. Suthar, S., Pindoriya, N.M.: Blockchain and smart contract based decentralized energy trading platform. In: 2020 21st National Power Systems Conference, NPSC 2020 (2020). https://doi.org/10.1109/NPSC49263.2020.9331883

  19. Condon, F., Martinez, J.M., Kim, Y.C., Ahmed, M.A.: EnergyAuction: oracle blockchain-based energy trading system for microgrids. In: IEEE Conference on Power Electronics and Renewable Energy, CPERE 2023, pp. 1–6 (2023). https://doi.org/10.1109/CPERE56564.2023.10119578

  20. Caldarelli, G.: Overview of blockchain oracle research. Future Internet 14 (2022). https://doi.org/10.3390/fi14060175

  21. Tushar, W., Saha, T.K., Yuen, C., Smith, D., Poor, H.V.: Peer-to-peer trading in electricity networks: an overview. IEEE Trans Smart Grid 11, 3185–3200 (2020). https://doi.org/10.1109/TSG.2020.2969657

    Article  Google Scholar 

  22. Next: What is OTC trading? (2023). https://www.next-kraftwerke.com/knowledge/what-is-otc-trading. https://www.next-kraftwerke.com/knowledge/what-is-otc-trading. Accessed 27 Aug 2023

  23. Gajic, D.B., Petrovic, V.B., Horvat, N., Dragan, D., Stanisavljevic, A., Katic, V.: Blockchain-based smart decentralized energy trading for grids with renewable energy systems. In: 2021 21st International Symposium on Power Electronics (Ee), pp. 1–7. IEEE (2021)

    Google Scholar 

  24. Raja, A.A., Grammatico, S.: Bilateral peer-to-peer energy trading via coalitional games. IEEE Trans. Industr. Inform. 19, 6814–6824 (2023). https://doi.org/10.1109/TII.2022.3196339

    Article  Google Scholar 

  25. Sorin, E., Bobo, L., Pinson, P.: Consensus-based Approach to Peer-to-Peer Electricity Markets with Product Differentiation

    Google Scholar 

  26. Moret, F., Pinson, P.: Energy collectives: a community and fairness based approach to future electricity markets. IEEE Trans. Power Syst. 34, 3994–4004 (2019). https://doi.org/10.1109/TPWRS.2018.2808961

    Article  Google Scholar 

  27. Tushar, W., et al.: Energy storage sharing in smart grid: a modified auction-based approach. IEEE Trans Smart Grid 7, 1462–1475 (2016). https://doi.org/10.1109/TSG.2015.2512267

    Article  Google Scholar 

  28. Wu, Y., Wu, Y., Cimen, H., Vasquez, J.C., Guerrero, J.M.: P2P energy trading: blockchain-enabled P2P energy society with multi-scale flexibility services. Energy Rep. 8, 3614–3628 (2022). https://doi.org/10.1016/j.egyr.2022.02.074

    Article  Google Scholar 

  29. Soto, E.A., Bosman, L.B., Wollega, E., Leon-Salas, W.D.: Peer-to-peer energy trading: a review of the literature. Appl. Energy 283, 116268 (2021). https://doi.org/10.1016/j.apenergy.2020.116268

    Article  Google Scholar 

  30. Xu, Z., Wang, Y., Dong, R., Li, W.: Research on multi-microgrid power transaction process based on blockchain Technology. Electr. Power Syst. Res. 213, 108649 (2022). https://doi.org/10.1016/j.epsr.2022.108649

    Article  Google Scholar 

  31. Junaidi, N., Abdullah, M.P., Alharbi, B., Shaaban, M.: Blockchain-based management of demand response in electric energy grids: a systematic review. Energy Rep. 9, 5075–5100 (2023). https://doi.org/10.1016/J.EGYR.2023.04.020

    Article  Google Scholar 

  32. Lucas, A., Geneiatakis, D., Soupionis, Y., Nai-Fovino, I., Kotsakis, E.: Blockchain technology applied to energy demand response service tracking and data sharing. Energies (Basel) 14, 1881 (2021). https://doi.org/10.3390/en14071881

    Article  Google Scholar 

  33. Das, A., Peu, S.D., Akanda, M., Islam, A.: Peer-to-peer energy trading pricing mechanisms: towards a comprehensive analysis of energy and network service pricing (NSP) mechanisms to get sustainable enviro-economical energy sector. Energies (Basel) 16, 2198 (2023). https://doi.org/10.3390/en16052198

