Conceptualization of Blockchain Enabled Interconnected Smart Microgrids

Abstract

<p> Power systems are undergoing rapid transitions to incorporate renewable sources of generation and to combat climate change. Next stage of transitions will lead to a shift from large-scale, centralized systems to networks of smallsized, distributed electricity systems which require distributed or decentralized ledgers for database management for efficient transactions. Distributed Ledger Technology (DLT) are a form of decentralized ledgers where the transactions (energy, information and money) among various entities are maintained. One such DLT is blockchain technology which offers several advantages. Data recorded in blockchains are difficult to tamper with; have privacy protection; facilitate fast, accurate and real-time settlement of financial transactions. Contemporary research has started focusing on their possible applications in energy systems. State-of-the-art suggests that while business and market aspects have been extensively discussed, the electrical constraints and implementation methodologies have not been adequately addressed. Furthermore, all the reviewed projects have implemented only peer-to-peer transactions that are not scalable. To incorporate the new entities like prosumers, intermicrogrid transactions and interactions with the legacy power grid, new structural and operational frameworks are necessary. The proposed research explores the possibility of developing blockchain enabled smart microgrids (BSMG) with the above frameworks. It aims to build a conceptual framework of BSMG, including the transaction protocols and process flows. It proposes inclusion of network constraints in a three-levelled transaction setup which is executed over a four-layered architecture. Another practical challenge is that BSMGs may be set up on different blockchain platforms. Hence, this paper also proposes implementing Inter-Blockchain Protocol for the first time to include interoperability and communication between different platforms. Finally the performance metrics that will be used to validate the BSMGs are outlined. </p>

Achieving Interoperability in Heterogeneous Blockchain Users Through Inter-Blockchain Communication Protocol

“…While interoperability has been discussed and implemented to a certain extent in DeFi, the energy sector is yet to discuss and implement it. This topic has been mentioned in [5] and addressed in limitation in [14]. The current paper recognizes the before mentioned reasons for the need for interoperability between heterogeneous BSMGs (or individual users) and tries to provide a solution.…”

Achieving Interoperability in Heterogeneous Blockchain Users Through Inter-Blockchain Communication Protocol

“…These works involve transactions between homogeneous chains or chains implemented on the same BCT platform. Since complete and true interoperability involves transactions between heterogeneous chains too, this research problem has not been sufficiently explored and is currently a research gap which has been identified in [5], [14] and addressed in this paper. The challenges regarding scalability and interoperability are mentioned in [5] while a conceptual discussion is conducted in [14].…”

“…Since complete and true interoperability involves transactions between heterogeneous chains too, this research problem has not been sufficiently explored and is currently a research gap which has been identified in [5], [14] and addressed in this paper. The challenges regarding scalability and interoperability are mentioned in [5] while a conceptual discussion is conducted in [14]. The latter proposes executing interactions between Ethereum, Hyperledger and Tendermint platforms through IBC, but does not discuss the required setup or the practical implementation.…”

“…Since Ethereum, HyperLedger, and Tendermint are the most popularly used blockchain platforms [3], they have been discussed in this paper. Fig 1 depicts a hypothetical, proposed microgrid setup for BSMG interconnected through IBC as referenced from [14]. Microgrids 1, 2, and 3 are set up on Ethereum, Tendermint and HyperLedger Fabric platforms, respectively.…”

“…Fig. 1: Proposed Inter-Microgrid Setup as Given in [14] While intra-microgrid transactions occur on the same blockchain platform, inter-microgrid transactions and microgrid to large grid transactions may involve different platforms [14]. Even in completely P2P transactions, the peers may be set up on different platforms, leading to complications.…”