Existing system challenges can be resolved by using the Blockchain digital ledger technology to assist multiple power applications at the generation, transmission, distribution, and consumption stages. Trading renewable energy certificates and credits based on actual energy usage can be automated using blockchain ledger technology.
Context:
Blockchain “Distributed Ledger Technology” (DLT) is capable of managing and storing transactions involving numerous parties. DLT can be used for any multi-step transaction-based application that demands security, traceability, and visibility because of its immutable, secure, and transparent nature. By removing the need for a middleman and connecting the buyer and seller directly, blockchain technology lowers the expenses and fees associated with transactions.
In the P2P network, blocks that are identically stored for each market participant are used to store any transactions. The owner's digital signature authorises each transaction in this digital ledger, ensuring its authenticity and protecting it from fraud. Based on who may add data to the chain and access the distributed ledger, there are three different types of blockchain platforms: Public, Private, and Consortium.
Can blockchain be implemented in power grids? - Articlesonblockchain
Using blockchain digital ledger has many advantages, few of them are secure, transparent, and robust network with a tamper-proof data record accessible to all participants in the network. With these features, the existing difficulties in the power system can be addressed in the production, transmission, distribution, and consumption phases.
How does blockchain help renewable energy? - Articlesonblockchain
- The actual transactions between the producer and consumer for consuming the renewable energy can be automated.
- Payments in the P2P microgrids can be created through Blockchain smartcontracts.
- For coordination of wholesale power trading, blockchain removes the necessity of middle man management like brokers, indexing agencies, specialised energy trading, or risk-management software.
- Interactive dashboards on customer utility, grid interactions, payment information, and energy consumption can be managed efficiently using the blockchain distributed ledger technology.
What Infrastructure used in blockchain technology for energy trading? -Articlesonblockchain
The critical components for implementing blockchain technology are full nodes (computers), partial nodes (smartphones or smart meters), a communication network, and a software platform.
Conclusion:
Blockchain digital ledger technology has the potential to drastically improve energy markets. However, because present implementations are on a small scale, extensive work is required before any wider implementation can be a serious disruptive force in this field.
Note: For case studies on Power Systems Rely on Blockchain Technology refer to below links:
[0] - https://www.cigre.org/article/GB/the-application-of-blockchain-technology-in-power-systems
[1] - https://www.ceew.in/cef/masterclass/explains/the-role-of-blockchain-technology-in-the-power-sector
