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A blockchain-based decentralized energy management in a P2P trading system

Local energy generation and peer to peer (P2P) energy trading in the local market can reduce energy consumption cost, emission of harmful gases (as renewable energy sources (RESs) are used to generate energy at user’s premises) and increase smart grid resilience. In this paper, to implement a hybrid P2P energy trading market, a blockchain-based solution is proposed. A blockchain-based system is fully decentralized and it allows the market members to interact with each other and trade energy without involving any third party. Smart contracts play a very important role in the blockchain-based energy trading market. They contain all the necessary rules for energy trading. We have proposed three smart contracts to implement the hybrid electricity trading market. The market members interact with main smart contract which requests P2P smart contract and prosumer to grid (P2G) smart contract for further processing. The main objectives of this paper are to propose a model to implement an efficient hybrid energy trading market while reducing cost and peak to average ratio (PAR) of electricity.