Conference PaperPDF Available

Abstract and Figures

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.
Content may be subject to copyright.
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}
Pankai Pandey, Sokratis Katsikas
Department of Information Security and Communication
Norwegian University of Science and Technology
Gjøvik, Norway
{pankaj.pandey, sokratis.katsikas}
Evangelos Kotsakis
Joint Research Center
Ispra, Italy
Raúl García-Castro
Computer Science School
Universidad Politécnica de Madrid
Madrid, Spain
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
I. I
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
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.
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.
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
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.
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
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
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.
This work is partially funded by the European Union’s
Horizon 2020 Research and Innovation Programme through
DELTA project under Grant Agreement No. 773960.
[1] EC COM (2010) 2020: Europe 2020 A strategy for smart, sustainable
and inclusive growth, March 2010 [Online]. Available:
[2] EC COM (2014) 520: Energy Efficiency and its contribution to energy
security and the 2030 Framework for climate and energy policy, July
2014, [Online]. Available:
[3] Explicit Demand Response In Europe – Mapping the Markets 2017,
Smart Energy Demand Coalition, 2017 [Available on
[4] A. Paverd, A. Martin, and I. Brown, "Security and privacy in smart grid
demand response systems," International Workshop on Smart Grid
Security. Springer, Cham, 2014.
[5] A. Castillo, and D. F. Gayme, “Grid-scale energy storage applications in
renewable energy integration: A survey,” Energy Conversion and
Management, vol. 87, pp. 885-894, 2014.
[6] N. G. Paterakis, O. Erdinç, and J.P. Catalão, “An overview of Demand
Response: Key-elements and international experience,” Renewable and
Sustainable Energy Reviews, vol. 69, pp. 871-891, 2017.
[7] C. Greer, D. A. Wollman, D. E. Prochaska, P. A. Boynton, J. A. Mazer,
C. T. Nguyen, G. J. FitzPatrick, T. L. Nelson, G. H. Koepke, A. R.
Hefner Jr., V. Y. Pillitteri, T. L. Brewer, N. T. Golmie, D. H. Su, A. C.
Eustis, D. G. Holmberg, S. T. Bushby, “NIST framework and roadmap
for smart grid interoperability standards, release 3.0 (No. Special
Publication (NIST SP)-1108r3), 2014.
[8] IEEE Smart Grid Standards. [Online]. Available:
[9] IEC 61850 Power Utility Automation [Online]. Available:
[10] CEN-CENELEC-ETSI Smart Grid Coordination Group Smart Grid
Reference Architecture, 11-2012 [Online]. Available:
[11] CEN-CENELEC-ETSI Smart Grid Coordination Group,
SEGCG/M490/G Smart Grid Set of Standards 24, Version 4.1 draft v0,
[12] OpenADR Alliance [Online]. Available:
[13] OASIS Energy Interoperation TC [Online]. Available:
[14] OpenADR 2.0 [Online]. Available:
Fig. 2. High Level dApp representation
[15] J. Yli-Huumo, D. Ko, S. Choi, S. Park, and K. Smolander, “Where is
current research on blockchain technology?—a systematic review,” PloS
one, vol. 11, no. 10, 2016.
[16] S. Sethi, “Healthcare Blockchain leads To Transform Healthcare
Industry,” International Journal of Advance Research, Ideas and
Innovations in Technology, vol. 4, no. 1, pp.607-608, 2018.
[17] J. Veuger, “Trust in a viable real estate economy with disruption and
blockchain,” Facilities, vol. 36, no. 1/2, pp. 103-120, 2018.
[18] M. Walport, “Distributed ledger technology: beyond block chain,'' U.K.
Government Of Sci., London, U.K., Tech. Rep., Jan. 2016. [Online].
[19] M. Mihaylov, S. Jurado, N. Avellana, K. Van Moffaert, I. M. de Abril,
and A. Nowé, “NRGcoin: Virtual currency for trading of renewable
energy in smart grids,” IEEE In European Energy Market (EEM), 2014,
11th International Conference on the, pp. 1-6, IEEE.
[20] M. Mylrea, and S. N. G. Gourisetti, “Blockchain for smart grid
resilience: Exchanging distributed energy at speed, scale and security,”
In Resilience Week (RWS), pp. 18-23, 2017, IEEE.
