Application of Distributed Ledger Technology in Distribution Networks

Yue Zhou, Andrei Manea, Weiqi Hua, Jianzhong Wu*, Wei Zhou, James Yu, Saifur Rahman

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

In the transition to a society with net-zero carbon emissions, high penetration of distributed renewable power generation and large-scale electrification of transportation and heat are driving the conventional distribution network operators (DNOs) to evolve into distribution system operators (DSOs) that manage distribution networks in a more active and flexible way. As a radical decentralized data management technology, distributed ledger technology (DLT) has the potential to support a trustworthy digital infrastructure facilitating the DNO–DSO transition. Based on a comprehensive review of worldwide research and practice, as well as the engagement of relevant industrial experts, the application of DLT in distribution networks is identified and analyzed in this article. The DLT features and DSO needs are first summarized, and the mapping relationship between them is identified. Detailed DSO functions are identified and classified into five categories (i.e., “planning,” “operation,” “market,” “asset,” and “connection”) with the potential of applying DLT to various DSO functions assessed. Finally, the development of seven key DSO functions with high DLT potential is analyzed and discussed from the technical, legal, and social perspectives, including peer-to-peer energy trading, flexibility market facilitation, electric vehicle charging, network pricing, distributed generation register, data access, and investment planning.
Original languageEnglish
Pages (from-to)1963-1975
Number of pages13
JournalProceedings of the IEEE
Volume110
Issue number12
Early online date24 Jun 2022
DOIs
Publication statusPublished - Dec 2022

Bibliographical note

Acknowledgments:
This work was supported in part by the U.K. Network Innovation Allowance through the project “Distributed Leger Technology-Enabled Distribution Network Operation (DeDSO)” and in part by the Engineering and Physical Sciences Research Council (EPSRC)/National Natural Science Foundation of China (NSFC) under Grant EP/T021969/1/52061635103 “Multi-Energy Control of Cyber-Physical Urban Energy Systems (MC2).”

Keywords

  • Blockchain
  • distributed ledger technology (DLT)
  • distribution network
  • smart contract
  • smart grid

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