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The aim of the proposed work is to introduce a secure and interoperable Demand Response (DR) management platform that will assist Aggregators (or other relevant Stakeholders involved in DR business scenarios) in their decision making mechanisms over their portfolios of prosumers. This novel architecture incorporates multiple strategies and policies provided from energy market stakeholders, establishing a more modular and future-proof DR solution. By employing an innovative multi-agent decision making system and self-learning algorithms to enable aggregation, segmentation and coordination of several diverse clusters, consisting of supply and demand assets, a fully autonomous design will be delivered. This DR framework is further fortified in terms of data security by not only implementing cutting-edge blockchain infrastructure, but also by making use of Smart Contracts and Decentralized Applications (dApps) which will further secure and facilitate Aggregators-to-Prosumers transactions. The blockchain technologies will be combined with well-known open protocols (i.e. OpenADR) towards also supporting interoperability in terms of information exchange.
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978-1-5386-5160-6/18/$31.00 ©2018 IEEE
A Secured and Trusted Demand Response system
based on Blockchain technologies
Apostolos C. Tsolakis, Ioannis Moschos, Konstantinos Votis,
Dimosthenis Ioannidis, Tzovaras Dimitrios
Information Technologies Institute
Center for Research and Technologies – Hellas
{tsolakis, imoschos, kvotis, djoannid, dimitrios.tzovaras}@iti.gr
Pankai Pandey, Sokratis Katsikas
Department of Information Security and Communication
Technology
Norwegian University of Science and Technology
Gjøvik, Norway
{pankaj.pandey, sokratis.katsikas}@ntnu.no
Evangelos Kotsakis
Joint Research Center
Ispra, Italy
evangelos.kotsakis@ec.europa.eu
Raúl García-Castro
Computer Science School
Universidad Politécnica de Madrid
Madrid, Spain
rgarcia@fi.upm.es
Abstract—The aim of the proposed work is to introduce a
secure and interoperable Demand Response (DR) management
platform that will assist Aggregators (or other relevant
Stakeholders involved in DR business scenarios) in their decision
making mechanisms over their portfolios of prosumers. This
novel architecture incorporates multiple strategies and policies
provided from energy market stakeholders, establishing a more
modular and future-proof DR solution. By employing an
innovative multi-agent decision making system and self-learning
algorithms to enable aggregation, segmentation and coordination
of several diverse clusters, consisting of supply and demand
assets, a fully autonomous design will be delivered. This DR
framework is further fortified in terms of data security by not
only implementing cutting-edge blockchain infrastructure, but
also by making use of Smart Contracts and Decentralized
Applications (dApps) which will further secure and facilitate
Aggregators-to-Prosumers transactions. The blockchain
technologies will be combined with well-known open protocols
(i.e. OpenADR) towards also supporting interoperability in terms
of information exchange.
Keywords—blockchain, smart contracts, smart grid, demand
response.
I. I
NTRODUCTION
Demand Side Resources have already infiltrated the EU
energy market, playing a new active role in the electricity
distribution grids, as flexible components responding to new
grid fluctuations brought on by added levels of wind, solar and
other intermittent and volatile distributed generation resources.
Besides, recent EU targets aim in reaching a 20% share of
renewables by 2020 [1] which increases to at least a 27% share
by 2030 [2], with a simultaneous delivery of greenhouse gas
emissions reduction by 40%, hence creating a new energy
landscape is created. This new reality highlights a growing
need for increased operational flexibility as more renewable
capacity is added to the grid, with the application of Demand
Response (DR) strategies presenting the most efficient answer
to a reliable grid management. Either as a behavior-modifying
or an automated mechanism, DR is able to change the net load
shape and procurement of resources in response to the grid
needs. DR being a relatively new commercial mechanism (in
2013 Europe was almost entirely shut to DR) offers vast
margins of improvement to a rather unique energy market,
unwrapping opportunities for new solutions always in line
with the decarbonisation agenda. Taking also into
consideration the recent launch of the European Commission’s
Clean Energy Package in 2016 [3], the start of the large-scale
unlocking of Demand Response potential in Europe has been
marked.
Nevertheless, despite the numerous benefits by the DR
mechanisms introduced over the past decade, a lot of space
remains for improvements, especially in terms of
interoperability, security and privacy issues [4]. Given the vast
number of utilities, vendors and other energy market hardware
and software stakeholders, there is an abundance of
technologies currently deployed in the energy sector,
presenting a challenging heterogeneous landscape for DR
applications. Considering also the fact that the electricity
supply is of critical nature, the need for a secure energy flow is
imperative. Involved stakeholders must be able to verify the
authenticity and integrity of all DR signals at all times, while
untrusted entities must not be able to link DR signals to
specific stakeholders or infer private information about them.
In order to address these issues, and in the context of a novel
architecture that uses “virtual DR nodes”, the idea employs an
open well known standard (i.e. OpenADR 2.0) to ensure
interoperability, and although some level of standard
(Transport Layer Security – TLS) or high (CML signatures)
level security is provided, it also introduces an innovative
blockchain infrastructure, smart contracts and decentralized
applications to further fortify the information flow in the
envisioned DR schemes.
