Implementation of Blockchain technology for Energy Trading with Smart Meters

Abstract

Proliferation of Distributed Energy Resources (DER) changed power system operation drastically. They introduced generation at distribution level, which was unprecedented. Also, bidirectional power flow created more optimization opportunities such as Demand Side Management (DSM) and Vehicle-to-Grid (V2G) support. These schemes allow for efficient use of grid infrastructure, storage devices and DERs. In order to plan the operation and calculate bills, it is imperative to keep a record of these transactions. When some sort of trading occurs between multiple parties, trust is a major concern. Traditionally, a third part trusted by all keeps the record of transactions. Using blockchain technology for energy trading eliminates the role of trusted third party. This paper discusses the feasibility and benefits of implementing blockchain for smartgrids. It also develops an Ethereum-based implementation of blockchain technology for energy trading. Results are shown for a case where energy transactions are undertaken between Distribution System Operator (DSO) and smart meters of individual houses.