Blockchain-Based Systems for the Modern Energy Grid

Description

Blockchain-Based Systems for a Paradigm Shift in the Energy Grid explores the technologies and tools to utilize blockchain for energy grids and assists professionals and researchers to find alternative solutions for the future of the energy sector. The focus of this globally edited book is on the application of blockchain technology and the balance between supply and demand for energy and where it is achievable. Looking at the integration of blockchain and how it will make the network resistant to any failure in sub-components, this book has very clearly explores the areas of energy sector that need in-depth study of Blockchain for expanding energy markets. Meeting the demands of energy by local trading, verifying use of green energy certificates and providing a greater understanding of smart energy grids and Blockchain use cases. Exhaustively exploring the use of Blockchain for energy, this reference useful for all those in the energy industry looking to avoid disruption in the grid and sustain and control successful flow of electricity. Front Cover Blockchain-Based Systems for the Modern Energy Grid Copyright Page Contents List of contributors Preface 1 Introduction—blockchain and smart grid 1.1 Blockchain 1.2 Blockchain versus bitcoin 1.3 Need of blockchain 1.4 Blockchain architecture 1.5 Blockchain versions 1.5.1 Blockchain 1.0: currency 1.5.2 Blockchain 2.0: smart contracts 1.5.3 Blockchain 3.0: DApps 1.6 Blockchain variants 1.6.1 Permissionless 1.6.2 Permissioned 1.6.3 On-chain 1.6.4 Off-chain 1.6.5 Public 1.6.6 Private 1.6.7 Consortium 1.7 Distributed P2P network 1.8 Blockchain transaction process 1.9 Blockchain technology in the energy sector 1.9.1 Blockchain use cases in energy 1.10 Blockchain impacts various fields 1.10.1 Blockchain impact on microgrids 1.10.2 Blockchain impact on utility providers 1.10.3 Blockchain impact on the upstream oil and gas stream 1.10.4 Blockchain impact on wholesale electricity distribution 1.11 Blockchain technology for smart grids 1.11.1 Load forecasting 1.11.1.1 Blockchain in load forecasting 1.11.2 Energy trading 1.11.2.1 Blockchain in energy trading 1.11.3 Cyber security 1.11.3.1 Blockchain with cybersecurity 1.11.4 Cloud computing 1.11.4.1 Blockchain in cloud computing 1.11.5 Electric vehicles 1.11.5.1 Blockchain in electric vehicles 1.11.6 Microgrids 1.11.6.1 Blockchain in microgrids 1.11.7 Demand response 1.11.7.1 Blockchain in demand response 1.11.8 Metering 1.11.8.1 Blockchain in metering 1.11.9 Virtual power plants 1.11.9.1 Blockchain in virtual power plants 1.12 Limitations of blockchain technology 1.13 Blockchain council References 2 An introduction to blockchain technology, smart energy grids, and their integration 2.1 Introduction 2.2 Concept of blockchain 2.3 Structure of blockchain 2.4 Node in a blockchain 2.4.1 Ownership model 2.5 Introduction to smart grid 2.5.1 Difference between smart grid and grid modernization 2.5.2 Smart grid versus traditional electricity grids 2.6 Microgrids 2.7 Smart grid in industrial IoT use cases 2.7.1 Role of prosumers in smart grid 2.8 Smart grid and decentralization of energy generation 2.8.1 Impact of distributed generation in smart grids 2.9 Advantages of smart grid 2.10 Issues with smart grids 2.10.1 Consumer concerns 2.10.2 Cybersecurity issues 2.11 Hurdles in smart grid 2.11.1 Distributed energy resources 2.12 Putting customers in charge References 3 Transformation of smart grid to internet of energy 3.1 Introduction to smart grid 3.2 Structure of traditional grid 3.3 Features of smart grid 3.3.1 The important features of smart grid 3.4 Smart grid components 3.4.1 Smart substations 3.4.2 Super connecting cables 3.4.3 Storage components 3.4.4 Monitoring control 3.5 Smart gird evolution 3.6 Internet of energy 3.6.1 Introduction to