A Blockchain-Based Load Balancing in Decentralized Hybrid P2P Energy Trading Market in Smart Grid

Abstract

Local energy generation and peer to peer (P2P) energy trading in the local market can reduce the energy consumption cost, emission of harmful gases (as renewable energy sources are used to generate energy at user's premises) and increase the smart grid resilience. However, local energy trading with peers can have trust and privacy issues. A centralized system can be used to manage this energy trading but it increases the overall cost of the system and also faces several issues. In this paper, to implement a hybrid P2P energy trading market, a blockchain-based system is proposed. It is fully decentralized and allows the market members to interact with each other and trade energy without involving a third party. Smart contracts play a very important role in the blockchain-based energy trading market. They contain all the necessary rules for energy trading. We have proposed three smart contracts to implement the hybrid electricity trading market. The market members interact with the main smart contract, which requests P2P and prosumer to grid smart contracts for further processing. The main objectives of this paper are to propose a model to implement an efficient hybrid energy trading market while reducing cost and peak to average ratio of electricity.