Research on Blockchain-Enabled Smart Grid for Anti-Theft Electricity Securing Peer-to-Peer Transactions in Modern Grids

Abstract

Electricity theft presents a significant financial burden to utility companies globally, amounting to trillions of dollars annually. This pressing issue underscores the need for transformative measures within the electrical grid. Accordingly, our study explores the integration of block chain technology into smart grids to combat electricity theft, improve grid efficiency, and facilitate renewable energy integration. Block chain’s core principles of decentralization, transparency, and immutability align seamlessly with the objectives of modernizing power systems and securing transactions within the electricity grid. However, as smart grids advance, they also become more vulnerable to attacks, particularly from smart meters, compared to traditional mechanical meters. Our research aims to introduce an advanced approach to identifying energy theft while prioritizing user privacy, a critical aspect often neglected in existing methodologies that mandate the disclosure of sensitive user data. To achieve this goal, we introduce three distributed algorithms: lower–upper decomposition (LUD), lower–upper decomposition with partial pivoting (LUDP), and optimized LUD composition (OLUD), tailored specifically for peer-to-peer (P2P) computing in smart grids. These algorithms are meticulously crafted to solve linear systems of equations and calculate users’ “honesty coefficients,” providing a robust mechanism for detecting fraudulent activities. Through extensive simulations, we showcase the efficiency and accuracy of our algorithms in identifying deceitful users while safeguarding data confidentiality. This innovative approach not only bolsters the security of smart grids against energy theft, but also addresses privacy and security concerns inherent in conventional energy-theft detection methods.