internet of energy 3.7 The architecture of the internet of energy communication network 3.8 Transformation of smart grid to internet of energy 3.9 Objectives of internet of energy 3.10 Issues in internet of energy 3.10.1 Power transaction management 3.10.2 Transaction/settlement mechanism 3.10.3 Energy trading based on peer-to-peer architecture 3.10.4 Demand pricing and hacking References 4 Blockchain for energy transactions 4.1 Introduction 4.2 Blockchain benefits 4.3 Evolution of energy grid 4.4 Features of the smart energy grid 4.5 Requirements of information and communication technology in the energy grid 4.6 Opportunities in smart grid 4.6.1 Battery 4.6.2 Large-scale grid 4.6.3 Balancing demand and supply 4.6.4 Pay per use policy 4.7 Potentiality of blockchain in the energy sector 4.8 Decentralized energy trading market 4.8.1 Blockchain in legacy energy sectors 4.9 Use cases of blockchain-enabled energy markets 4.9.1 Wholesale energy distribution 4.9.2 Peer-to-peer energy trading 4.9.3 Electricity data management 4.9.4 Commodity trading 4.9.5 Blockchain for utility providers 4.9.6 Blockchain for the oil and gas industry 4.10 Blockchain projects in the energy industry around the world 4.10.1 Brooklyn microgrid 4.10.2 ME SOLShare 4.10.3 Enerchain 1.0 4.10.4 Tobalaba 4.10.5 Sun exchange 4.10.6 ImpactPPA 4.11 The decentralized energy transaction model 4.11.1 Process of energy transaction 4.11.2 Threats in a distributed energy model 4.11.2.1 Selfish mining attack 4.11.2.2 Sybil attack 4.11.2.3 Eclipse attack 4.12 Blockchain-enabled energy industries 4.12.1 Metering 4.12.2 Grid management 4.12.3 Decentralized generation 4.12.4 Electric vehicle market 4.12.5 Internet of things References 5 Wireless communications in energy grid 5.1 Introduction 5.2 Wireless communication 5.2.1 Highlights of wireless communication 5.2.1.1 Cost adequacy 5.2.1.2 Adaptability 5.2.1.3 Accommodation 5.2.1.4 Speed 5.2.1.5 Availability 5.2.1.6 Steady network 5.3 Uses of wireless communication 5.3.1 Settling on decisions 5.3.1.1 Associating devices 5.3.1.2 Getting to the internet 5.3.1.3 Upgrade security 5.3.1.4 For locating and tracking 5.3.1.5 Energy cooperation 5.3.1.6 Energy trading in aggregator 5.3.1.6.1 Energy gird utilities 5.3.1.6.2 Wireless grid architectonics 5.4 Conclusion References 6 Blockchain in internet of entities - issues and challenges 6.1 Introduction 6.2 History of blockchain 6.3 Issues and challenges faced by blockchain in internet of entities 6.3.1 Resiliency against combined attacks 6.3.2 Dynamic adaptive security framework 6.3.3 General data protection regulation compliance 6.3.4 Blockchain-specific infrastructure 6.3.5 Advertisement dissemination in vehicular cloud 6.3.6 Handling skyline queries 6.3.7 Mining of energy efficiency 6.3.8 Social networks and trust management (Social IoT) 6.3.9 “51%” attack in blockchain 6.3.10 Scalability of blockchain 6.3.11 Lack of adoption 6.3.12 Skills gap 6.3.13 Integrated cost problem 6.3.14 Blockchain and internet of entities technology distribution 6.3.14.1 Internet of entities technology spread 6.4 Discussion 6.5 Conclusion References Further reading 7 Blockchain-based security for internet of everything 7.1 Introduction 7.2 A brief history of the internet of everything 7.2.1 The gap between internet of everything and internet of things 7.3 The concept of internet of everything 7.3.1 People 7.3.2 Process 7.3.3 Thing 7.3.4 Data 7.4 Protection and isolation problems in internet of everything 7.4.1 User confidentiality and data shelter in the internet of everything 7.4.2 Authentication and identification 7.4.3 Authorization and access control of blockchain-based security for internet of everything 7.4.4 End-to-end protection 7.4.5 Attack unyielding 7.5 Internet of everything based on blockchain with distributed ledgers 7.6 Application of blockchain-based