    Article  Google Scholar 

  34. Liu, N., Yu, X., Wang, C., Li, C., Ma, L., Lei, J.: Energy-sharing model with price-based demand response for microgrids of peer-to-peer prosumers. IEEE Trans. Power Syst. 32, 3569–3583 (2017). https://doi.org/10.1109/TPWRS.2017.2649558

    Article  Google Scholar 

  35. Foti, M., Vavalis, M.: Blockchain based uniform price double auctions for energy markets. Appl. Energy 254, 113604 (2019). https://doi.org/10.1016/j.apenergy.2019.113604

    Article  Google Scholar 

  36. Moniruzzaman, M., Yassine, A., Benlamri, R.: Blockchain and cooperative game theory for peer-to-peer energy trading in smart grids. Int. J. Electr. Power Energy Syst. 151, 109111 (2023). https://doi.org/10.1016/J.IJEPES.2023.109111

    Article  Google Scholar 

  37. An, J., Lee, M., Yeom, S., Hong, T.: Determining the Peer-to-Peer electricity trading price and strategy for energy prosumers and consumers within a microgrid. Appl. Energy 261, 114335 (2020). https://doi.org/10.1016/J.APENERGY.2019.114335

    Article  Google Scholar 

  38. Doan, H.T., Cho, J., Kim, D.: Peer-to-peer energy trading in smart grid through blockchain: a double auction-based game theoretic approach. IEEE Access 9, 49206–49218 (2021). https://doi.org/10.1109/ACCESS.2021.3068730

    Article  Google Scholar 

  39. FlexiDAO (2017) FlexiDAO. https://www.flexidao.com/. Accessed 28 Aug 2023

  40. Spectral: Stellar (2015). https://spectral.energy/. Accessed 28 Aug 2023

  41. Electron: Electron (2015). https://electron.net/. Accessed 28 Aug 2023

  42. EVShare Foundation: EVShare (2018). https://evshare.com/. Accessed 28 Aug 2023

  43. LO3 Energy: LO3 Energy (2012). https://lo3energy.com/. Accessed 28 Aug 2023

  44. Leap: Leap (2018). https://www.leap.energy/. Accessed 28 Aug 2023

Download references

Acknowledgements

This project has received funding from the European Union’s Horizon 2020 research and innovation program under the Marie Skłodowska-Curie grant agreement No. 101007820. This publication reflects only the author’s view, and the REA is not responsible for any use that may be made of the information it contains.

Author information

Authors and Affiliations

  1. KU Leuven, 3000, Leuven, Belgium

    Maarten Evens & Alessia Arteconi

  2. EnergyVille, 3600, Genk, Belgium

    Maarten Evens & Alessia Arteconi

  3. Università Politecnica delle Marche, 60131, Ancona, Italy

    Patricia Ercoli & Alessia Arteconi

Authors
  1. Maarten Evens
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Patricia Ercoli
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Alessia Arteconi
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Maarten Evens .

Editor information

Editors and Affiliations

  1. RISE Research Institutes of Sweden, Borås, Sweden

    Behrooz Sangchoolie

  2. Fraunhofer IESE, Kaiserslautern, Germany

    Rasmus Adler

  3. University of York, York, UK

    Richard Hawkins

  4. Fraunhofer IKS, Munich, Germany

    Philipp Schleiss

  5. KU Leuven, Geel, Belgium

    Alessia Arteconi

  6. Università Politecnica delle Marche, Ancona, Italy

    Adriano Mancini

Ethics declarations

The authors have no competing interests to declare that are relevant to the content of this article.

Rights and permissions

Reprints and permissions

Copyright information

© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Evens, M., Ercoli, P., Arteconi, A. (2024). On the Application of Blockchain Technology in Microgrids. In: Sangchoolie, B., Adler, R., Hawkins, R., Schleiss, P., Arteconi, A., Mancini, A. (eds) Dependable Computing – EDCC 2024 Workshops. EDCC 2024. Communications in Computer and Information Science, vol 2078. Springer, Cham. https://doi.org/10.1007/978-3-031-56776-6_8

Download citation

  • DOI: https://doi.org/10.1007/978-3-031-56776-6_8

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-56775-9

  • Online ISBN: 978-3-031-56776-6

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics