A blockchain-based Peer-to-Peer renewable electricity trading solution for islanded microgrids

Purpose and goal

The project has contributed to our understanding of how blockchain technology can be used for decentralized P2P trading of renewable energy in islanded microgrids (energy networks with local production and consumption). Specifically, the project has reviewed existing project and concluded that these are not suitable for developing countries. In aim to develop a more suitable solution, the project has identified several important challenges and issues that must be solved before blockchain´s technical potential can be realized.

Expected results and effects

We reviewed over 200 project in the area of blockchain and electricity. We were not been able to identify a single decentralized solution that is ready for deployment in a production environment. Instead, the review contributes to an increased understanding of existing technical and non-technical challenges. The results were presented at a blockchain event and formed the basis for two submitted research applications. Our work has identified major challenges and a need for additional research before any theoretical advantages of blockchain technology can be put into practice.

Planned approach and implementation

The three phases involved were: 1) diagnostics, 2) analysis and development, and 3) solution description and evaluation. In phase 1, we evaluated existing projects and explored how local conditions in developing countries would limit our solution. Phase 2 was based on potential solutions and identified challenges. A prototype was developed that demonstrates a solution to how market participants can ensure exclusivity in bilateral electricity contracts. Phase 3 presented, documented and evaluated the work. This laid the foundation for two applications and future articles.