[21] N. Z. Aitzhan, and D. Svetinovic, “Security and privacy in decentralized
energy trading through multi-signatures, blockchain and anonymous
messaging streams,” IEEE Transactions on Dependable and Secure
Computing, 2016.
[22] C. Pop, T. Cioara, M. Antal, I. Anghel, I. Salomie, and M. Bertoncini,
“Blockchain Based Decentralized Management of Demand Response
Programs in Smart Energy Grids,” Sensors, 2018, vol. 18(1), p. 162.
[23] R. Chitchyan, and J. Murkin, “Review of Blockchain Technology and its
Expectations: Case of the Energy Sector,” arXiv preprint
arXiv:1803.03567, 2018.
[24] S. Albrecht, S. Reichert, J. Schmid, J. Strüker, D. Neumann, and G.
Fridgen, “Dynamics of Blockchain Implementation-A Case Study from
the Energy Sector,” In Proceedings of the 51st Hawaii International
Conference on System Sciences, 2018.
[25] M. L. Di Silvestre, P. Gallo, M. G. Ippolito, E. R. Sanseverino, G. Zizzo,
“A Technical Approach to P2p Energy Transactions in Microgrids”,
IEEETransactions on Industrial Informatics, 2018 [Accepted for
[26] E. Mengelkamp, B. Notheisen, C. Beer, D. Dauer, and C.Weinhardt, “A
blockchain-based smart grid: towards sustainable local energy markets,”
Computer Science-Research and Development, vol. 33, no. 1-2, pp. 207-
214, 2018.
[27] K. Christidis, and M. Devetsikiotis, “Blockchains and smart contracts for
the internet of things,” IEEE Access, 2016, vol. 4, pp. 2292-2303.
[28] Z. Li, J. Kang, R. Yu, D. Ye, Q. Deng, Y. Zhang, “Consortium
Blockchain for Secure Energy Trading in Industrial Internet of Things,”
IEEE Transactions on Industrial Informatics, 2017.
[29] F. Lombardi, L. Aniello, S. De Angelis, A. Margheri, and V. Sassone,
“A blockchain-based infrastructure for reliable and cost-effective IoT-
aided smart grids”, a PETRAS, IoTUK & IET Conference, Forum &
Exhibition, 2018.
[30] H. Saboori, M. Mohammadi, and R. Taghe, “Virtual power plant (VPP),
definition, concept, components and types,” In Power and Energy
Engineering Conference (APPEEC), 2011 Asia-Pacific, pp. 1-4, 2011,
[31] P. Pandey, and E. Snekkenes, “Using Financial Instruments to Transfer
the Information Security Risks,” Future Internet, vol. 8, no. 2, p.20,
... Guardian was implemented and evaluated in a real-world testbed, and the results showed that it can significantly improve the efficiency and security of demand response management. In [28], the authors propose a blockchain-based system for demand response that provides security and trust between the different participants in the system. The system uses a private blockchain to ensure that only authorised participants can access the data, and it uses a smart contract to automate the demand response process. ...
... Controlling communication channels, capturing session IDs, launching identity-related attacks and transactional data privacy attacks [26] Tariff decisions Oblivious transfer; data transformation with distance-preserving embedding Reveal other information than the minimum distance between the customers' load profile forecast and the template load profiles of the utility provider [5] DR management Data minimization with miner selection Invalid transactions stored in the BC [11] [27] DR management ABAC and hyperledger channels for for data isolation Attempts to break the confidentiality of user data [12] DR management ABAC and hyperledger channels for for data isolation Attempts to break the confidentiality of user data [28] DR management Data minimization with intermediator (Virtual Nodes) Not specific privacy threats; main concerns are about correct contracts execution [29] DR management Trivial Secret Sharing Malicious data miners, cheating users and infrastructure nodes participants, and it uses a payment channel to ensure that the participants are paid fairly. In [29] authors propose a privacy-preserving blockchain solution to support demand response in energy trading. ...
... All solutions provide privacy protection for measurement data. Specifically, authors in [28] use a private blockchain to ensure that only authorised participants can access the data and smart contracts to automate the demand response process. The solution proposed in [12] uses off-chain storage to save measurement data, zero-knowledge proofs to protect the privacy between aggregators and prosumers, and a public blockchain to record measurements fingerprints and energy transactions. ...