The paper is structured as follows: Following introduction,
literature review is presented in the form of related work on
blockchain technologies in Smart Grids and specifically
Demand Response schemes. In section III the proposed DR
framework is introduced, highlighting the extra layer novelty
along with the incorporated interoperability and security
features. Section IV emphasizes more on the Blockchain
IEEE INISTA (SMC) 2018, Thessaloniki, Greece, 3-5 July 2018
technologies within the proposed framework, followed by
Section V where major benefits of the proposed architecture
are discussed along with future endeavors, and finally, the
conclusions are drawn in Section VI.
II.
R
ELATED
W
ORK
As energy storage systems have just started to be utilized
in grid scale applications [5], electrical energy must still be
consumed as it is generated. And given also the fact that
energy demand keeps rising in an alarming rate, with new
generating plants not being an efficient solution, demand side
management strategies are called upon to take action, with
Demand Response being the most promising mechanism, at a
global level, that can enhance power systems’ flexibility
towards successfully absorbing RES penetration [6]. However,
DR schemes do not come without limitations. Two of the
limitations in terms of DR employment in the context of Smart
Grid technologies are interoperability and security.
To overcome the first limitation, significant steps have
been made by various entities such as the U.S. National
Institute of Standards and Technologies (NIST) [7], IEEE [8],
IEC [9], and CENELEC [10][11] through which a variety of
standards have been created to define Smart Grids in overall,
including DR. Nevertheless, with a highly diverse market in
terms of hardware when it comes to metering and smart
metering devices, these standards are most often overlooked.
To further address the issue of interoperability, a new alliance
was formed in 2010 to create an Open Automated Demand
Response standard for automating and simplifying DR [12].
Based on the OASIS Energy Interoperation Standard [13],
Open Automated Demand Response 2.0 [14] is an open and
standardized way for electricity providers and system
operators to communicate DR signals with each other and with
their customers using a common language over any existing
IP-based communications network. However, the most
common issue with open protocols is considered to be their
security. Even though OpenADR supports two security levels,
TLS and CML signatures, research has drifted towards another
security technology that upholds many more benefits, the
blockchain technology.
Recently, the introduction of Blockchain technology which
consists of a peer-to-peer decentralized transaction
environment can enhance the security, anonymity,
transparency and data integrity. Up until 2016, 80% of
Blockchain research was focus on the Bitcoin system [15],
which highlights the initial application of such technologies
for financial transactions without the need of a trusted
intermediary institution (e.g. a bank). However, the last few
years, blockchain technologies have erupted in multiple
domains, such as healthcare [16], real estate [17], and the
government sector [18].
Similarly to other domains, blockchain has also been
employed in the energy sector. Mihaylov et al. [19] firstly
worked on this by presenting another financial aspect of
blockchain application in energy transactions, especially for
renewable energy, by creating a decentralized digital currency
named NRGcoin. Through this new currency, without altering
the actual energy exchange, prices change depending on
measured supply and demand, whereas payment is defined by
trades in an open currency exchange market. Such approaches,
introduce a new market potential, where prosumers act on their
own self-interest, trade locally energy and ultimately balance
their supply and demand.
According to Mylrea et al. [20], a blockchain technology
of this caliber can offer various potential security and
optimization benefits if applied to the electricity infrastructure.
Namely, the adoption of distributed ledger technologies in the
energy ecosystem it can a) enhance the trustworthiness and
preserves the integrity of the data, b) support multifactor
verification through a distributed ledger, c) secure integrity of
transaction data, d) reduce costs of energy exchanges by
removing intermediaries, e) facilitate adoption and
monetization of DER transactions, f) facilitate consumer level
exchange of excess generation from DERs and EVs, through
smart contracts, g) enable consumers to also be producers,
providing additional storage and thus help substation
balancing from bulk energy systems, h) enable a more secure
distributed escrow to maintain ordered time stamped data
blocks that can’t be modified retroactively, i) enable rapid
detection of data anomalies may enhance the ability to detect
and respond to cyber-attacks, j) helps align currently dispersed
blockchain initiatives and facilitates technology deployment
through easy to implement and secure applications, and k)
potentially helps reduce transaction costs in the energy sector;
Moreover, Distribution System Operators (DSOs) can
leverage blockchain to receive energy transaction data
required to charge their network costs to consumers and
Transmission System Operators (TSOs) would have reduced
data requirements and constraints for clearing purposes.
In more detail, Paverd et al. [4] built upon OpenADR to
deal with security and privacy when dealing with demand
bidding using DR protocols. They enrich OpenADR with a
Trustworthy Remote Entity (TRE) that uses Trusted
Computing (TC), without forsaking though external entities.
