Block-chain for Smart Grid

1. Sustainability Problem: On an electricity grid, electrons generated from the sun, wind, or other renewable sources are indistinguishable from those generated by fossil fuels. To keep track of how much clean energy is produced, governments around the world have created systems based on tradable certificates.

Category: Energy

2. Solution:

  • When a renewable-power plant generates a unit of electricity today, a meter spits out data that gets logged in a spreadsheet. The spreadsheet is then sent to a registry provider, where the data gets entered into a new system and a certificate is created. A second set of intermediaries brokers deals between buyers and sellers of these certificates, and yet another party verifies the certificates after they are purchased.
  • Such a byzantine system racks up transaction costs, while leaving plenty of room for accounting errors that can range from honest mistakes to outright fraud. The lack of transparency also scares many people off entirely.
  • A blockchain is a shared, encrypted ledger that is maintained by a network of computers. These computers verify transactions—in the case of Bitcoin, the transfer of cryptocurrency between individual users. Each user can access the ledger, and there is no single authority.
  • Keeping track of renewable-energy certificates is one of dozens of potential applications of blockchain technology that could solve data management challenges in the electricity sector without disrupting business as usual

3. Organizational Stakeholders involved: Independent Power Producers, Utilities, Technology Companies

4. Next Steps for Deployment: 

  • Develop blockchain algorithms that can be trusted by all users
  • Train utilities and power companies in use of blockchain applications
  • Create meeting protocols for all stakeholders to confer in case of any emergencies
  • Implement on a pilot basis and test effectiveness

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One thought on “Block-chain for Smart Grid

  1. With a grid, it seems that having a central authority that can audit grid power flows and contributions or bad behavior on the grid (poor inverters, etc.) would be much better. All this talk of blockchain and energy seems like bad bad bad hype. At least, nobody seems to be explaining what the benefits could be, other than “it’s blockchain. To learn more about automated crypto alerts, visit


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