IEEE Systems, Man and Cybernetics Magazine - January 2023 - 38

investigating the role of blockchain
technology in modern power
systems. In addition, opportunities,
challenges, and limitations of
blockchain technology in modern
power systems are discussed.
Introduction
Traditional power systems were
developed many years ago, and
they have been in a centralized
structure, which means the power
that is generated in power plants
can be transmitted to load centers
via transmission lines and distribution grids. In traditional
power systems, there was no interaction between customers
and power utilities, and this is mainly referred to
as unidirectional power flow. Power generation in traditional
power systems produced more pollution due to fossil
fuel consumption, and there was limited automation
[1]. Since there have been significant changes in energy
consumption and the high penetration of distributed generation
(DG) units into power grids, traditional power systems
in a centralized structure have become less efficient
and there has been a need to move toward smart energy
systems, the so-called smart grid. Smart grid by itself is
not a technology, and it is mainly a combination of different
technologies, such as renewable energy sources
(RESs), communication networks, Internet of Things
(IoT), etc., and it is indeed changing from traditional
power systems to modern ones in a decentralized and distributed
structure. Smart grid can make power systems
more reliable, and customers can participate in power
markets. Smart grid mainly operates based on bidirectional
data and energy flow [1], [2], [3].
In the past few decades, there has been a massive
The value in the
energy sector is
shifting from where
it traditionally has
been, i.e., generation,
transmission, and
distribution sectors, to
the customer level.
In other words, the value in the
energy sector is shifting from
where it traditionally has been,
i.e., generation, transmission, and
distribution sectors, to the customer
level. In addition, from the
power systems operator's point of
view, by using a reliable communication
infrastructure, more DG
units and active consumers can
interact with power grids and
regulate power grids voltage and
frequency and also make power
systems more secure and reliable.
The main requirements for power systems transformation
out of the IT solution are as follows:
◆ Intelligence at all nodes in power systems: This feature
provides a higher level of agility, scalability, and integration
in power systems. For instance, a massive
number of electric vehicles (EVs) can be plugged into
power grids whenever required regardless of their
impacts on the distribution feeders, which indeed
requires capital upgrades to follow, if all of those EVs
are charging on distribution feeders at the same time
and not in a coordinated way [5].
◆ Real-time data collection in power systems: This
requirement provides energy-related information to
both the utilities and consumers. Real-time data collection
helps utilities to observe changes in the power market
and status of power systems and check the impacts
of such changes. Checking the charging/discharging status
of EVs and monitoring their impacts are the benefits
of real-time data collection in modern power systems.
transformation from the legacy physical infrastructure of
power grids and centralized structure toward the decentralized
structure and interest among consumers in
terms of democratization of energy, mainly based on a
prosumer model. Figure 1 demonstrates such a transformation
in power systems indicating a shift in the value of
energy from traditional power systems to customers [4].
Value of Energy
Generation
Generation
Transmission
Transmission
Distribution
Distribution
◆ Connectivity of all nodes in power systems: In order to
securely and adequately operate power systems, all
components should be connected to the system. However,
when hundreds of generators to millions of IoT
devices over a longer term are connected to the system
and legacy infrastructure cannot handle the throughput
of data received from all those IoT devices, the system
cannot properly operate.
Ratepayer
Customer
Valueof Energy
Figure 1. The landscape of power systems transformation.
38 IEEE SYSTEMS, MAN, & CYBERNETICS MAGAZINE January 2023
◆ Data ownership: Since the collected data by all IoT
devices in power systems can be used for monitoring
and control, a new view regarding
data ownership, called privatization, is
introduced. The generated data should
be appropriately handled in such a way
that both the possession of and responsibility
for the collected information
can be considered.
◆ Cybersecurity: Due to the fact that a
large amount of data is exchanged in
modern power systems, they are always
exposed to cyberthreats. By targeting
the data exchange process, malicious
attackers can inject false and stealthy
IEEE Systems, Man and Cybernetics Magazine - January 2023

Table of Contents for the Digital Edition of IEEE Systems, Man and Cybernetics Magazine - January 2023