Taking it a step further, Aitzhan et al. [21], explored the same
issues in decentralized Smart Grid energy trading, employing
blockchain technologies, and hence discarding the need for a
trusted third party, multi-signatures and anonymous encrypted
message propagation streams. Within a simulation
environment this system proved to be resistant to significant
known attacks. In a similar approach, but also including the
use of Smart Contracts, Pop et al. [22] were able to ensure the
programmatic definition of expected energy flexibility levels,
the validation of DR agreements, and balance between energy
demand and energy production in near real-time operation.
In most recent research, where energy sector cases [23][24]
have been specifically investigated in more technical detail
[25], promising results were also supported from the use of
blockchain technologies and smart contracts. However, they
also highlight the fact that current energy infrastructure is not
yet ready to support such technologies as the landscape it’s
still blur regarding the actors in a blockchain-based energy
transaction system. In addition, important technical aspects are
still not researched enough on the examined field (e.g. reactive
power flow) to enable practical application. Accordingly,
regulation and policies barriers should also be taken into
consideration, since this is a rather new field and not included
into existing or foreseen energy business models, rendering the
suitability of blockchain technology as the main ICT for
energy markets questionable [26].
From a different perspective, blockchain technology can be
further enhanced if combined with intelligent hardware
infrastructure that is based on the Internet of Things (IoT)
principles, a combination that allows automating time-
consuming workflows, achieving cryptographic verifiability,
as well as significant cost and time savings in the process [27].
When specifically applied for energy trading [28] towards
aiding Smart Grid operation [29], energy transactions can be
more reliable, efficient and effective while also exploiting
energy from microgrids, energy harvesting networks, and
vehicle-to-grids systems
In order to combine the interoperability provided by
OpenADR with the blockchain technology, and thus creating a
new paradigm in DR for future Smart Grid energy
transactions, an innovative architecture is proposed within the
proposed solution that combines both technologies into a
unified framework for an interoperable and secure DR design
that exploits to the utmost their individual benefits provided.
III. DELTA
A
RCHITECTURE
Within this rapidly evolving energy market, the proposed
solution comes as an ICT framework which aims to facilitate
the needs and reduce the risks of current energy market
stakeholders such as Aggregators and Retailers. In this context,
a secured Demand Response based on blockchain can support
the exploration of new market opportunities, effectively
reducing their carbon footprint and enabling better RES
exploitation.
From a technological perspective, the introduced solution
promotes a modular approach that delivers more power to
prosumers (both residential and commercial) over their energy
consumption and capacitates more stress-free Aggregators who
can establish DR strategies without the need to treat each
customer’s equipment separately by introducing a new layer to
the energy market. Fig. 1 depicts how the proposed concept
(namely DELTA) enables the transition from the current state-
of-the-art Aggregator-based DR, to the novel proposed de-
centralized ‘Virtual-Node‘-based architecture, which provides
energy clusters of customers (Virtual Nodes) that can be
handled as large prosumers from the Aggregators’ side.
By introducing these Virtual Nodes, the proposed
framework targets the hesitation of current aggregators to
utilize small customers in their energy portfolio. Outdated
metering technologies, undue complexity in the information
provided, lack of means for customers to respond to real-time
signals, limited actual commercially exploitable incentives, and
the absence of scalable integrated tools to support such
endeavours are some of the reasons that small and medium
customers have failed so far to meet their full potential when
participating in DR services and partially answers as to why
Aggregators avoid to include them in their assets. Thus,
resembling and enhancing the VPP concept [30], THE Virtual
Nodes represent the intermediary actors to facilitate and
securely deliver the essential energy information from a cluster
of end-users to the Aggregator. Finally, DR signals dispatched
will also take into consideration the overall stability of
distribution grid. The aggregator will have information about
the number and total size of customers per energy bus, per node
and will issue DR strategies that will not risk the grid stability.
Additionally, the role of the Aggregator is redefined: now,
not only it can include very small, residential-scale prosumers
into its portfolio, but also efficiently manage them, as
computational effort for such tasks is partially re-distributed
into the Virtual Nodes themselves. Hence, the DELTA
Aggregator will engage into a bi-directional DR
communication with the Virtual Nodes, after applying
advanced segmentation algorithms for creating DR Guidelines
that each Node should adhere to when dynamically re-
arranging the Node cluster. This new role will be further
improved by a Decision Support System that will analyze
current energy information by profiling every available Node,
evaluating the flexibility and availability of functional energy
assets, while also running simulations for effective and
efficient DR, flexibility and price forecasting, rendering
feasible to exploit existing and research DR strategies. On the
other hand, consumers/producers/prosumers will be equipped
with a fog-enabled lightweight toolkit in the form of a Fog-
Enabled Intelligent Device (FEID), providing the necessary
fog computation at end-users to handle DR signals, aggregate
information, act as a blockchain node (see the following
section), etc. FEIDs will be able to “learn” from previous
experience in order to correct next computational iteration in
order to provide more accurate information to the Node not
only in terms of real-time measurements but also for feasible
flexibility and realistic emission reduction scenarios.
