Blockchain-Based Smart Renewable Energy: Review of Operational and Transactional Challenges

Abstract

Blockchain has peculiar characteristics among various digital technologies due to its decentralised and cryptographic properties. The combination of intelligent energy systems and blockchain can innovate new forms of transactive energy and navigate the digital journey to transform the future of renewable energy systems. This review studies various blockchain implementations in the smart energy domain and presents the findings on operational and transactional challenges in a blockchain-based smart renewable energy system. We also identify the differences between operations and transactions in smart energy systems. Furthermore, we identify the most pronounced cryptocurrencies in different studies. The findings highlighted various challenges concerning the implementation of blockchain-based smart energy systems. We identified how these challenges spawn across operational and transactional deliverables. Building on these findings, we discuss various challenges impacting the operational and transactional domains, which we believe have significant value for researchers, practitioners, policy makers, entrepreneurs, and start-ups. It will provide long-term benefits to humankind in fulfilling energy requirements, promoting sustainable energy use by developing countermeasures to combat identified challenges and leveraging the optimal use of blockchain technology.

Secure and Sustainable Energy Distribution through Blockchain Technology in Smart Grids

“…The consensus algorithms employed in blockchain, which have historically been energy-intensive, are being re-engineered to suit energy-sensitive applications like smart grids. Proof of Stake (PoS), Delegated Proof of Stake (DPoS), and Practical Byzantine Fault Tolerance (PBFT) are examples of such algorithms that prioritize energy efficiency and are more suitable for smart grid applications [33]. The design of blockchain systems for smart grids also considers the scalability of the network to ensure that increasing transaction volumes and the addition of grid assets do not compromise the system's performance.…”

Blockchain Integration and Its Impact on Renewable Energy

“…Taking into account the body of literature, earlier evaluations together offer a grasp of the situation and difficulties surrounding the integration of blockchain technology with renewable energy systems. While Nepal et al [23] explored the operational and transactional problems in smart renewable energy systems, Henninger and Mashatan [24] provided insights into the technology layers of grid system infrastructures and suggested a future state employing blockchain. Gavusu et al [18] drew attention to the importance of blockchain integration in the renewable energy sector, whereas Barcelo et al [25] discussed the necessity for regulatory development and how to overcome the difficulties that come with implementing blockchain technology.…”