security for internet of everything 7.7 Summary References 8 Blockchain utility in renewable energy 8.1 Overview of renewable energy and internet of energy 8.1.1 Issues in internet of energy 8.1.1.1 Payment mechanism 8.1.1.2 Energy trading mechanism 8.1.1.3 Demand management 8.1.1.4 Security threats 8.1.1.5 Pricing mechanism 8.1.2 Blockchain preliminaries 8.1.2.1 Block 8.1.2.2 Smart contract 8.1.2.3 Consensus mechanism 8.1.3 Blockchain in internet of energy 8.1.3.1 Security management 8.1.3.2 Energy trading 8.1.3.3 Scheduling management 8.1.3.4 Response management 8.1.3.5 Certificate management 8.1.4 Energy networking 8.1.5 Peer-to-Peer energy supply in grid 8.1.6 Blockchain-based energy trading 8.1.7 Green certificate and energy trading 8.1.8 Characteristics of blockchain in energy trading 8.1.9 Efficient blockchain model for energy utility 8.1.10 Benefits of using blockchain in the energy sector 8.1.11 Chapter summary References 9 Impact of Blockchain-IoE on economy 9.1 Introduction to blockchain in supply chain management 9.1.1 Workflow of a blockchain 9.1.2 Features of blockchain 9.1.3 The architectural design of blockchain 9.1.3.1 Source block 9.1.3.2 Transaction block 9.1.3.3 Block building module 9.1.3.4 Data validation block 9.1.3.5 User interaction module 9.1.4 Supply chain management and blockchain 9.1.4.1 Data collection and administration 9.1.4.2 Improved transparency 9.1.5 Improved response speed 9.1.6 Management of smart contracts 9.1.7 Increased efficiency in operations 9.1.8 Disintermediation 9.1.9 Immutability 9.2 Utilization of blockchain in smart contracting functionalities 9.2.1 Provenance 9.2.2 The resilience of supply chains 9.2.3 Reengineering the supply chain 9.2.4 Enhancement of security 9.2.5 Security in the internet of things 9.2.6 Intrusion detection system 9.2.7 RFID security 9.3 Management of business processes 9.4 Management of products 9.4.1 Removal of a product 9.4.2 Product distribution price tracking 9.4.3 The resilience of supply chains 9.4.4 Provenance in the supply chain 9.4.5 Reengineering the supply chain 9.4.6 Enhancement of security 9.4.7 Management of business processes 9.4.8 Management of products 9.4.9 Management of the environment 9.4.9.1 Supplier development and vendor selection 9.4.9.2 Mobile operational services 9.4.9.3 Material logistics and inbound management 9.4.9.4 Production and internal operations 9.4.9.5 Outbound logistics and marketing 9.4.9.6 Reverse logistics 9.5 Significant challenges in practical implementation 9.6 Challenges in the workplace 9.7 Technical difficulties 9.7.1 Issues in increasing number of transactions 9.7.2 Data privacy and confidentiality 9.7.3 Interoperability 9.7.4 Product provenance 9.7.5 Latency 9.7.6 Operational difficulties 9.8 Plastic recycling and circular economy—recent challenges and developments 9.9 Waste value analysis in the circular economy 9.10 Integration of sensors and AI with blockchain 9.11 Segregation of plastic waste using multiple sensors integrated with AI and blockchain 9.12 Smart contracts on the blockchain 9.12.1 Types of smart contracts 9.13 The internet of things with blockchain support 9.14 Machine-to-machine economy based on blockchain References 10 Decentralized platform for energy exchange: a case study 10.1 Introduction 10.2 Smart grid 10.3 Recapitulation of blockchain technology 10.3.1 Harmony of blockchain 10.3.2 Consensus algorithms 10.3.2.1 Proof-of-work 10.3.2.2 Proof-of-stake 10.3.2.3 Proof-of-authority 10.3.2.4 Proof-of-elapsed time 10.4 Permissionless vs. permissioned blockchain 10.4.1 Permissionless blockchain 10.4.2 Permissioned blockchain 10.5 Impediment of arbitrage-based system 10.6 Frameworks of blockchain-based decentralized power trading platform 10.7 Operational design of decentralized energy trading system 10.8 Life span of smart contract in Ethereum-based blockchain 10.9 Conclusion References 11 Peer-to-peer energy trading with blockchain: a case study 11.1 Introduction 11.2 Blockchain 11.3 Main elements of blockchain 11.3.1 Distributed ledger 11.3.1.1 Source of the ledger books 11.3.1.2 Importance of distributed ledger (DL) 11.4 Future of DL systems 11.4.1 Immutable records 11.5 What is immutability? 