Finally, this novel architecture is enhanced in terms of
interoperability through the OpenADR 2.0 standard, whereas
to fortify this non-proprietary and non-restrictive data
exchange that can lead to a low cost, information rich and
vendor-free solution, the DELTA DR framework will also
employ energy Smart Contracts that will capitalize upon
innovative blockchain infrastructure and will protect the
energy data flow. As can been seen in the following
architecture, different scenarios with different roles for each
stakeholder involved will be examined in order to fully
understand the capabilities of a decentralized energy
transaction scheme in the context of the existing energy
market hierarchy. Nevertheless, scenarios were centralized
control figures are omitted will also be investigated.
IV. P
ROPOSED
S
ECURITY
The DELTA security framework will try to couple
OpenADR security features and blockchain technology. From a
different topology of blockchain nodes, to innovative smart
contracts and easy to used dApps, a completely new security
suite will be designed, implemented and delivered to support
future DR mechanisms in a decentralized active Smart Grid.
Following a bottom up approach, the blockchain technologies
are envisioned as follows:
A. Blockchain Infrastructure
Investing on the proposed architecture presented above, the
overall blockchain infrastructure will form a fully functional
permissioned-based Ethereum blockchain network that will be
enforced through an optimally selected consensus protocol (e.g.
Proof-of-Stake, Proof-of-Elapsed-Time, etc.). In this direction a
blockchain permission based management system will be
utilizing regarding the Fog-Enabled Intelligent Devices to act
either as full blockchain nodes (nodes with mining capability)
or light blockchain nodes, based on topology and
computational power requirements on each deployed asset.
Since the DR framework targets a large amount of energy
customers through the proposed clustering process, a large
amount of FEIDs is expected to be included in the overall
solution (even if for the needs of the project only a few FEIDs
will be actually deployed). By adopting this approach, a rather
large amount of blockchain nodes is expected, making the
blockchain network rather durable to 51% attacks, where more
than half of total hashing power is concentrated in a few mining
nodes. In addition, Self-enforcing smart contracts are defined
and used to implement in a programmatic manner the levels of
energy demand response flexibility, associated incentive, as
well as rules for balancing the energy demand with the energy
production. Regarding incentives, and given the fact that the
proposed blockchain framework will not be linked directly to
any known digital currency (e.g. bitcoin, ethereum, etc.),
however the possibility of the adoption of a token-based system
can be used in order to better regulate energy transactions
among the various peers in the energy market scheme
proposed.
B. Smart Contracts
The introduced smart contracts will build upon the
Ethereum platform and use tools like EtherScripter and Solidity
to program smart contracts, while also using tools for Eclipse
IDE for smart contract applications. Furthermore, smart
contracts written in various languages, such as Serpent, Viper
and LLL, can be subsequently compiled into bytecode and
deployed to run on the Ethereum blockchain, thus, providing
interoperability regarding smart contract application.
The proposed Smart Contracts designed over the (DELTA)
blockchain-based distributed ledger will be used to ensure the
security and trust of the energy information exchange within
the DELTA energy network, enabling both energy data
traceability and secure access for stakeholders through the use
of certificates, relevant security standards and state of the art
security and privacy algorithms. In more detail, within the DR
framework an innovative design for a fully automated complex
contractual agreements system will be created, in which an
energy producer and a consumer can enter into a contract with
predefined conditions (e.g. capacity limits, number of daily
requests, incentives policy, contract expiration date etc.) that
will autonomously and securely regulate the energy supply and
payment. For instance, the smart contract can be programmed
such that if the customer fails to make payment on time, then
Fig. 1. DELTA Interoperable & Secure Demand Response Framework
the smart contract’s execution would automatically arrange for
the suspension of power supply until the payment is settled.
Moreover, Smart Contracts can be programmed to mitigate
(hedge) the risks associated with the fluctuation in energy
prices, security risks, and so on [31]. Through this
implementation it is expected that key benefits of Smart
Contracts will be fully exploited, including but not limited to
the ability to: 1) reduce transaction costs in creating,
monitoring, and reacting to obligations; 2) use new properties
for analyzing contractual arrangements that are only possible
when they exist in machine-processable form; and 3) enable
autonomous, computer-to-computer, contracting.
C. Decentralized Applications
To provide a complete solution to the energy market it is
necessary to develop the appropriate tools for the involved
stakeholders that will give them the capability to have access to
the DELTA blockchain infrastructure. To that end, a set of
decentralized applications (dApps) will be developed. These
dApps will give a user-friendly front-end environment to
access the DELTA Smart Contracts towards connecting
efficiently and securely to the DELTA blockchain
infrastructure, using existing known technologies (e.g. web3.js
Ethereum JavaScript API). Hence, the DELTA stakeholders
will be given roles, attributes, signatures, and other
authentication and authorization attributes to fully monitor and
manage the potential of the DELTA DR framework.
