Blockchain-Based Peer-to-Peer Energy Trading Method

Myles J. Thompson, Hongjian Sun, Jing Jiang*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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Abstract

Blockchain-enabled peer-to-peer energy trading provides a method for neighbours and communities to trade energy generated from local and distributed renewable energy sources. Effective matching can facilitate greater energy efficiency during transmission, increases user welfare through preference and improves power quality. The proposed algorithm builds upon work to develop a system of scoring an energy transaction. It uses a McAfee-priced double auction, and scores based upon preference of price, locality, and energy generation type, alongside the quantity of energy being traded. The algorithm pre-evaluates transactions to determine the optimal transactional pathway. The transaction carried out is that leading to the greatest cumulative score. Simulated over a range of scenarios, the proposed algorithm provides an average increase in user welfare of 75%. Commercially, the algorithm may be deployed in small to large settlements whilst remaining stable. By reducing power loss, the algorithm allows consumers to save 25% on their cost of energy, whilst providing a 50% increase in the revenue earned by prosumers.
Original languageEnglish
Number of pages9
JournalCSEE Journal of Power and Energy Systems
Publication statusAccepted/In press - 15 Jul 2021

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