A Distributed Ledger-Based Automated Marketplace for the Decentralized Trading of Renewable Energy in Smart Grids

Abstract

We present a prototype of a decentralized power trading system based on the use of distributed ledger technology. This sort of efficient, decentralized marketplace is needed to empower prosumers and make them first-class members of a smart, decentralized power grid in order to drive further renewable energy adoption. Unlike the bulk of previous work in this field, we focus on private permissioned distributed ledgers rather than conventional blockchains. The proposed solution is entirely independent of cryptocurrency, with an explicit design capability of being adapted piecemeal without any fundamental changes to the present regulatory environment. To be economical, efficient, and scalable, our prototype is based on a lean, Corda-based private permissioned distributed ledger. It allows for instant, automatic bidding on and trading of ‘power promises’ and the robust implementation of short-term, small-scale liquid electrical power futures. We demonstrate that the prototype performs well and presents several clear advantages over existing solutions based on conventional blockchains. Therefore, the proposed approach represents a promising, robust solution to the smart grid decentralized power trading problem.