Utilizing Blockchain Technology for Settlement in a Microgrid

Abstract

Blockchains have been embraced by many industries where transactions, either financial or non-financial, are involved. Furthermore, blockchains have been proven to support transactions, without the need for a third-party or other middlemen. Given the distributed properties of blockchains, they are very suitable as the underlying foundation of peer-to-peer applications. Among the peer-to-peer applications that could be improved with the support of blockchains, is the microgrid. Microgrids are finite energy systems where peers may purchase energy among themselves.

This thesis investigates the blockchains ability to work as the underlying technology to support settlement in a microgrid. The blockchain is essentially a distributed, immutable ledger. However, there exists many versions of this ledger based on implementation features such as governance and consensus etc. A thorough background study of blockchains, and the differences in the blockchain features are presented. Furthermore, existing systems using blockchains for settlement in peer-to-peer energy systems are presented. Based on the findings in the background study and related work, a new blockchain as the technology for supporting these transactions is proposed and implemented. Results from the tests show that the proof-of-concept blockchain developed in this thesis works well as the underlying technology for settling energy flow in a microgrid. However, further development and testing is required for a real system.