11.6 Cryptography+blockchain hashing process=immutability 11.7 SC (smart contract) through blockchain 11.7.1 Savings for intermediaries, automation, and time 11.7.2 Safety 11.7.3 Precision and openness 11.7.4 Fair 11.8 Benefits of blockchain 11.8.1 Trust 11.8.2 Consensus on security 11.8.3 Sustainability 11.8.4 Energy storage systems requirement 11.8.5 Batching 11.9 Energy storage systems type 11.10 Pumped hydro-storage 11.10.1 Storage of compressed air power 11.10.2 Various energy storage system (flywheel) 11.10.3 Storage of hydrogen 11.11 Magnetic energy store that are superconducting 11.11.1 Dual-layer electric condensers or super condensers 11.12 Thermal energy storage 11.12.1 Energy management energy storage systems for distributed generations 11.13 Benefits of peer-to-peer energy 11.14 Conclusion References 12 Blockchain-enabled electric vehicle charging 12.1 Introduction 12.2 Types of blockchain technologies 12.2.1 Public blockchain network 12.2.2 Private blockchain network 12.2.3 Consortium blockchain network 12.2.4 Hybrid blockchain network 12.3 Blockchain applications 12.3.1 Peer-to-peer based energy exchange between renewable microgrids 12.3.2 Peer-to-peer based vehicle charging 12.3.3 Aggregating distributed energy storage: a blockchain-based topology 12.3.4 Blockchain—financing for rooftop solar PV 12.4 Electric vehicle charging 12.4.1 Relevance and impacts 12.4.2 Related works 12.4.3 Payment can be made in two ways 12.4.4 Difficulties we need to confront while growing such a framework 12.4.5 System model 12.5 Conclusion and future vision References 13 Blockchain-based systems for modern energy grid: a detailed view on significant applications of blockchain for the smart... 13.1 Introduction 13.2 A blockchain framework for smart grid 13.2.1 Benefits of blockchain technology in the power/electricity industry 13.2.2 Challenges in implementing blockchain for power generation and storage 13.2.2.1 Scalability issues 13.2.2.2 Centralization’s probability 13.2.2.3 Development and infrastructure costs 13.2.2.4 Legal and regulatory assistance 13.3 Electricity data management 13.4 Electricity sector 13.4.1 Power generation 13.5 Teleporting electricity data through a smart grid 13.5.1 Network of power grids 13.5.2 Scalability 13.6 Blockchain technology’s conceptual background 13.6.1 Taxonomies of blockchain system architectures 13.6.2 Distributed ledger 13.7 Blockchain applications for smart grid 13.7.1 Devices and equipment’s tracking 13.7.2 Smart grid data sharing 13.7.2.1 Applications concerning energy management 13.7.2.2 Improvement of smart grid reliability and stability 13.7.2.3 Applications 13.7.3 Real-time applications References 14 Privacy-preserving in smart grids using Ethereum and Hyperledger blockchain 14.1 Introduction 14.2 Literature survey 14.3 Privacy concerns in smart grid implementation 14.4 Blockchain background 14.4.1 History of blockchain 14.4.2 Blockchain types 14.4.3 Elements of blockchain 14.4.3.1 Cryptographic hash functions 14.4.3.2 Asymmetric key cryptography 14.4.3.3 Transactions 14.4.3.4 Ledgers 14.4.3.5 Blocks 14.4.3.6 Merkle tree 14.4.3.7 Consensus 14.4.3.7.1 Proof-of-work 14.4.3.7.2 Proof of stake 14.4.3.7.3 Practical byzantine fault tolerance 14.4.3.7.4 Delegated proof of stake 14.4.3.7.5 Round robin consensus model 14.4.3.7.6 Proof of authority (identity) model 14.4.3.7.7 Proof of elapsed time consensus model 14.4.4 Bitcoin/cryptocurrency 14.4.5 Ethereum 14.4.6 Hyperledger Sawtooth 14.5 Blockchain in