Blockchain for Energy Systems: Bridging Top-down and Bottom-up
Management of the Electricity Grid
Abstract
Point-of-view article.
Abstract: For more than a century, the grid has operated in a
centralized top-down fashion. However, as the penetration
of the distributed energy resources (DERs) grows, the grid edge is
increasingly infused with intelligent
computing and communication capabilities. Thus, the bottom-up approach
to grid operations inclined
toward decentralization of energy systems will likely gain momentum
alongside the existing centralized
paradigm. In this point of view article, we aim to highlight the need
for and outline a credible path toward
restructuring the current operational architecture of the electricity
grid in view of the ongoing decentralization
trends with an emphasis on peer-to-peer energy trading. We further
suggest that blockchain is an
effective technology for facilitating the synergistic operations of
top-down and bottom-up approaches to
grid management.