Full-text available
In the past few years, blockchain technology has emerged in numerous smart grid applications, enabling the construction of systems without the need for a trusted third party. Blockchain offers transparency, traceability, and accountability, which lets various energy management system functionalities be executed through smart contracts, such as monitoring, consumption analysis, and intelligent energy adaptation. Nevertheless, revealing sensitive energy consumption information could render users vulnerable to digital and physical assaults. This paper presents a novel method for achieving a dual balance between privacy and transparency, as well as accountability and verifiability. This equilibrium requires the incorporation of cryptographic tools like Secure Multiparty Computation and Verifiable Secret Sharing within the distributed components of a multi-channel blockchain and its associated smart contracts. We corroborate the suggested architecture throughout the entire process of a Demand Response scenario, from the collection of energy data to the ultimate reward. To address our proposal’s constraints, we present countermeasures against accidental crashes and Byzantine behavior while ensuring that the solution remains appropriate for low-performance IoT devices.
... 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]. ...
Full-text available
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.
... Unobservability is pursued by [3] [20] [13] [21] [14] with the help of Hyperledger Fabric private channels which provides data isolation [20] [13], or with intermediators, or with miners selection [21]. ...
... Innovative solutions were also found, such as transactive energy control (TEC), for continuous response to system imbalance through intelligent economic signals [17]. In this sense, the TEC developed research includes advanced innovative data communication structures such as "Blockchain" data in [18]. That shows the strong relationship between DR programs, AI-based tools, smart grids, and ICT. ...
Full-text available
International agreements support the modernization of electricity networks and renewable energy resources (RES). However, these RES affect market prices due to resource variability (e.g., solar). Among the alternatives, Demand Response (DR) is presented as a tool to improve the balance between electricity supply and demand by adapting consumption to available production. In this sense, this work focuses on developing a DR model that combines price and incentive-based demand response models (P-B and I-B) to efficiently manage consumer demand with data from a real San Juan—Argentina distribution network. In addition, a price scheme is proposed in real time and by the time of use in relation to the consumers’ influence in the peak demand of the system. The proposed schemes increase load factor and improve demand displacement compared to a demand response reference model. In addition, the proposed reinforcement learning model improves short-term and long-term price search. Finally, a description and formulation of the market where the work was implemented is presented.
... Interoperability is the ability of different blockchains to exchange information without a third party. Interoperability has become a recent trend in blockchain research, with a wide range of research work citing its benefits [201,202,203]. For instance, in a multi-microgrid environment, each microgrid can have its own blockchain platform and can interact with other nearby microgrid blockchains to transact energy. ...
Full-text available
Abstract Blockchain is a powerful technology to facilitate decarbonization, decentralization, digitalization, and democratization (4D's) of the energy systems of the future. The 4D's are the driving forces of transition into new energy systems that are more sustainable, resilient, efficient, and equitable. Although this technology can be applied to a wide spectrum of applications in the power sector, a set of challenges and limitations still need to be addressed to facilitate a full‐scope implementation in energy systems. This paper presents an overview of blockchain technology from its inception through its most recent evolution and presents a thematic review of state of the art in the application of this technology in power systems. Further, it addresses the barriers preventing the power sector from large‐scale, full‐scope adoption of this technology. Finally, the emerging blockchain trends in the near future will be discussed and its potential to facilitate a secure, decentralized energy trading platform will be investigated.
Full-text available
Satisfying the world’s rapidly increasing demands in energy via the optimized management of available resources is becoming one of the most important research trends worldwide. When it comes to energy, it is very important to talk about decentralization, security, traceability and transparency. Thus, over the last few years, numerous research works have presented blockchain technology as the best novel business platform enabling a secure, transparent and tamper-proof energy management solution. In this paper, we conducted a systematic literature review (SLR) using the PRISMA framework of the different existing research studies related to the use of the blockchain technology in the energy sector, published between 2008 and 2021. We identified a total of 769 primary studies after intensive manual analysis and filtering, which we thoroughly assessed using various criteria to address six main research questions that covered the blockchain types, applications and platforms in the energy sector, the energy source types for which blockchain platforms are implemented, the emergent technologies that are combined to blockchain solutions, and the types of consensuses used in energy blockchains. Based on the collected survey data, we built a database to categorize the existing research works, identify research trends, and highlight knowledge gaps and potential areas for additional field study.