Each Smart Contract is accessed through a dedicated dApp,
which can be a web-based, mobile or desktop application,
providing access to the information exchanged in a
decentralized manner, as depicted in Fig. 2.
V. C
ONCLUSION
&
F
UTURE
W
ORK
This paper presented a novel DR architecture for
interoperable and secure energy transactions through the
combination of an open DR standard (OpenADR 2.0) and
blockchain technologies that will be implemented in the
activities foreseen within an EU H2020 funded RIA project:
DELTA. The envisioned DELTA DR framework proposed the
use of a special type of devices to each energy node, the fog-
enabled intelligent device - FEID, that will be capable of
undertaking not only energy-related tasks, such as aggregation
of measurements, flexibility calculation, forecasting, etc., but
also act as a blockchain node, either as a full or light type of
blockchain node, thus fortifying every DR related transaction
from and/or to each energy asset. Furthermore, the novel role
of the DELTA Aggregator is expected to define new limits
under which centralized control will be deployed in DR energy
markets, whereas efficient clustering of nodes will not only
improve portfolio handling, but also support the use of
blockchain technologies.
The overall solution, as currently designed, is based on the
open Ethereum framework, however other technologies are
expected to be also researched (e.g. Hyperledger, IOTA,
Tendermint, etc.) in order to present a more holistic approach
on designing an energy DR-related blockchain network that
will offer the optimal security-efficiency trade-off.
A
CKNOWLEDGMENT
This work is partially funded by the European Union’s
Horizon 2020 Research and Innovation Programme through
DELTA project under Grant Agreement No. 773960.
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2016.
... Contract type [24] General contract for low voltage clients based on legislation. National regulators provide standard contractual clauses that must be complied with by all suppliers. ...
... Figure 9 presents a concept for a trading platform using P2P and blockchain. It considers that, despite the importance of the decentralized model, it is still relevant the participation of the DSO in order to maintain the balance of the network and manage the electrical power grid connections [24]. Each node of the electrical power grid must publish information about its demand or generation of energy needs in the future market. ...
... They also contain information about bids, price components, traded and available quantities, market information and prosumers systems [23]. They also contain other relevant information, such as contract duration, capacity limits, number of allowed transactions, incentives and suspension mechanisms [24]. Smart contracts are a part of the blockchain code, contribute for the transparency of all the process and do not need a central entity to operate [62]. ...
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The decentralization in the electrical power grids has gained increasing importance, especially in the last two decades, since transmission system operators (TSO), distribution system operators (DSO) and consumers are more aware of energy efficiency and energy sustainability issues. Therefore, globally, due to the introduction of energy production technologies near the consumers, in residential and industrial sectors, new scenarios of distributed energy resources (DER) are emerging. In order to guarantee an adequate power management in the electrical power grids, incorporating producers, consumers and producers-consumers (prosumers) together, it is important to adopt intelligent systems and platforms that allow the provision of information on energy consumption and production in real time, as well as for obtaining a fair price for the sale and purchase of energy. In this paper, we analyze the literature to identify the appropriate solutions to implement a decentralized electrical power grid based on sensors, blockchain and smart contracts, evaluating the current state of the art and pilot projects already in place. We also discuss a proposal for a power grid model, with renewable energy production, combining Internet of Things, blockchain and smart contracts.
... The goal of energy distribution is to meet electricity demand, so as to achieve reasonable energy management. Tsolakis et al. [169] establish a secure demand response platform based on OpenADR and blockchain. In this platform, OpenADR can make the equipment respond to peaks and troughs of electricity consumption, thereby reducing power consumption and realizing a reasonable energy distribution. ...
... In order to enhance robustness and realize supervision of the system, an information collection center is established in this system. Like [169], Van et al. [172] design an energy management platform for smart buildings, aiming to meet the user's demand for renewable energy. At the same time, the authors conduct an experimental test based on Ethereum and employ smart contracts for automatic management and monitoring. ...
... • The decentralized nature of blockchain facilitates efficient energy management in smart grids, including energy distribution and demand side management. Many Wang et al. [178] Market balance Crowdsourcing -Hyperledger Cutsem et al. [172] Demand response Smart building PoW Ethereum Pop et al. [144] Demand response Prosumer PoS Ethereum Ioannis et al. [169] Demand response Prosumer -Ethereum Edmonds et al. [30] Demand response Smart homes PoW Ethereum Shao et al. [151] Connection freely Any iPoW Semi-center Tarek et al. [9] Flow optimization Prosumer -Private Li et al. [86] Flow optimization Prosumer dPoS Bitcoin Dang et al. [21] Load optimization Big industrial PoW -George et al. [77] Distribution Prosumer --Rafal et al. [157] Distribution Any Hybrid Ethereum Fan et al. [32] Flexible regulation Any dPoS Consortium Wu et al. [184] Cost optimization Any PoC Bitcoin Afzal et al. [2] Cost optimization Smart homes -Ethereum Yahaya et al. [189] Cost optimization Smart homes PoW Ethereum solutions use blockchain to carry out distributed transformation of the smart grid so that it can adapt to the management of new distributed energy sources. Distributed management can realize the decentralization of management rights and solve the centralized management problems of traditional power grids, which can facilitate the conversion of consumers to prosumers. ...
