Technological, legal and economic perspective of the blockchain application in microgrids

Abstract

Since last year, John Cockerill has undertaken the analysis of the interest that blockchain could hold for the group beyond the hype surrounding the technology. From the acquired knowledge and identified use cases, a focus on the use of blockchain to support microgrids’ information systems is envisioned. This work revolves around three main axes: identifying and assessing economic models for microgrids considering blockchain technology, conducting an in-depth legal analysis of smart contracts anchored in the Belgian context, and developing a proof-of-concept that puts into action some of the precited aspects. The first two aspects of the thesis are approached thanks to a literature review. Firstly, establishing a legal contract between the microgrid members to rule energy trading has not been considered among the models suggested by various authors, as well as in existing blockchain-based microgrid projects. We therefore introduce a simple priority-based model to start the reflection on the matter. Secondly, legal considerations are discussed to evaluate whether a smart contract could be considered as a validly formed contract; its probative value is also assessed. A proof-of-concept has been successfully developed. This sets up an Hyperledger Fabric blockchain network, whose peers are materialized by Raspberry Pi devices, on which a smart contract is deployed. The latter enables energy exchanges between the members of the microgrid according to the business logic proposed by the model we have defined.