A Blockchain-Enabled Secure Power Trading Mechanism for Smart Grid Employing Wireless Networks

Abstract

The rapid growth of renewable energy has increased the requirements of the smart grid for communication and processing capabilities. As an effective solution to collect and manage information, the wireless network can improve the efficiency of renewable energy management. But due to the wireless data transmission risk and centralized power trading, the smart grid employing wireless networks cannot guarantee the security of the electricity market and the high consumption of renewable energy. Recently, as an emerging data-sharing technology, the blockchain has attracted widespread attention and is considered to have the potential to solve above problems. In this paper, we propose a blockchain-enabled secure power trading mechanism for the smart grid employing wireless networks. The blockchain is introduced to record power data collected by the wireless network, and the smart contract can make reasonable trading decisions based on this. The dual-chain structure composed of local energy trading blockchain and renewable energy trading blockchain improves the efficiency of power trading and renewable energy consumption. To strengthen the stability of renewable energy producers and expand their scale, we also design a blockchainenabled renewable energy incentive mechanism. Finally, the modified Southern California Edison 56 bus test feeder model validated our mechanism.

A Comprehensive Review on Smart Grids: Challenges and Opportunities

“…Neighborhood Area Networks (NAN) [22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37] Software Defined Networks (SDN) [20,[38][39][40][41][42][43] Interdependent networks (IN) [44][45][46][47][48][50][51][52][53] Field Area Networks (FAN) [21,49,[54][55][56][57][58][59][60][61][62][63]69] Wireless Sensor Networks (WSN) [64][65][66][67][68][69]...…”

“…Note that 17% can find both in NANs and WSNs, respectively, pointing out a great opportunity to develop smart grids with softwaredefined topologies. Internet of Things [19,23,24,27,28,30,31,36,37,58,64,66,73,74,79,105,107] Machine learning [20,29,32,51,55,56,60,62,69,78,80,81,85,98,102,106] Data mining [47,107] Machine learning and neural training [21,54,69,81,96] Short term memory network [41,61] Power Line Communication Technology [53,63,90] Power electronics [35,50,99,101,<...>…”

“…The work carried out by Liu et al [61] establishes the need to observe the rapid growth of energy that does not depend on fossil fuels and lays the foundations for SGs to be equipped with the most important processing and, above all, communication capabilities. Thus, it is necessary to make a more efficient wireless network for a better management of energies considered clean or renewable.…”

A Survey on Energy Trading in the Smart Grid: Taxonomy, Research Challenges and Solutions

“…Similarly, Chen et al [170] discussed the security, privacy, and anonymity in exchanges of energy flows and financial activity in the smart grid using blockchain implementation. Liu et al [171] proposed a blockchain-based renewable energy incentive-based power trading mechanism in the smart grid. This framework provides security to the participants and improves the efficiency of power trading and renewable energy consumption.…”

A Data-Driven Approach for Blockchain-Based Smart Grid System

“…• Data-driven. Most existing approaches [11], [12] rely on fixed or known power demand, ignoring the fact that households' power consumption varies with both time and space. Different from these studies, DS 2 proposes to capture the spatio-temporal correlations of power demand and leverage the results to facilitate trading.…”