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Recent years have witnessed an increasing interest in the blockchain technology, and many blockchain-based applications have been developed to take advantage of its decentralization, transparency, fault tolerance, and strong security. In the field of smart grids, a plethora of proposals have emerged to utilize blockchain for augmenting intelligent energy management, energy trading, security and privacy protection, microgrid management, and energy vehicles. Compared with traditional centralized approaches, blockchain-based solutions are able to exploit the advantages of blockchain to realize better functionality in smart grids. However, the blockchain technology itself has its disadvantages in low processing throughput and weak privacy protection. Therefore, it is of paramount importance to study how to integrate blockchain with smart grids in a more effective way so that the advantages of blockchain can be maximized and its disadvantages can be avoided. This article surveys the state-of-the-art solutions aiming to integrate the emergent blockchain technology with smart grids. The goal of this survey is to discuss the necessity of applying blockchain in different components of smart grids, identify the challenges encountered by current solutions, and highlight the frameworks and techniques used to integrate blockchain with smart grids. We also present thorough comparison studies among blockchain-based solutions for smart grids from different perspectives, with the aim to provide insights on integrating blockchain with smart grids for different smart grid management tasks. Finally, we list the current projects and initiatives demonstrating the current effort from the practice side. Additionally, we draw attention to open problems that have not yet been tackled by existing solutions, and point out possible future research directions.
... In paper [43], M. Shen et al. introduced an optimal blockchain-assisted reliable device authentication technique (BASA) for multi-dimensional IIoT, although they noted that the frequent data exchange raised communication overhead. Tsolakis et al. (2018) proposed a method for the reliable connection of electricity consumption amid a network of terminal operators and a virtual node. It provides a demand response solution via the use of a blockchain-based architecture [47]. ...
... Tsolakis et al. (2018) proposed a method for the reliable connection of electricity consumption amid a network of terminal operators and a virtual node. It provides a demand response solution via the use of a blockchain-based architecture [47]. At the client-side, the system comprises fog-enabled intelligent devices (FEID) [21] and a cloud-based consensus mechanism with energy providers [45,49]. ...
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Blockchains are costly in terms of computing and involve high overhead bandwidth and delays that are not suitable for smart appliances. Enhancing the precision of output, quality, and delivery of data is particularly critical in Machine Learning. The combination of Machine Learning and Blockchain technologies may create accurate results. The Industrial IoT (IIoT), has quickly been established and is getting huge attention in educational areas and manufacturing, but IoT solitude danger and privacy exposures are developing by lack of important security technology. Because blockchain technique’s regionalization and information revelation were planned as a decentralized and distributed method to give assurance security and motivate the development of the IoT and IIoT. The Blockchain Driven Cyber-Physical system (BDCPS) is supported by IoT and cloud services. BDCPS will confirm the statement utilizing the Intelligent Agreements functionality and the trust-less peer-to-peer centrally controlled database showcase by a tiny-scale real-life Blockchain to the IoT system. In this study, a private Blockchain can be run on a separate board system and paralleled to a microcontroller with Smart devices. The suggested system uses blockchain technology to resolve issues such as lightweight, evaporation, warehousing transactions, and shipment time. The data flow of Blockchain is intended to demonstrate the application of machine learning to food traceability. Finally, to extend shelf life, a supply chain employs dependable and accurate data. This paper shows a relevant blockchain and machine learning research that identifies numerous key elements of combining the two technologies such as Blockchain and Machine Learning, including an overview, benefits, and applications.
... In this paper, we extend our previous work in [1] to analyze attack paths between CPSs on one hand, and we improve the method proposed therein for selecting a set of security controls that minimizes both the residual risk and the cost. We have used the DELTA demand-response management platform for the energy market stakeholders such as Aggregators and Retailers [2] as a use case to illustrate the workings of the proposed approaches. ...
... Section 4 presents our proposal for analyzing attack paths, and Sect. 5 presents our proposed approach to selecting the optimal set of security controls. Section 6 illustrates the workings of the proposed approaches to the DELTA platform [2]. Finally, Sect. ...
... In consideration of the above, situational awareness in cybersecurity allows network administrators and security analysts to gather heterogeneous data, such as network traffic data and discovered vulnerabilities, to gain a more thorough understanding of the surrounding environment. On top of that, the interpretation of that information provides insight and knowledge of the network, while assisting in the predictions about the foreseeable future [10]. ...
