This is a preprint only and has not been peer-reviewed or published anywhere so far. Abstract : Blockchain technology (BCT) is a game changer for many industries due to its distinct advantages like conducting peer-to-peer transactions in trustless environment, enhanced data security, greater transparency, and the inclusion of smart contracts. Its application in the energy industry in Blockchain Enabled Interconnected Smart Microgrids (BSMGs) is on the rise as it can automate local energy markets; execute energy trading; and implement market operations and management. However, they are limited by their scalability and low transactions rate. Also, with the increase in adoption of BSMGs, different types of BCT platforms will emerge, creating heterogeneity in the system. This shortcoming may lead to a monopoly of certain platforms over the rest. These drawbacks can be overcome by establishing interoperability between heterogeneous blockchains. Interoperability can also enable inter-microgrid transactions which will be hindered if there is no inter-chain communication and transaction. Cosmos is a network of blockchains which allows blockchains, applications and services to be interconnected through Inter Blockchain Communication (IBC) protocol. Ignite CLI is an open-source, command line interface which easily creates modular and customizable blockchains which are inherently connected to Cosmos through IBC. In this paper, Ignite CLI is used to create blockchains for BSMGs which exchange data and calls for inter-microgrid transactions via IBC. The procedure to establish inter-chain communication is defined. Interoperability between BSMGs is explored and demonstrated through different examples, for the first time in the energy domain.

This is a preprint. Blockchain technology (BCT) is emerging as a gamechanger for many industries due to its unique benefits like ability to conduct peer-to-peer (P2P) transactions in trustless environment with increased data security and transparency in real-time. It is employed in Blockchain Enabled Interconnected Smart Microgrids (BSMGs) to automate local energy markets, facilitate energy trading, and manage microgrid operations. However, with the increasing adoption of BSMGs, several challenges regarding interoperability between BSMGs may arise. Different BCT platforms may use their indigenous tokens or specially designed energy tokens for financial transactions. Also, cross-border international energy trades can become P2P which may involve real-time transactions using the countries’ digital currencies. Thus, in order to overcome the geographical and technological barriers impeding the widespread usage of BSMGs and access to energy for all, decentralized exchanges (DEX) must be incorporated. DEX are used in decentralized finance to exchange digital tokens and cryptocurrencies on blockchains. In this paper, an Order Book DEX is implemented on Cosmos which exchanges tokens between different chains using the Inter Blockchain Communication protocol (IBC). The working logic of the DEX is discussed and implemented using Ignite CLI. The financial exchanges and recording using buy and sell orders are demonstrated for the first time in energy domain.

Power systems are undergoing rapid transitions to incorporate renewable sources of generation and to combat climate change. Next stage of transitions will lead to a shift from large-scale, centralized systems to networks of smallsized, distributed electricity systems which require distributed or decentralized ledgers for database management for efficient transactions. Distributed Ledger Technology (DLT) are a form of decentralized ledgers where the transactions (energy, information and money) among various entities are maintained. One such DLT is blockchain technology which offers several advantages. Data recorded in blockchains are difficult to tamper with; have privacy protection; facilitate fast, accurate and real-time settlement of financial transactions. Contemporary research has started focusing on their possible applications in energy systems. State-of-the-art suggests that while business and market aspects have been extensively discussed, the electrical constraints and implementation methodologies have not been adequately addressed. Furthermore, all the reviewed projects have implemented only peer-to-peer transactions that are not scalable. To incorporate the new entities like prosumers, intermicrogrid transactions and interactions with the legacy power grid, new structural and operational frameworks are necessary. The proposed research explores the possibility of developing blockchain enabled smart microgrids (BSMG) with the above frameworks. It aims to build a conceptual framework of BSMG, including the transaction protocols and process flows. It proposes inclusion of network constraints in a three-levelled transaction setup which is executed over a four-layered architecture. Another practical challenge is that BSMGs may be set up on different blockchain platforms. Hence, this paper also proposes implementing Inter-Blockchain Protocol for the first time to include interoperability and communication between different platforms. Finally the performance metrics that will be used to validate the BSMGs are outlined.

Blockchain technology (BCT) has emerged as a game-changer for many industries since its inception in 2008. Its application in the energy industry as blockchain enabled interconnected smart microgrids (BSMG) is on the rise as it can execute energy trading, automate the market operations, manage the grid, and facilitate real-time payments. With the increase in usage of BSMGs, different types of BCT will emerge, making the system heterogeneous in nature. BCT is also limited currently due to its scalability and low transaction rate. Interoperability between heterogeneous BSMGs can counteract the drawbacks and improve the functionality and, thereby, adoption of BCT in energy. This paper recognises the need for interoperability and thoroughly reviews the different methods of interoperability that currently exist (i.e., notary mechanism, relay or side chains, hashed time-locked contracts, and blockchain routers). Two relay mechanisms - Polkadot and Cosmos with Inter Blockchain Communication Protocol (IBC) are reviewed further to determine the usability of the protocols. Finally, a conceptual architecture of interconnection of heterogeneous BSMGs is proposed. Conceptual solution to connecting Ethereum and Hyperledger Fabric to the Cosmos Hub through IBC is explored. While interoperability between heterogeneous users is addressed in Decentralized Finance (DeFi), it has not yet been addressed in energy. A conceptual solution is provided for this research gap for the first time in energy domain.