# The Potential of Blockchain Technology and Smart Contracts in the Energy Sector: A Review
## 3 Research Methodology and Literature Classification
### Literature Classification
#### 3.2.2 Energy Management and Operations (EMnO)  
The category \"Energy management and operation\" encompasses the technical aspects of energy systems management and optimization. The following subcategories were identified in this category:  
* Demand response and energy flexibility: This subcategory deals with the ability of energy systems to adjust their power output in response to changes in the grid load. Demand response strategies contribute to the reduction of peak loads on the grid and the supply and demand balancing. * Network management and balancing: Mainly concerned with managing electricity flow on the grid to ensure that supply meets demand. This may include real-time monitoring of the grid, balancing power flows, and managing the integration of renewable energy sources. * Asset management and maintenance: Focuses on the maintenance and optimization of energy assets such as power plants, transmission lines, and distribution networks. This may include monitoring of equipment performance and optimizing scheduled maintenance of assets so as to minimize downtime. The study of [PERSON] et al. [30] delves into the challenges of standardization, cybersecurity establishment, legal aspects, and inter-operability enhancement of smart contracts, aiming to assist decision-makers. It also presents a first attempt towards the standardization of smart contracts (SCs) within the field of power and energy as a work in progress activity under the IEEE Standards Association (IEEE SA) P2418.5 Working Group. A template that can be applied to various energy use cases is suggested to assist in creating a DLT agnostic reference model. This model aims to promote the adoption of DLT technology by industry players in a consistent way. The ultimate goal is to speed up the adoption of this technology, while at the same time it discusses additional aspects of smart contracts regarding standardization, cybersecurity, legality, and inter-operability to help users and policymakers in the decision-making process. According to [PERSON] et al. [40] the challenges faced in integrating green and renewable energy technologies through the smart grid concept include the effective management of the growing interconnections within the energy grid as it evolves from a centralized to a decentralized structure. In addition, the paper addresses issues related to security, data protection, and privacy in the use and exchange of electricity data within the smart grid. It is estimated that blockchain technology has the potential to enhance the smart grid concept by facilitating energy trading, providing record aggregation systems, managing power flow in specific regions, improving energy trading processes through credit-based payment systems, and addressing the confidentiality and safety concerns of the grid. They also report the limitation that blockchain-based energy technology is at an early phase globally and lacks a uniform structure that will permit the technology to display its full potential. The transition from conventional means of payment for energy to an economy with new transaction structures will take some reasonable time for effective use by the young to the elderly. The study of [PERSON] et al. [56] address issues related to the efficient coordination of wind farms equipped with power-to-gas (P2G) systems across multiple energy markets. The challenges posed include handling the remote locations of wind farms, ensuring secure and reliable coordination, and managing complex smart contracts with limited logic complexity. Additionally, it deals with the need to optimize scheduling results while considering revenues from energy trades and potential penalties for contract violations. It also proposes an automated scheduling approach for wind farms with power-to-gas systems. It uses a smart contract to coordinate between the wind farms and multiple energy markets. It also reports that by deploying P2G (Peer to Grid), wind farms can not only benefit from participating in multiple energy markets, but also contribute more for carbon reduction.