The Convergence of Blockchain, Smart Microgrid, and Energy Market

This paper reviews the integration of blockchain technology, smart microgrids, and the energy market, highlighting its potential to revolutionize the energy industry. The integration of blockchain technology into smart microgrids aims to address challenges related to energy efficiency, reliability, and sustainability. The paper provides an overview of blockchain technology, emphasizing its transparency, immutability, and decentralization characteristics. It explores the concept of smart microgrids, which enable efficient energy management and integration of renewable energy sources. The combination of blockchain and smart microgrids offers several benefits such as increased efficiency, reduced transaction costs, enhanced security, and improved grid reliability. One of the key advantages of this convergence is the ability to facilitate peer-to-peer energy trading. Blockchain technology allows for transparent and auditable energy transactions, enabling direct trading between energy producers and consumers. This empowers prosumers to actively participate in the energy market, promoting renewable energy adoption and democratizing energy access. However, some challenges need to be addressed, including scalability, interoperability, and regulatory frameworks. Ongoing initiatives, projects, and pilot studies are exploring the implementation of blockchain-enabled smart microgrids, and case studies provide real-world examples of successful deployments. In conclusion, the convergence of blockchain, smart microgrids, and the electrical energy market has the potential to transform the energy industry. Collaboration among stakeholders, including energy companies, technology providers, regulators, and consumers, is crucial to fully realize the benefits of this integration. By leveraging blockchain and smart microgrids, the energy industry can pave the way for a more efficient, sustainable, and decentralized energy future.

Cite this article as: K. Esenowo Jack, E. Ozoemela Ezugwu, C. Chukwumere Ogomaka, O. Kennedy Omokere, S. Akinwumi Adeniji and G. Tiyeyosi Ogbenfore, "The convergence of blockchain, smart microgrid, and energy market," Electrica, Published online April 17, 2024. doi:10.5152/electrica.2024.23132