Page 53 - U4SSC Blockchain for smart sustainable cities

Figure 9: Smart cities dimension energy system in South Holland

Official exemption from the Dutch electricity This would result in self-organizing and self-
law of 1998 has been granted to facilitate balancing grids, or microgrids, such as those
experimenting towards a “smart multicommodity proposed by organizations like Energy Bazaar.
grid”. In 2019, the consortium was granted This case demonstrates the use of smart
the status of “large experiment” by the Dutch technologies to contribute to the areas of smart
Enterprise Agency, which means that the project economy, smart environment and smart living.
can scale-up to 10 000 households. The intervention makes use of data sensing to
understand the behaviour and monitor demand,
In the future, new energy cooperation is planned
that will start using the local grid in 2023, scaling data analytics to predict behaviour and demand,
up to 300 households. It will make use of the and blockchain to manage load balancing.
real-time simulations of the energy network, The transformation that is facilitated includes
and automated transactions facilitated by the changes to the roles of stakeholders, with
blockchain-based smart contracts. Fluctuating households and communities playing a more
energy prices will be reflected in a flexible tariff active role in the energy grid, as opposed to being
and payment system. There is also the intention mere consumers in the existing centralized grids.
to use electric vehicles as batteries to help The case also illustrates the need for changes
balance the system with bi-directional charging in the governance of energy grids to allow for
and discharging. Based on the current plan, the the new approach. The choice of blockchain
grid will be scaled-up to 3 000 households. The technology was based on the:
researchers hope that this case will demonstrate a. absence of trust between entities and the
how existing centralized electricity grids can users of the system;
be turned into transactive grids, allowing for
a greater and more flexible use of renewable b. need to remove the intermediaries, the
resources. 78 necessity to work digital assets;
c. need to maintain a permanent record and
While this research is specifically concerned with
improvements to existing energy grids, the same the implementation of a contractual relation-
concepts can also be applied where no central ship; and
grid or electricity company is currently present. d. need to share the writing access.

U4SSC: Blockchain for smart sustainable cities 43