Blockchain-Based Peer-to-Peer Transactive Energy Management Scheme for Smart Grid System

Abstract

In Smart Grid (SG), Transactive Energy Management (TEM) is one of the most promising approaches to boost consumer participation in energy generation, energy management, and establishing decentralized energy market models using Peer-to-Peer (P2P). In P2P, a prosumer produces electric energy at their place using Renewable Energy Resources (RES) such as solar energy, wind energy, etc. Then, this generated energy is traded with consumers (who need the energy) in a nearby locality. P2P facilitates energy exchange in localized micro-energy markets of the TEM system. Such decentralized P2P energy management could cater to diverse prosumers and utility business models. However, the existing P2P approaches suffer from several issues such as single-point-of-failure, network bandwidth, scalability, trust, and security issues. To handle the aforementioned issues, this paper proposes a Decentralized and Transparent P2P Energy Trading (DT-P2PET) scheme using blockchain. The proposed DT-P2PET scheme aims to reduce the grid’s energy generation and management burden while also increasing profit for both consumers and prosumers through a dynamic pricing mechanism. The DT-P2PET scheme uses Ethereum-blockchain-based Smart Contracts (SCs) and InterPlanetary File System (IPFS) for the P2P energy trading. Furthermore, a recommender mechanism is also introduced in this study to increase the number of prosumers. The Ethereum SCs are designed and deployed to perform P2P in real time in the proposed DT-P2PET scheme. The DT-P2PET scheme is evaluated based on the various parameters such as profit generation (for prosumer and consumer both), data storage cost, network bandwidth, and data transfer rate in contrast to the existing approaches.