Blockchain-Based Security, Optimization and Energy Trading in Interconnected Microgrids

An innovative system is proposed that integrates blockchain-based Rivest-Shamir-Adleman (RSA) encryption and an optimization algorithm for energy management to enhance the authenticity, efficiency, and security of interconnected microgrids. This approach can improve power exchange among microgrids and potentially reduce electricity costs. Furthermore, energy trading between microgrids is facilitated through a Distributed Network Operator (DNO), which ensures balanced and efficient power distribution based on supply and demand. Blockchain technology secures the system by authenticating entities using encryption keys and distinct IDs, ensuring that only authorized users can access or modify the details, thereby maintaining a tamper-proof transaction record. An optimization-based strategy is applied in the microgrid's Energy Management System (EMS) to regulate power generation, consumption, and storage. Simulation results of the proposed architecture demonstrate significant cost reductions achieved through the optimization approach compared to traditional methods and highlight effective power distribution among microgrids.