Full-text available
The concept of the internet of energy (IoE) emerged as an innovative paradigm to encompass all the complex and intertwined notions relevant to the transition of current smart grids towards more decarbonization, digitalization and decentralization. With a focus on the two last aspects, the amount of intelligent devices being connected in a scattered way to the existing power grid is ever-growing. Nevertheless, guaranteeing a cyber-secure and resilient control of these IoE components as well as a seamless and reliable delivery of electricity services, such as renewable energy exchange, electric vehicles charging, demand response, and so forth; might be the bottleneck of current power systems that are largely still functioning following a centralized approach. Thus, the future power grid would gradually incorporate a growing number of distributed-based control schemes to deal with this challenge. And many believe that blockchain could be a key-enabler in this transition, due to its consistent characteristics with multiple requirements of future power systems. In this paper, we provide an extensive state-of-the-art of blockchain-based additions to the IoE. Where, we first introduce various concepts related to blockchain and discuss the rationale behind its adoption in the context of IoE. Then, differently from the existing body of literature surveys, we do not only provide a taxonomy and evaluate a wide range of recent research outputs that integrated blockchain within modern power systems. But we also draw some valuable lessons learned for each studied category and discuss the intersection of blockchain with various emerging paradigms that have the potential of radically impacting the smart grid. In addition, we present some real-world industrial initiatives and ongoing projects built on top of blockchain, dedicated for offering diverse electricity services with a case study of a pilot project on energy trading in Amsterdam. Finally, we discuss the remaining challenges and worthwhile opportunities of deploying blockchain in this particular area, with a focus on the aspect of operational cyber-security.
The Internet of Things (IoT) may be demarcated as any kind of network that is embedded with sensors, interlinked with software, and other technologies for communication or connectivity of devices over the Internet. IoT is a massive lively global network infrastructure and plays a chief role in smart grid growth and enhances intelligent grid information and communication. Smart grid (SG) is usually a data communication network that is consolidated with a power grid to collect data and information from the substation, consumers, and transmission lines. With IoT, it is like an upgraded version of the network. In this chapter, an attempt has been made to study various applications, communication infrastructures, protocols, and security services of IoT in SG. The importance of securities in the SG for secure communications and prevention of all possible failures or threats is to be discussed thoroughly. Moreover, an attempt has been made to give an idea of cyber security for the SG and its privacy is also to be addressed in this chapter.KeywordsInternet of ThingsSmart gridSmart grid securityCommunication infrastructureCyber security
The blockchain technology is recently gaining a huge popularity due to a wide variety of use cases, where it can be adopted, and the benefits it provides. As already said, the widespread of renewable and distributed generation requires a rethinking of the management of the energy flows in the power system. The blockchain technology in the energy field is now a realistic perspective, particularly for microgrids, in which energy production is intrinsically distributed. The decentralized structure of a blockchain can be perfectly adapted to the control of production/consumption/storage within microgrids. It is thus understood that this technology can guarantee the traceability and security of energy transactions. As introduced in the first chapter, in recent times in this sector the blockchain applications are mainly oriented at P2P electricity trading, electric vehicles or DR. In this chapter, the features of blockchain technology that are useful for the energy system are addressed in more detail looking at the main applications in the energy field and the suitability of the blockchain for these applications.
Conference Paper
Full-text available
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.
Full-text available
This article suggests that the worldwide relevance of blockchain technology is motivated by the changes that it is expected to cause in: (i) the way that business is organised and (ii) regulated, as well as (iii) by the way that it changes the role of individuals within a society. The article presents an overview of the features of blockchain technology. It then takes a closer look into the developments within the energy sector across the world to gain a preliminary indication of whether the stated expectations are coming to reality. As a result of this review, we remain cautiously optimistic that blockchain technology could deliver the expected impact.
