Blockchain-Based Systems for the Modern Energy Grid

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