Electricity Usage Settlement System Based on a Cryptocurrency Instrument

Abstract

This article reviews the issue of the use of cryptocurrencies (crypto-assets, in general) for an electricity settlement system. The development of digital techniques, including blockchain-based mechanisms, has meant that an increased interest in blockchain-based solutions is to be expected. Blockchain and similar approaches are characterised by decentralisation, so they are concurrent with the trends of the transforming power sector. Decentralised energy generation based on a high proportion of prosumer installations requires the implementation of a new settlement system for grid activities related to electricity use. The first projects of such systems based on a dedicated cryptocurrency have emerged. Based on these, the general concept of such a system with its own cryptocurrency called CCE is presented, including variants implementing net-metering and net-billing. Furthermore, issues requiring interdisciplinary research work and discussion before implementing such systems were identified. A settlement system in which a cryptocurrency is linked to a unit of energy used could be a first step towards introducing a new universal means of value exchange, linked to energy as the primary measure of the value of goods.

Blockchain-Based Applications for Smart Grids: An Umbrella Review

“…Blockchain technology could streamline processes, lower costs, and increase transparency levels. In [27], a blockchain-based framework was proposed, as illustrated in Figure 4. The metering operator is in charge of measuring electricity usage (using smart meters, for example).…”

“…Asif et al [25] Bandeiras et al [26] Bielecki et al [27] Chiarini et al [28] Kapassa et al [29] Karumba et al [30] Kirli et al [31] Thukral et al [32] Wu et al [33] Yan et al [34] In [25], blockchains, in conjunction with physical unclonable functions (PUFs), were proposed to enhance the security of smart grids (referred to as the Internet of Energy), where all devices are protected by a PUF.…”

“…In [27], studies on using cryptocurrency as a settlement method for energy trading and electricity usage were reviewed. A common approach in these studies was to issue a custom token as a form of payment.…”