Full-text available
In this paper, we investigate the use of decentralized blockchain mechanisms for delivering transparent, secure, reliable, and timely energy flexibility, under the form of adaptation of energy demand profiles of Distributed Energy Prosumers, to all the stakeholders involved in the flexibility markets (Distribution System Operators primarily, retailers, aggregators, etc.). In our approach, a blockchain based distributed ledger stores in a tamper proof manner the energy prosumption information collected from Internet of Things smart metering devices, while self-enforcing smart contracts programmatically define the expected energy flexibility at the level of each prosumer, the associated rewards or penalties, and the rules for balancing the energy demand with the energy production at grid level. Consensus based validation will be used for demand response programs validation and to activate the appropriate financial settlement for the flexibility providers. The approach was validated using a prototype implemented in an Ethereum platform using energy consumption and production traces of several buildings from literature data sets. The results show that our blockchain based distributed demand side management can be used for matching energy demand and production at smart grid level, the demand response signal being followed with high accuracy, while the amount of energy flexibility needed for convergence is reduced.
Full-text available
In Industrial Internet of Things (IIoT), Peer-to-Peer (P2P) energy trading ubiquitously takes place in various scenarios, e.g., microgrids, energy harvesting networks, and vehicle-to-grid networks. However, there are common security and privacy challenges caused by untrusted and nontransparent energy markets in these scenarios. To address the security challenges, we exploit the consortium blockchain technology to propose a secure energy trading system named energy blockchain. This energy blockchain can be widely used in general scenarios of P2P energy trading getting rid of a trusted intermediary. Besides, to reduce the transaction limitation resulted from transaction confirmation delays on the energy blockchain, we propose a credit-based payment scheme to support fast and frequent energy trading. An optimal pricing strategy using Stackelberg game for credit-based loans is also proposed. Security analysis and numerical results based on a real dataset illustrate that the proposed energy blockchain and credit-based payment scheme are secure and efficient in IIoT.
Full-text available
Purpose The real estate world finds itself at a tipping point of a transition: a dramatic and irreversible shift in (real estate) systems in society. This article is a State of the art of Disruption, Blockchain and Real Estate in the Netherlands and international. Design/methodology/approach The following questions were asked of all those involved: (1) What do you think is the essence of Blockchain for real estate?, (2) What is the most current situation with respect to Blockchain and real estate from your perspective?, (3) Which publications are important from your perspective?, (4) What do you expect with respect to the impact of Blockchain on real estate for (social) real estate? And (5) What are questions for the future for real estate and Blockchain? In addition, interviews, exploratory conversations and correspondence took place, and the content is peer reviewed. Findings Changes in value concepts affect the valuation of real estate and the thinking about it. The orientation of changing users and owners of real estate affects innovativeness, values and flexibility in managing that property. Orientation on disruption must be seen as proof that the real estate world is able to actually innovate the accumulated assets and consolidate this. The financial and real estate markets are markets that exaggerate through irrational behaviour. Fear of 'eat or be eaten' determines people's behaviour. Financial and thus real estate markets are always unstable and must always be regulated by people and organizations. Research limitations/implications The question that remains is whether it is important to look at disruptive innovations in existing markets or newcomers in the real estate market and Blockchain. The question is whether Blockchain is only a technological disruption, or a real game changer, and whether the entire value chain of the real estate market will embrace it. No two disruptions are the same. Trust in Blockchain is a prerequisite for guiding the predictable form of that disruption where start-up companies use new technology to offer cheaper and inferior alternatives to real estate in the market. You could also talk about anti-fragile value: 'Some things benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors and love adventure, risk, and uncertainty. Yet, in spite of the ubiquity of the phenomenon, there is no word for the exact opposite of fragile. Let us call it antifragile.’ (Taleb 2012), in other words: attention to disruption and Blockchain creates a viable real estate economy. Practical implications The true meaning of the Blockchain technology for real estate still needs to be investigated. I am still curious to understand and clarify the value of Blockchain for real estate processes. Doubt continues to exist and is therefore a feeding ground for further research, because we do not know what we have not seen. Originality/value The way in which disruption, Blockchain and real estate will develop in the coming years are not the only obvious characteristics of a particular era, but also its social impact and user behaviour. This also applies to how this real estate transition can best be tracked, guided and utilized in society at the international, national and regional level. Disruptive organizations clearly respond to the viability of the (built) environment and therefore determine competitive strength. This affects the current and future valuation of real estate.
Full-text available
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.
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
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.