Decentralized P2P Trading based on Blockchain for Retail Electricity Markets

Abstract

This paper introduces peer to peer (P2P) trading mechanisms based on decentralized Blockchain to facilitate retail electricity market for ever-increasing distributed energy resources (DERs). The Blockchain network supports fast and secure retail trading among DERs and facilitates a sustainable local P2P trading platform. In this decentralized Blockchain architecture no single entity or organization has control over the entire system rather all users collectively maintain control. The effectiveness of the proposed automated market design and optimization is simulated using different use case scenarios in an open source Blockchain Simulator and MATLAB. The results show the efficacy of the trading mechanism in achieving demand response through strategies such as peak load shaving, load shifting, and integration of DERs