Blockchain technology in the future smart grids: A comprehensive review and frameworks

Abstract

Development of the smart grids (SGs) has led to many changes in the current power grid structure. Application of new devices, technologies, renewable energy resources, and electric vehicles (EVs) increases the need for decentralized energy management and the data transactions, i.e., the secure and economic transactions are realized through the decentralized networks. The blockchain technology can be used as a solution for these modifications, so a comparative literature review is presented to identify all possible applications of blockchain in SG. The renewable energy development and its interaction with the blockchain technology are investigated, so the blockchain technology is verified as a promising option to increase the renewable energy share. Then, the applications of blockchain technology in SG are categorized in different areas, including the smart contracts and demand response (DR), EVs, the Internet of Things (IoT), the decentralized energy management, the energy trading, the financial transactions, the cybersecurity, the testbeds, and the environmental issues. Therefore, all possible opportunities and challenges of blockchain’s applications in SG are identified. A comprehensive literature review is done to introduce the current improvements related to the blockchain technology’s applications in SG, while the future opportunities and current challenges of blockchain are discussed. This paper aims to present a structure of SG according to the blockchain application and discuss all benefits and drawbacks caused by blockchain in different areas of SG.