Blockchain for decentralized transactive energy management system in networked microgrids

The proliferation of distributed energy resources is reshaping the landscape of power distribution systems, including a network of autonomous microgrids. Networked microgrids transact energy for managing the efficiency, reliability, resilience, security, and sustainability of electric power services. This article offers a vision and analyzes a scheme developed for networked microgrids that utilizes blockchain technologies to optimize the financial and physical operations of power distribution systems. Blockchain provides a powerful and trustworthy path for launching distributed data storage and management, the article explores the possibility of customizing blockchain technologies to meet socioeconomic requirements of transactive energy management at the power distribution level. Then, a set of interoperable blockchains embedded with self-enforcing smart contracts is proposed to manage energy and financial flows among transacting microgrids in a credible manner. The article presents additional smart contract measures for securing optimal energy transactions between networked microgrids and the local distribution grid. It is concluded that blockchain technologies embedded in transactive energy will play a significant role in the evolution of traditional power distribution systems to active distribution networks. © 2019 Elsevier Inc.