Improved Resilience of Local Energy Markets using Blockchain Technology
and Self-Sovereign Identity
- Umit Cali ,
- Marthe Dynge ,
- Md Sadek Ferdous ,
- Ugur Halden
Abstract
The Digital Green Transition of the energy industry is accelerating as
decarbonization and digitalization of the power market and system are
gaining momentum. Unlocking the full and real potential of local energy
markets is among the opportunities to be demystified in the coming
years, with blockchain technology being a prominent enabler. Important
subcomponents such as functional and fair local energy pricing
mechanisms and management algorithms will be required for
next-generation digital local energy trading and management platforms.
Even though rapid digitalization of the energy sector offers
considerable advantages, it also increases the cyber-physical risk
levels of energy systems in general. The proposed framework of this
paper accommodates considerable undiscovered aspects of democratization
of the energy systems and future digital shared economy conventions.
Nevertheless, privacy concerns must be addressed in tandem with the
cyber-physical security of local energy markets and their ecosystem.
This work proposes a joint privacy and cyber-physical security framework
designed for local energy markets to improve cyber-physical resilience.
All related parts, such as blockchain technology and self-sovereign
identity, are used in an organized way to create a possible solution.