The following landscape analysis explores blockchain or distributed ledger technologies application to securing electricity infrastructure. The exploration of how distributed ledger technologies can be used to increase the trustworthiness and integrity of the grid’s edge is imperative to the economic, security and well-being of all modern societies that rely on electricity. Blockchain technology’s ability to secure, track and optimize complex data transactions provides an exciting value proposition to securing and optimizing the U.S. power grid. An energy delivery system (EDS) operating at the grid’s edge requires unprecedented levels of security and trustworthiness to verify integrity of data and manage complex transactive and distributed Energy Resources (DERs) exchanges. Moreover, grid-edge devices lack visibility, control and security to conduct real-time energy transactions with the required security, speed and scale.
The U.S. power grid is a complex system of systems that requires secure, reliable and trustworthy EDSs. Grid modernization has increased the speed and size of data sets exchanged on these systems (Gordes and Mylrea 2014). Exasperating the challenge is these systems are increasingly distributed creating new data fidelity and interoperability challenges for grid operators struggling to balance and incorporate DERs. Blockchain technology provides an atomically verifiable cryptographic signature to help increase the trustworthiness of EDSs at the grid’s edge. This feature is especially important at distribution level since EDSs and field devices have increasing operational and security requirements that are often diametrically opposed. For example, as data, speed and analytic requirements increase, security and functionality requirements increase. Further, as the grid’s edge incorporate DERs and transacts in real time, availability is prioritized over the integrity and confidentially of that data.
Blockchain presents the prospect of solving some of these complex challenges related to grid security and modernization. However, there are more questions about blockchain applicability than answers. There are number of theoretical blockchain applications to the energy sector, but few energy utilities have actually applied, implemented or even experimented with the underlying distributed ledger technology and consensus algorithms that enable blockchain to exchange data more efficiently and securely.