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Integrating Blockchain in Smart Grids for Enhanced Demand Response: Challenges, Strategies, and Future Directions

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  • Paraskevas Koukaras

    (Information Technologies Institute, Centre for Research & Technology, 57001 Thessaloniki, Greece
    School of Science and Technology, International Hellenic University, 14th km Thessaloniki-Moudania, 57001 Thessaloniki, Greece)

  • Konstantinos D. Afentoulis

    (Department of Energy Systems, University of Thessaly, Gaiopolis Campus, Ring Road of Larissa-Trikala, 41500 Larissa, Greece)

  • Pashalis A. Gkaidatzis

    (Information Technologies Institute, Centre for Research & Technology, 57001 Thessaloniki, Greece)

  • Aristeidis Mystakidis

    (Information Technologies Institute, Centre for Research & Technology, 57001 Thessaloniki, Greece
    School of Science and Technology, International Hellenic University, 14th km Thessaloniki-Moudania, 57001 Thessaloniki, Greece)

  • Dimosthenis Ioannidis

    (Information Technologies Institute, Centre for Research & Technology, 57001 Thessaloniki, Greece)

  • Stylianos I. Vagropoulos

    (Department of Energy Systems, University of Thessaly, Gaiopolis Campus, Ring Road of Larissa-Trikala, 41500 Larissa, Greece)

  • Christos Tjortjis

    (School of Science and Technology, International Hellenic University, 14th km Thessaloniki-Moudania, 57001 Thessaloniki, Greece)

Abstract

This research, conducted throughout the years 2022 and 2023, examines the role of blockchain technology in optimizing Demand Response (DR) within Smart Grids (SGs). It critically assesses a range of blockchain architectures, evaluating their impact on enhancing DR’s efficiency, security, and consumer engagement. Concurrently, it addresses challenges like scalability, interoperability, and regulatory complexities inherent in merging blockchain with existing energy systems. By integrating theoretical and practical viewpoints, it reveals the potential of blockchain technology to revolutionize Demand Response (DR). Findings affirm that integrating blockchain technology into SGs effectively enhances the efficiency and security of DR, and empirical data illustrate substantial improvements in both cases. Furthermore, key challenges include scalability and interoperability, and also identifying opportunities to enhance consumer engagement and foster system transparency in the adoption of blockchain within DR and SGs. Finally, this work emphasizes the necessity for further investigation to address development hurdles and enhance the effectiveness of blockchain technology in sustainable energy management in SGs.

Suggested Citation

  • Paraskevas Koukaras & Konstantinos D. Afentoulis & Pashalis A. Gkaidatzis & Aristeidis Mystakidis & Dimosthenis Ioannidis & Stylianos I. Vagropoulos & Christos Tjortjis, 2024. "Integrating Blockchain in Smart Grids for Enhanced Demand Response: Challenges, Strategies, and Future Directions," Energies, MDPI, vol. 17(5), pages 1-32, February.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:5:p:1007-:d:1342799
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    References listed on IDEAS

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    1. Yang, Qing & Wang, Hao & Wang, Taotao & Zhang, Shengli & Wu, Xiaoxiao & Wang, Hui, 2021. "Blockchain-based decentralized energy management platform for residential distributed energy resources in a virtual power plant," Applied Energy, Elsevier, vol. 294(C).
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    3. Roth, Tamara & Utz, Manuel & Baumgarte, Felix & Rieger, Alexander & Sedlmeir, Johannes & Strüker, Jens, 2022. "Electricity powered by blockchain: A review with a European perspective," Applied Energy, Elsevier, vol. 325(C).
    4. Zhang, Chenghua & Wu, Jianzhong & Zhou, Yue & Cheng, Meng & Long, Chao, 2018. "Peer-to-Peer energy trading in a Microgrid," Applied Energy, Elsevier, vol. 220(C), pages 1-12.
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