Energy trading and control in microgrid network by using blockchain technology

Manzar Ahmed; Mishaal Ahhmed; Muhammad Javeed; Lubna Farhi; Abid M. Khan; Ibrar-Ul-Haq; Adnan Yousaf; Mansoor Ahmed. Rasheed; Mannan Ahmed Rasheed

Manzar Ahmed Department of Electrical Engineering, Sir Syed University of Engineering & Technology,Karachi,Pakistan

Mishaal Ahhmed Department of Information Engineering Technology, The Superior University,Lahore,Pakistan

Muhammad Javeed Department of Electrical Engineering, Sir Syed University of Engineering & Technology,Karachi,Pakistan

Lubna Farhi Department of Electrical Engineering, Sir Syed University of Engineering & Technology,Karachi,Pakistan

Abid M. Khan Department of Electrical Engineering, Sir Syed University of Engineering & Technology,Karachi,Pakistan

Ibrar-Ul-Haq Department of Electrical Engineering, Sir Syed University of Engineering & Technology,Karachi,Pakistan

Adnan Yousaf Department of Information Engineering Technology, The Superior University,Lahore,Pakistan

Mansoor Ahmed. Rasheed Department of Information Engineering Technology, The Superior University,Lahore,Pakistan; Department of Electrical Engineering, University of Management & Technology,Lahore,Pakistan

Mannan Ahmed Rasheed Department of Electrical Engineering, University of Management & Technology,Lahore,Pakistan

The emerging need for renewable energy is becoming essential and renewable energy trading systems are being developed in the microgrid. With the advancement in computing technologies such as IoT (Internet of Things), interconnected networks, and blockchain, Microgrid has introduced a variety of applications and innovative solutions for efficient system maintenance. Practitioners and scholars are contributing towards the controlling of energy resources through the IoT for both residential and commercial purposes. For a residential power system, a user can install a solar or wind energy system from 1 KW to 10 MW and controlled by the Microgrid. The Microgrid can work in two modes such as a stand-alone system or a grid-connected mode. To control losses while trading energy in the Microgrid network, blockchain technology is suitable as it has the potential to resolve all issues such as energy theft, billing fraud, thirdparty involvement, and opaque infrastructure. Blockchain employs Distributed Ledger Technology (DLT) and has the potential to improve energy infrastructure through enhanced security, transparency, immutability, and distributed storage. The Microgrid in combination with blockchain provides a complete solution to the issues present in conventional energy systems. In this research article, a Microgrid model with blockchain technology has been proposed for the energy sector to address the contemporary issues found in conventional energy systems. The proposed system eliminates the intervention of third parties, enable transparent energy trading, improves the contract system, secures transaction based on cryptocurrency. The proposed system provides a secure infrastructure through cryptography and consensus algorithms.