Blockchain for Energy Systems: Bridging Top-down and Bottom-up Management of the Electricity Grid

Point-of-view article.
Abstract: For more than a century, the grid has operated in a centralized top-down fashion. However, as the penetration

of the distributed energy resources (DERs) grows, the grid edge is increasingly infused with intelligent

computing and communication capabilities. Thus, the bottom-up approach to grid operations inclined

toward decentralization of energy systems will likely gain momentum alongside the existing centralized

paradigm. In this point of view article, we aim to highlight the need for and outline a credible path toward

restructuring the current operational architecture of the electricity grid in view of the ongoing decentralization

trends with an emphasis on peer-to-peer energy trading. We further suggest that blockchain is an

effective technology for facilitating the synergistic operations of top-down and bottom-up approaches to

grid management.