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Decentralized Electricity Transaction Mechanism in Distribution Network Based on Blockchain Technology

Power systems are undergoing a fundamental transition with penetration of a great number of distributed resources. Traditionally passive distribution network consumers have working been as ‘prosumers’, actively managing their production and consumption of energy. Thus, the new business models are being investigated and implemented. In this paper, a blockchain-based energy transaction mechanism is introduced to suit the decentralized peer-to-peer energy trading. It encourages prosumers to initiate real-time trading with others nearby directly according to their actual production and consumption of energy. The transaction rules are formulated in the form of smart contract, applying the blockchain technology to clearly define the rights and obligations of prosumers. The proposed decentralized power transaction mechanism can implement peer-to-peer multilateral bidding transactions among prosumers, which encourages prosumers to put forward the reasonable demand in order to achieve efficient distribution and rational utilization of energy resources.