Blockchain-Integrated Cyber-Physical Smart Meter Design and Implementation for Secured Energy Trading in Virtual Power Plants

Abstract

A novel architecture for smart meters in a Virtual Power Plant (VPP) is introduced in this research. By integrating blockchain technology, the system not only measures and quantifies diverse consumer data but also facilitates immediate control, hence improving demand responsiveness in a VPP environment. Mathematical models were created to optimize profit, battery reserve, and power balance. A novel transaction and security algorithm that enables peer-to-peer (P2P) transactions in a secure setting is used in conjunction with a power flow algorithm for real time monitoring and control to implement the proposed model. The lightweight characteristics of the algorithms enable faster and more effective computer processing. The unique identifier issued to each smart meter facilitates seamless integration with a blockchain smart contract, therefore enabling improved and secure P2P transactions. An innovative experimental setup demonstrated the framework’s ability to effectively manage energy flows while maintaining seamless wireless connection with the grid and executing transactions. The smart meter demonstrated exceptional efficiency in load management, resulting in an average loss of 1.9524W. A dedicated dapp was created just for this purpose. Through the strategic integration of algorithms and blockchain technology, this framework enhances the efficiency and reliability of the metering infrastructure, while also enabling secure transactions. Note to Practitioners—This paper introduces a blockchain-integrated smart metering system tailored for VPPs, addressing challenges like energy inefficiency, cybersecurity risks, and real-time energy management. The design leverages blockchain technology to enable secure, P2P energy trading and real-time energy monitoring, presenting a scalable solution for decentralized energy markets. Practitioners in the energy sector, especially those managing distributed energy resources, can use this framework to enhance grid stability and improve energy distribution efficiency. The smart meter’s plug-and-play design allows for seamless integration into existing infrastructures, making it adaptable for various regulatory environments. The incorporation of IoT ensures real-time load management and communication, while blockchain safeguards transactional data, reducing risks of data breaches and fostering trust among prosumers. However, implementing this system requires careful consideration of hardware compatibility, scalability for larger networks, and user training to ensure adoption. The system’s reliance on real-time data processing and its hybrid approach to blockchain integration could challenge practitioners unfamiliar with these technologies or those having limited network capability. Potential extensions include integrating advanced predictive algorithms for improved energy forecasting and adapting the system for multi-energy management (e.g., heating and cooling). Further research on long-term system performance and cost-benefit analysis could enhance its practical value for stakeholders in energy markets and smart grid ecosystems.