A Novel Bitcoin and Block Chain Based Energy Exchange in a New Microgrid Design

Abstract

We are proposing an approach employing microgrid through which community can efficiently fulfill each
other needs of energy. This model will allow micro-grid prosumers to produce, consume and trade energy
deprived of any barrier. At present, such a system is not accepted because it requires the “collaboration” of
central energy distributors. In our solution, we visualize the use of a blockchain system with the support of
smart contracts to provide decentralization. The energy is sent to the central energy storage from the
prosumer and is stored there until the consumer claims it. Using smart energy (electricity) meters the flow
of electricity can be tracked accurately in both ways, neighbors can purchase spare electricity using tokens
rather than paying money. As blockchain takes care of the accounting part, it records the terms of the
contracts, tracks how many energy credits have been sold, by whom and to whom. The micro-grid is
facilitated by its own smart contract and it can share a desired amount of energy to a connected energy
consumer. The customer is aware of how much consumption energy is available at any time in the central
storage. The smart contract of the micro-grid takes as input HECs (helios coin) or a bit coin and then releases
the energy that corresponds to the calculated amount of HECs or bit coin received by the sender in form of
the payment. The test is to monitor these exchanges and repay purchasers and dealers likewise. This project
is an effort to utilize blockchain methodology for the trade of sun-based power among members effectively,
without any need of third party vendors