Hassan H. Eldeeb
Graduate Research Assistant & Ph.D. Candidate
Florida International University
16:30 - 17:00
Thursday, 19 September 2019
T2.10 Blockchains - A Key Enabler in the Energy Market
Electrical power systems have been conventionally designed, built, and operated based on the centralized model. In the centralized model, large centralized power plants generate the energy to meet the consumers’ needs and highly interconnected transmission and distribution networks are used to transport that energy to final consumers. The centralized model is very expensive to build, complex to operate, has a big environmental impact, and is vulnerable to attacks. With the recent technological advancements in distributed energy resources (DERs) combined with advancement in telecommunication infrastructure, the electrical power system is rapidly shifting to a decentralized system with consumers turning into “prosumers”, i.e., consumers who can generate their own energy needs and can transmit excessive energy to other consumers. This has introduced several challenges to the classic business model of utilities that have been designed around centralization (big central power plants sending power to end users via transmission and distribution networks). Blockchain technology as a core of decentralization has started to attract the attention of the energy industry as an enabler for accelerating the trend of decentralization.
This paper investigates novel approaches for applying blockchains in the energy sector presenting the opportunities and challenges of applying Blockchains to the energy sectors. Blockchain has the potential to eliminate the hurdle of lack of peer-to-peer trading structures and unleash the full potentials of decentralized models. The concepts of Internet of Things (IoT) and Multi Agent Systems (MAS), managing and utilizing distributed control schemes for DERs systems is achievable by applying computational paradigm with various configurations in order to control the power flow and provide electrical power to various nodes on a power grid on a peer-to-peer basis, which is the main core behind the Blockchain.
This paper introduces the main principle of blockchain technology, discusses the blockchain technology and energy systems as an enabler or disrupter. The challeges for widespreading its integration is discussed. In the energy system, Blockchain applications is of great importance and use, as it could potentially enable peer-to-peer energy trading without third party involvement, support the wide-spread use of DERs, improve system efficiency, reduce labor cost, and reduce capital costs.