Blockchain-Based Microgrid for Safe and Reliable Power Generation and Distribution: A Case Study of Saudi Arabia

Abstract

Energy demand is increasing rapidly due to rapid growth and industrialization. It is becoming more and more complex to manage generation and distribution due to the diversification of energy sources to minimize carbon emissions. Smart grids manage reliable power generation and distribution efficiently and cater to a large geographical area and population, but their centralized structure makes them vulnerable. Cybersecurity threats have become a significant concern with these systems’ increasing complexity and connectivity. Further transmission losses and its vulnerability to the single point of failure (SPOF) are also major concerns. Microgrids are becoming an alternative to large, centralized smart grids that can be managed locally with fewer user bases and are safe from SPOF. Microgrids cater to small geographical areas and populations that can be easily managed at the local level and utilized for different sources of energy, like renewable energy. A small group of consumers and producers are involved, but microgrids can also be connected with smart grids if required to exchange the excess energy. Still, these are also vulnerable to cybersecurity threats, as in the case of smart grids, and lack trust due to their decentralized nature without any trusted third party. Blockchain (BC) technology can address the trust and cybersecurity challenges in the energy sector. This article proposes a framework for implementing a BC-based microgrid system for managing all the aspects of a microgrid system, including peer-to-peer (P2P) energy trading, Renewable Energy Certificate (REC), and decentralized energy trading, that can be utilized in the case of Saudi Arabia. It can integrate cybersecurity standards and protocols, as well as the utilization of smart contracts, for more secure and reliable energy generation and distribution with transparency.

Blockchain technology in the renewable energy sector: A co-word analysis of academic discourse

“…Overall, the red cluster vividly illustrates a future energy landscape marked by decentralized networks, empowered consumers, and a greater reliance on renewable energy sources. This vision aligns with global sustainability goals and the transition towards more adaptive, resilient, and environmentally friendly energy systems [ 16 , 47 , 162 ].…”

“…This period highlights the growing importance of Industry 4.0 technologies in developing sustainability within the energy sector. Key studies for this period include Akkaoui et al [ 160 ], Strielkowski et al [ 192 ], Khurbani and Alam [ 162 ], which discuss the role of blockchain in facilitating sustainable energy operations and transitions. Throughout these periods, certain themes like 'Blockchain' and 'Sustainability' remain consistently relevant, underlining their central importance in the sector.…”

A Voltage-Aware P2P Power Trading System Aimed at Eliminating Unfairness Due to the Interconnection Location

“…However, due to the uneven output of solar power, the price of electricity sold is below 10 JPY/kWh for many businesses, which means the price will drop significantly. As a new trading venue for such surplus power, P2P power trading, which utilizes blockchain to conduct power transactions, is being considered [3][4][5][6]. P2P is an abbreviation for Peer to Peer, meaning transactions between equals, and the P2P power trading market is a market where consumers who sell surplus power (hereinafter referred to as "prosumers") and consumers who purchase power (hereinafter referred to as "consumers") exchange power.…”