Blockchain-based smart contract for p2p energy trading in a microgrid environment

Abstract

The purpose of this study is to propose a method of peer-to-peer (P2P) energy trading that allow prosumers with energy deficiency to buy energy from prosumers with excess energy in a microgrid system. The proposed method solves the problems associated with lack of trust in P2P energy trading and utilized the blockchain technology that made it impossible to tamper with data. The data is referred as transaction generated by using blockchain. A blockchain based smart contract execute the trading and payment rules without the intermediaries. Thus, the security and fairness of energy trading are significantly enhanced compared to conventional database technology. Without the third-party intervention, a miner that is selected among the participants in the microgrid environment process all the transaction generated from buying and selling energy. The smart contract consists of two main components; bidding and settlement module, payment module. The smart contract deployed in blockchain test network to test the interaction of smart contract. From the simulation, the proposed method is validated using realistic data with the Ethereum Virtual Machine (EVM). The method will be expected to be useful to designers who need to integrate renewable energy in a microgrid system.