Page 33 - Energize January 2021

TECHNICAL

The application of blockchain

technology in power systems

by David Bowker, convenor of CIGRE WG C5.30

Due to the centralised structure of energy systems with large-scale industrial and commercial
loads and because of the environmental concerns, power generation centres have been
located far from the load centres.

igh-voltage (HV) transmission lines and power distribution networks are used to What is blockchain?
transfer the generated power to the load centres. Traditionally, energy systems Centralised energy systems record the value
with a centralised structure have been capable of delivering power with higher of the transactions in central records.
Hefficiency with the use of fossil fuels. Blockchain, by contrast, is a distributed and
immutable ledger of transactions without the
Energy markets overview need for central governance and trusted
There are three technological trends which are driving the transformation of the energy sector: third parties. In other words, instead of
• The energy sector is becoming more electrified due to a shift away from the direct storing the data on some data servers, a
energy consumption of non-renewable energy sources for commercial sections. copy of Blockchain can be stored locally by
• The increasing deployment of RESs and DGs facilitates the decentralization of the energy each participant (the peers) of the distributed
sector and increases the volatility of the operation of the power system in real time. network. There is a continuous growth in the
• The increased development of digital technologies makes large parts of the energy chain of data records when new blocks are
value chain digitalised. validated and attached to the chain.
The peers of the distributed network can
The grid has remained fundamentally the same for more than 130 years. The result is a verify the validity of each block in the chain
centralised, rigid system that cannot effectively manage the variability of distributed energy using a cryptographic hashing algorithm.
resources and modern energy use and where maintaining balance becomes increasingly Blockchain offers substantial changes in
difficult as more complexity is added to the system. current energy systems by supporting
Managing this grid is like trying to centrally control the internet. Digital and decentralisation and a highly secure
technological transformation enhances the real-time communication infrastructure between information flow. Once a transaction is added
different nodes across the energy value chain. This allows new emerging technologies, to a Blockchain, it is impossible to alter it
such as blockchain, to facilitate the rapid changes in the energy sector. For example, with today’s computing power. Therefore, the
blockchain supports bidirectional information flow between different nodes in energy ledger cannot be modified or tampered with
systems while streamlining transactions. by peers of the distributed network.

Number of projects

Trading and Marketing
Automated control of decentralised power systems
Transparency to improve auditing
Billing
Smart grid applications and data transfer
Security and identity management
Grid management
Charging solutions for shared resources
Sales and marketing
Increased competition through faster switching of energy

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