When Blockchain Meets Smart Grid: Secure Energy Trading in Demand Response Management

Increasing demand for electricity necessitates the use of efficient mechanisms for demand response management (DRM) in the existing smart grid (SG) system. In the Industry 4.0 era, the usage of information and communication technologies in the energy industry revolutionized the existing grid called SG, which provides a bi-directional flow of energy and data. To handle the energy demand of the consumers, DRM is crucial. It provides the active participation of consumers in the energy trading system (ETS) between consumers and service providers. The traditional energy trading system (TETS) relies on the centralized system or trusted third parties, which may act as a single point of failure. So, it is essential to equip the SG system with a secure energy trading system (SETS) to provide privacy and security to the consumer's data. In this direction, one of the emerging technology, called blockchain, can handle the issue as mentioned above, which is a chain of decentralized and distributed transaction ledger that is retained and maintained by each user. It performs peerto- peer (P2P) energy transactions among different consumers, such as individual houses, using smart contracts, and without a central control body. In a decentralized system, each consumer has its energy storage locally generated using renewable energy resources (RES). In this article, SETS, a blockchain-based decentralized ETS framework, is proposed for storing and processing the data generated from smart meters (SMs). In SETS, miner node is designated to validate the requests of energy requirements, dynamic pricing, and time of stay. Then, an energy transaction execution approach is designed for SETS. The evaluation results obtained show that SETS outperforms the TETS in terms of computation time and communication costs.