TY - JOUR
T1 - Smart contracts in energy systems
T2 - A systematic review of fundamental approaches and implementations
AU - Kirli, Desen
AU - Couraud, Benoit
AU - Robu, Valentin
AU - Salgado-Bravo, Marcelo
AU - Norbu, Sonam
AU - Andoni, Merlinda
AU - Antonopoulos, Ioannis
AU - Negrete-Pincetic, Matias
AU - Flynn, David
AU - Kiprakis, Aristides
PY - 2022
Y1 - 2022
N2 - Given the ongoing transition towards a more decentralised and adaptive energy system, the potential of blockchain-enabled smart contracts for the energy sector is being increasingly recognised. Due to their self-executing, customisable and tamper-proof nature, they are seen as a key technology for enabling the transition to a more efficient, transparent and transactive energy market. The applications of smart contracts include coordination of smart electric vehicle charging, automated demand-side response, peer-to-peer energy trading and allocation of the control duties amongst the network operators. Nevertheless, their use in the energy sector is still in its early stages as there are many open challenges related to security, privacy, scalability and billing. In this paper, we systematically review 178 peer-reviewed publications and 13 innovation projects, providing a thorough analysis of the strengths and weaknesses of smart contracts used in the energy sector. This work offers a broad perspective on the opportunities and challenges that stakeholders using this technology face, in both current and emergent markets, such as peer-to-peer energy trading platforms. To provide a roadmap for researchers and practitioners interested in the technology, we propose a systematic model of the smart contracting process, by developing a novel 6-layer architecture, as well as presenting a sample energy contract in pseudocode form and as open-source code. Our analysis focuses on the two mainstream application areas we identify for smart contract use in this area: energy and flexibility trading, and distributed control. The paper concludes with a comprehensive, critical discussion of the advantages and challenges that must be addressed in the area of smart contracts and blockchains in energy, and a set of recommendations that researchers and developers should consider when applying smart contracts to energy system settings.
AB - Given the ongoing transition towards a more decentralised and adaptive energy system, the potential of blockchain-enabled smart contracts for the energy sector is being increasingly recognised. Due to their self-executing, customisable and tamper-proof nature, they are seen as a key technology for enabling the transition to a more efficient, transparent and transactive energy market. The applications of smart contracts include coordination of smart electric vehicle charging, automated demand-side response, peer-to-peer energy trading and allocation of the control duties amongst the network operators. Nevertheless, their use in the energy sector is still in its early stages as there are many open challenges related to security, privacy, scalability and billing. In this paper, we systematically review 178 peer-reviewed publications and 13 innovation projects, providing a thorough analysis of the strengths and weaknesses of smart contracts used in the energy sector. This work offers a broad perspective on the opportunities and challenges that stakeholders using this technology face, in both current and emergent markets, such as peer-to-peer energy trading platforms. To provide a roadmap for researchers and practitioners interested in the technology, we propose a systematic model of the smart contracting process, by developing a novel 6-layer architecture, as well as presenting a sample energy contract in pseudocode form and as open-source code. Our analysis focuses on the two mainstream application areas we identify for smart contract use in this area: energy and flexibility trading, and distributed control. The paper concludes with a comprehensive, critical discussion of the advantages and challenges that must be addressed in the area of smart contracts and blockchains in energy, and a set of recommendations that researchers and developers should consider when applying smart contracts to energy system settings.
KW - Blockchain
KW - Data privacy
KW - Decentralised energy systems
KW - Distributed ledger
KW - Energy management
KW - Energy markets
KW - Energy smart contracts
KW - Energy trading
KW - Local energy markets
KW - Local energy systems
KW - Peer-to-peer trading
KW - Power systems
KW - Smart charging
KW - Smart contracts
KW - Smart energy contracts
KW - Smart grids
KW - Transactive energy
UR - http://www.scopus.com/inward/record.url?scp=85123105429&partnerID=8YFLogxK
U2 - 10.1016/j.rser.2021.112013
DO - 10.1016/j.rser.2021.112013
M3 - Review article
AN - SCOPUS:85123105429
SN - 1364-0321
VL - 158
JO - Renewable and Sustainable Energy Reviews
JF - Renewable and Sustainable Energy Reviews
M1 - 112013
ER -