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The ever-increasing number of internet-connected devices, along with the continuous evolution of cyber-attacks, in terms of volume and ingenuity, has led to a widened cyber-threat landscape, rendering infrastructures prone to malicious attacks. Towards addressing systems’ vulnerabilities and alleviating the impact of these threats, this paper presents a machine learning based situational awareness framework that detects existing and newly introduced network-enabled entities, utilizing the real-time awareness feature provided by the SDN paradigm, assesses them against known vulnerabilities, and assigns them to a connectivity-appropriate network slice. The assessed entities are continuously monitored by an ML-based IDS, which is trained with an enhanced dataset. Our endeavor aims to demonstrate that a neural network, trained with heterogeneous data stemming from the operational environment (common vulnerability enumeration IDs that correlate attacks with existing vulnerabilities), can achieve more accurate prediction rates than a conventional one, thus addressing some aspects of the situational awareness paradigm. The proposed framework was evaluated within a real-life environment and the results revealed an increase of more than 4% in the overall prediction accuracy.
... Minimization of grid energy losses, voltage profile improvement and cost reduction of environmental emissions. • Implement the proposed DR scheme in a more sophisticated way, including technologies, such as Blockchain [33]. This would enhance the business perspective of the proposed framework, while addressing more practical applications of this study. ...
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Over the past few decades, industry and academia have made great strides to improve aspects related with optimal energy management. These include better ways for efficient energy asset management, generating great opportunities for optimization of energy distribution, discomfort minimization, energy production, cost reduction and more. This paper proposes a framework for a multi-objective analysis, acting as a novel tool that offers responses for optimal energy management through a decision support system. The novelty is in the structure of the methodology, since it considers two distinct optimization problems for two actors, consumers and aggregators, with solution being able to completely or partly interact with the other one is in the form of a demand response signal exchange. The overall optimization is formulated by a bi-objective optimization problem for the consumer side, aiming at cost minimization and discomfort reduction, and a single objective optimization problem for the aggregator side aiming at cost minimization. The framework consists of three architectural layers, namely, the consumer, aggregator and decision support system (DSS), forming a tri-layer optimization framework with multiple interacting objects, such as objective functions, variables, constants and constraints. The DSS layer is responsible for decision support by forecasting the day-ahead energy management requirements. The main purpose of this study is to achieve optimal management of energy resources, considering both aggregator and consumer preferences and goals, whilst abiding with real-world system constraints. This is conducted through detailed simulations using real data from a pilot, that is part of Terni Distribution System portfolio.
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Recent years have witnessed an increasing interest in the blockchain technology, and many blockchain-based applications have been developed to take advantage of its decentralization, transparency, fault tolerance, and strong security. In the field of smart grids, a plethora of proposals have emerged to utilize blockchain for augmenting intelligent energy management, energy trading, security and privacy protection, microgrid management, and energy vehicles. Compared with traditional centralized approaches, blockchain-based solutions are able to exploit the advantages of blockchain to realize better functionality in smart grids. However, the blockchain technology itself has its disadvantages in low processing throughput and weak privacy protection. Therefore, it is of paramount importance to study how to integrate blockchain with smart grids in a more effective way so that the advantages of blockchain can be maximized and its disadvantages can be avoided. This article surveys the state-of-the-art solutions aiming to integrate the emergent blockchain technology with smart grids. The goal of this survey is to discuss the necessity of applying blockchain in different components of smart grids, identify the challenges encountered by current solutions, and highlight the frameworks and techniques used to integrate blockchain with smart grids. We also present thorough comparison studies among blockchain-based solutions for smart grids from different perspectives, with the aim to provide insights on integrating blockchain with smart grids for different smart grid management tasks. Finally, we list the current projects and initiatives demonstrating the current effort from the practice side. Additionally, we draw attention to open problems that have not yet been tackled by existing solutions, and point out possible future research directions.
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Given the ongoing transition towards a more decentralised and adaptive energy system, the potential of blockchain-enabled smart contracts for the energy sector is being increasingly recognised. Due to their self-executing, customisable and tamper-proof nature, they are seen as a key technology for enabling the transition to a more efficient, transparent and transactive energy market. The applications of smart contracts include coordination of smart electric vehicle charging, automated demand-side response, peer-to-peer energy trading and allocation of the control duties amongst the network operators. Nevertheless, their use in the energy sector is still in its early stages as there are many open challenges related to security, privacy, scalability and billing. In this paper, we systematically review 178 peer-reviewed publications and 13 innovation projects, providing a thorough analysis of the strengths and weaknesses of smart contracts used in the energy sector. This work offers a broad perspective on the opportunities and challenges that stakeholders using this technology face, in both current and emergent markets, such as peer-to-peer energy trading platforms. To provide a roadmap for researchers and practitioners interested in the technology, we propose a systematic model of the smart contracting process, by developing a novel 6-layer architecture, as well as presenting a sample energy contract in pseudocode form and as open-source code. Our analysis focuses on the two mainstream application areas we identify for smart contract use in this area: energy and flexibility trading, and distributed control. The paper concludes with a comprehensive, critical discussion of the advantages and challenges that must be addressed in the area of smart contracts and blockchains in energy, and a set of recommendations that researchers and developers should consider when applying smart contracts to energy system settings.
