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Blockchain technology for distributed generation: A review of current development, challenges and future prospect

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  • Yap, Kah Yung
  • Chin, Hon Huin
  • Klemeš, Jiří Jaromír

Abstract

The non-transparency of a centralised power system creates security issues in energy trading, and the inability of prosumers to participate in energy trading arose. Blockchain can be applied in distributed generation (DG) with its immutability, security, decentralised, transparency, anonymity, transactional data, and automation features to resolve the mentioned concerns. The applications of DG, such as renewable energy sources (RES), battery electric vehicles (BEVs), solar energy, microgrid and other new electrical components, require the need decentralised energy management with secured data ledger transactional record and peer-to-peer (P2P) energy trading. The research gaps and limitations are stated to point out the potential future prospect and recommendations. Overall, the blockchain is beneficial to be implemented in DG in terms of security enhancement, P2P energy trading, immutable transactional records and transparent transactions. As compared to the centralised system, the decentralised blockchain enables the scalability, privacy, autonomous trading, anonymity, legitimate auditing and low latency of DG operations. This study serves as a guide to accelerating the adoption of blockchain technology in the emerging DG. The research outcome of this review is a wider perspective of blockchain applicability and versatility in the DG sector in terms of decentralisation of grid operation, P2P energy trading and energy optimisation. The review also highlights the limitations and clarifies technical issues concerning the implementations of blockchain in the DG sector, the current applications and development trends and possible future recommendations for the blockchain in advancing the DG sector.

Suggested Citation

  • Yap, Kah Yung & Chin, Hon Huin & Klemeš, Jiří Jaromír, 2023. "Blockchain technology for distributed generation: A review of current development, challenges and future prospect," Renewable and Sustainable Energy Reviews, Elsevier, vol. 175(C).
    • Handle: RePEc:eee:rensus:v:175:y:2023:i:c:s1364032123000266
    DOI: 10.1016/j.rser.2023.113170
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    1. Matteo Vaccargiu & Andrea Pinna & Roberto Tonelli & Luisanna Cocco, 2023. "Blockchain in the Energy Sector for SDG Achievement," Sustainability, MDPI, vol. 15(20), pages 1-23, October.

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