In old energy control system, there was no freedom for users to sale or purchase energy with their own choice and rate because system was centralized and also there were many issues such as electricity theft cases and losses and burden of these losses directly inculdded in public bills. Now after the introduction of blockchain these issues has been resolved such as the blockchain technology give freedom to user to sale or purchase energy according to the own rate with secure transaction system. The conventional energy system with centralizedcontrol technique fails to resolve many issues such as freedom to user’s to sale or purchase energy in network in secure way and combination of blockchain and Microgrid has all feature to resolve all present isssues. In this paper, the blockchain technology features and application of blockchain with clean energy system will be investigate to provide cheap electricity to users by using Microgrid because Blockchain provide complete solutions for energy distribution and trading. In addition, somemajor present issues will be focus such as low efficiency, losses and ant algorithm model to distribute the energy in the network efficiently.