smart grid 14.5.1 Decentralized smart grid system 14.5.2 System architecture 14.5.3 Energy trading 14.5.4 Distribution system operators 14.5.5 Local energy providers 14.5.6 Consumers 14.6 Characteristics of a smart grid 14.6.1 Grid architecture 14.6.2 Peer-to-peer electricity trading 14.6.3 Blockchain-based peer-to-peer electricity trading difficulties 14.7 Implementation 14.7.1 Ethereum blockchain 14.7.1.1 Creation and initialization of related member variables 14.7.1.2 Implementation of GeneratePower function 14.7.1.2.1 Struct user 14.7.1.2.2 GeneratePower function 14.7.1.2.3 ReceivePower 14.7.1.2.4 Before transaction 14.7.1.2.5 After transaction 14.7.1.3 Implementation of consume power function 14.7.1.3.1 AddDetails 14.7.1.4 Implementation of query information function 14.7.1.4.1 GetInformation 14.7.2 Implementation on Hyperledger Sawtooth 14.7.2.1 Architecture 14.7.2.1.1 Global state 14.7.2.1.2 Clients 14.7.2.1.3 Validator 14.7.2.1.4 REST API 14.7.2.1.5 Consensus engine 14.7.2.1.6 Transaction processor 14.7.2.2 Design 14.7.2.3 Consensus in Hyperledger Sawtooth 14.7.2.3.1 Proof of elapsed time consensus 14.7.2.3.2 Practical Byzantine Fault Tolerance consensus 14.7.2.3.3 Dev mode consensus 14.7.2.3.4 Raft consensus 14.8 Result analysis 14.8.1 Performance analysis of Ethereum using Caliper 14.8.2 Performance analysis of Hyperledger Sawtooth using Caliper 14.8.3 Comparison of Ethereum and Hyperledger Sawtooth implementations 14.9 Conclusion References 15 Blockchain in monitoring and automation of distribution systems 15.1 Introduction 15.2 Power system monitoring on distribution grids and Local Energy Communities 15.2.1 Characteristics of the distribution grid and Local Energy Communities 15.2.2 Decentralized state estimation on distribution grids 15.2.2.1 Network architecture for decentralized state estimation 15.3 Blockchain-based services for distribution grid monitoring and automation 15.3.1 Blockchain-based monitoring services 15.3.1.1 Smart meter data collection 15.3.2 Cryptographic signature authentication for the exchange of monitoring measurement data and critical automation data 15.3.2.1 Cryptographic signature authentication for measurement equipment and smart meters 15.3.2.1.1 Distributed state estimation with blockchain information exchange 15.3.3 Blockchain-based automation in distribution systems 15.3.3.1 Consensus groups for automation 15.3.4 Remote operation of automation devices 15.3.4.1 Blockchain-based virtual redundancy 15.3.4.1.1 Application example 15.3.4.1.2 Application layer interacting with the blockchain 15.3.4.1.3 Virtual redundancy algorithm 15.3.5 A broader picture of monitoring and automation from the blockchain technology perspective Acknowledgment References 16 Blockchain-enabled energy sector management 16.1 Introduction 16.2 Blockchain technology 16.2.1 Consensus process 16.2.1.1 Proof-of-work 16.2.1.2 Proof-of-stake 16.2.1.3 Delegated proof-of-stake 16.2.1.4 Delegated proof-of-stake with downgrade 16.2.1.5 Proof-of-concept 16.2.1.6 Practical Byzantine fault tolerance 16.2.1.7 Raft algorithm 16.3 Forking and double-spending in blockchain technology 16.3.1 Forking 16.3.2 Double spending 16.4 Smart contracts in blockchain technology 16.5 Layers and nodes in blockchain technology 16.5.1 Types of network nodes 16.6 Merkle tree and pool mining in blockchain technology 16.6.1 Merkle tree 16.6.2 Pool mining 16.7 Trust enhanced blockchain technology 16.7.1 Global trust value evaluation 16.8 Blockchain-based federated learning 16.9 Blockchain modeling 16.10 Blockchain-enabled energy trading 16.10.1 Blockchain-based CrowdSourcing for energy trading 16.10.2 Tokenization in energy trading 16.10.3 Microgrid network management 16.10.4 Demand response scheme 16.10.5 Proposed trust value evaluation of the node 16.11 Simulation 16.12 Conclusion References Index Back Cover