Integrating Blockchain in Smart Grids for Enhanced Demand Response: Challenges, Strategies, and Future Directions

Abstract

This research, conducted throughout the years 2022 and 2023, examines the role of blockchain technology in optimizing Demand Response (DR) within Smart Grids (SGs). It critically assesses a range of blockchain architectures, evaluating their impact on enhancing DR’s efficiency, security, and consumer engagement. Concurrently, it addresses challenges like scalability, interoperability, and regulatory complexities inherent in merging blockchain with existing energy systems. By integrating theoretical and practical viewpoints, it reveals the potential of blockchain technology to revolutionize Demand Response (DR). Findings affirm that integrating blockchain technology into SGs effectively enhances the efficiency and security of DR, and empirical data illustrate substantial improvements in both cases. Furthermore, key challenges include scalability and interoperability, and also identifying opportunities to enhance consumer engagement and foster system transparency in the adoption of blockchain within DR and SGs. Finally, this work emphasizes the necessity for further investigation to address development hurdles and enhance the effectiveness of blockchain technology in sustainable energy management in SGs.

BPET: A Unified Blockchain-Based Framework for Peer-to-Peer Energy Trading

“…However, developing such a system entails substantial effort and cost. Challenges include but are not limited to technical complexity, blockchain platforms' scalability and interoperability, regulatory frameworks and standardization, smart contract vulnerabilities, and market dynamics [5,6]. On one hand, the intricacies of the blockchain technology stack demand experienced developers to ensure system security and efficiency.…”