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Blockchain technology is highly coupled with cryptocurrencies; however, it provides several other potential use cases, related to energy and sustainability, Internet of Things (IoT), smart cities, smart mobility and more. Blockchain can offer security for Electric Vehicle (EV) transactions in the Internet of Vehicles (IoV) concept, allowing electricity trading to be performed in a decentralized, transparent and secure way. Additionally, blockchain provides the necessary functionalities for IoV decentralized application development, such as data exchange, personal digital identity, sharing economy and optimized charging pattern. Moreover, blockchain technology has the potential to significantly increase energy efficiency, decrease management costs and guarantee the effective use of the energy recourses. Therefore, its application in the IoV concept provides secure, autonomous and automated energy trading between EVs. While several studies on blockchain technology in smart grids have been conducted, insufficient attention has been given to conducting a detailed review and state-of-the-art analysis of blockchain application in the IoV domain. To this end, this work provides a systematic literature review of blockchain-based applications in the IoV domain. The aim is to investigate the current challenges of IoV and to highlight how blockchain characteristics can contribute to this emerging paradigm. In addition, limitations and future research directions related to the integration of blockchain technology within the IoV are discussed. To this end, this study incorporates the theoretical foundations of several research articles published in scientific publications over the previous five years, as a method of simplifying our assessment and capturing the ever-expanding blockchain area. We present a comprehensive taxonomy of blockchain-enabled applications in the IoV domain, such as privacy and security, data protection and management, vehicle management, charging optimization and P2P energy trading, based on a structured, systematic review and content analysis of the discovered literature, and we identify key trends and emerging areas for research. The contribution of this article is two-fold: (a) we highlight the limitations presented in the relevant literature, particularly the barriers of blockchain technology and how they influence its integration into the IoV and (b) we present a number of research gaps and suggest future exploratory areas.
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One of the main trends in the evolution of smart grids is trans-active energy, where distributed energy resources, e.g. smart meters, develop towards Internet-of-Things (IoT) devices enabling prosumers to trade energy directly among each other, without the need of involving any centralised third party. The expected advantages in terms of cost-effectiveness would be significant, indeed technical solutions are being investigated and large-scale deployment are planned by major utilities companies. However, introducing transactive energy in the smart grid entails new security threats, such as forging energy transactions. This paper introduces an infrastructure to support reliable and cost-effective transactive energy, based on blockchain and smart contracts, where functionalities are implemented as fully decentralised applications. Energy transactions are stored in the blockchain, whose high replication level ensures stronger guarantees against tampering. Energy auctions are carried out according to transparent rules implemented as smart contracts, hence visible to all involved actors. Threats deriving from known vulnerabilities of smart meters are mitigated by temporarily keeping out exposed prosumers and updating their devices as soon as security patches become available.
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The increasing amount of renewable energy sources in the energy system calls for new market approaches to price and distribute the volatile and decentralized generation. Local energy markets, on which consumers and prosumers can trade locally produced renewable generation directly within their community, balance generation and consumption locally in a decentralized approach. We present a comprehensive concept, market design and simulation of a local energy market between 100 residential households. Our approach is based on a distributed information and communication technology, i.e. a private blockchain, which underlines the decentralized nature of local energy markets. Thus, we provide energy prosumers and consumers with a decentralized market platform for trading local energy generation without the need of a central intermediary. Furthermore, we present a preliminary economic evaluation of the market mechanism and a research agenda for the technological evaluation of blockchain technology as the local energy market’s main information and communication technology.
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The present paper considers some technical issues related to the energy blockchain paradigm applied to microgrids. In particular, what appears from the study is that the superposition of energy transactions in a microgrid creates a variation of the power losses in all the branches of the microgrid. Traditional power losses allocation in distribution systems takes into account only generators while, in this work, a real-time attribution of power losses to each transaction involving one generator and one load node is done by defining some suitable indices. Besides, the presence of P-V nodes increases the level of reactive flows and provides a more complex technical perspective. For this reason, reactive power generation for voltage support at P-V nodes poses a further problem of reactive power flow exchange, that is worth of investigation in future works in order to define a possible way of remuneration. The experimental section of the paper considers a Medium Voltage microgrid and two different operational scenarios. IEEE
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The increasing penetration of renewable energy sources (RES) in power systems intensifies the need of enhancing the flexibility in grid operations in order to accommodate the uncertain power output of the leading RES such as wind and solar generation. Utilities have been recently showing increasing interest in developing Demand Response (DR) programs in order to match generation and demand in a more efficient way. Incentive- and price-based DR programs aim at enabling the demand side in order to achieve a range of operational and economic advantages, towards developing a more sustainable power system structure. The contribution of the presented study is twofold. First, a complete and up-to-date overview of DR enabling technologies, programs and consumer response types is presented. Furthermore, the benefits and the drivers that have motivated the adoption of DR programs, as well as the barriers that may hinder their further development, are thoroughly discussed. Second, the international DR status quo is identified by extensively reviewing existing programs in different regions.