Application of Blockchain Technology in Energy Trading

Abstract

Proliferation of Renewable Energy Sources (RESs) and Electric Vehicles (EVs) is an important step towards sustainable transformation of energy sector ensuring access to affordable & clean energy and taking action to mitigate climate change. Studies report well designed Peer-to-Peer(P2P) energy trading models which benefit both energy consumers and prosumers are a new way of encouraging the use of these RESs and EVs. However, these local energy trading models can have trust, privacy and information security challenges which can hinder their adoption. Against this backdrop, blockchain technology has emerged as a promising technology which is capable of enabling P2P energy trading while addressing most of these issues. This paper presents the state of art of blockchain technology in the area of energy trading of the RESs and EV charging. Initially, this paper presents the current transformation of the electricity sector and how that relates to the sustainability and conservation of environment. Then it surveys the blockchain based energy trading models used in RE trading and EV charging by categorising them according to the type of blockchain (based on data privacy level requirement) and the consensus mechanism used. Finally, the challenges that needs to be addressed to facilitate widespread use of blockchain in energy trading are identified and hence some future research directions to pursue are proposed.