An approach for applying blockchain technology in centralized electricity markets

Abstract

The electricity sector has recently begun to undergo a series of changes to improve the generation, transmission, and energy distribution. New technologies have been testing focused on reducing fossil fuels and implementing new tools to create a more efficient energy sector. Blockchain has emerged as one of the most promising tools due to its wide range of utilities, primarily supporting renewable energy, electric mobility, purchase, and energy sale. This technology has been revolutionary, contributing to the significant renewal of the electricity market model. In electricity markets that are not very mature, you can find some centralized activities and competition—creating a commercial monopoly in centralized activities in favor of a specific group. This article aims to analyze the shortcomings of previous research on blockchain in the electricity sector and, through a case study, propose an approach for applying blockchain in centralized electricity markets. Blockchain technology has valuable points, including the excellent security in the transactions carried out in the purchase and sale of energy through a peer-to-peer network stimulating the creation of a decentralized energy trading system.