Distributed Ledger Technology-enabled Distribution System Operation (Phase 1)

Completed

Other Power and Storage Technologies(Electricity transmission and distribution)
Other Cross-Cutting Technologies or Research(Energy Economics)

Applied Research and Development

SOCIAL SCIENCES (Business and Management Studies)
PHYSICAL SCIENCES AND MATHEMATICS (Computer Science and Informatics)
ENGINEERING AND TECHNOLOGY (Electrical and Electronic Engineering)

Not Cross-cutting

Project Contact
SP Energy Networks

Network Innovation Allowance

Ofgem

01 March 2018

01 March 2020

ENA months

£400,000

Power

Scotland

Network Innovation Allowance

Project Contact, SP Energy Networks

Project Contact, Scottish and Southern Energy plc
Project Contact, UK Power Networks

The proposed project will build upon the success of the pilot research activities funded by EPSRC HubNet (Blockchain based smart contracts for peer to peer energy trading using the GB smart metering system) and ENCORE (Feasibility of applying Blockchain and smart contracts technology to distribution grid management in the GB power system) from Cardiff University.The project aims to create, test and quantify the performance of example agreement mechanisms encoded as DLT based smart contracts for distribution system operation. The project will define rules for interactions between neighbouring system operators (DNO or DSO). Then it will co-ordinate the actions of DERs on a distribution network within the same ownership. Alongside this, a use-case using actual network data, will be developed to allow a DNO/DSO to best employ the defined smart contracts. Finally, the whole system will be implemented and demonstrated in software simulation environment, engaging with stakeholders in the supporting networks to raise the common level of understanding. The project begins with a detailed review of existing distributed ledger technology (such as blockchain) and smart contracts, with particular focus on the energy sector; and a study of their design, deployment and interfaces.It then proceeds to demonstration software and hardware implementation, in a simulation environment, enabling DNO engineering and commercial staff to gain experience and understanding of DLT applications. This stage will also clarify and demonstrate the IT requirements for each kind of DLT network node, and the security implications of DLT architecture. The over-arching objective is to investigate the viability of using DLT based smart contracts for distribution network operation, including the potential transition to a system operator role. To do this, the project aims to encode rules for agreement in to DLT based smart contracts. In doing this, the objective is to create knowledge and transfer know-how to the participating networks, and the wider industry, in the arrangement and safe deployment of, and interaction with, DLT based smart contracts. The project also aims to inform network licensees of the commercial and technical potential for DLT enabled smart contracts to be integrated into business as usual practices; and to provide a basis for evaluating commercial offerings. Finally, the project will also inform industry steering groups and governing bodies as to the potential for, as well as any practical limitations of, such technologies to lower the system-wide cost of operation through governance changes.

This project will investigate the use of Distributed Ledger Technology for smart contracts in Distribution Network Operation.

14/12/22