Smart contracts used in peer-to-peer energy trading

Abstract

Systems are changing their operation mode from centralized operation mode to decentralized operation mode, to prevent a single point of failure. In recent years, with the increasing adoption rates of renewable energy and smart grids, the future energy system could potentially operate in a decentralized way.

As microgrids infrastructure can ensure their reliabilities of electricity supply using renewable energy resources with the aid of existing solar energy technology and wind energy technology. Microgrids adopted clean energy resources and provides attractive electricity supply prices and their reliabilities has gained interest in the public to rely their electricity needs on microgrid infrastructure instead of relying on diesel-driven generators.

With increasing reliance on microgrid electricity supply, transaction platforms are necessary for microgrid infrastructure to start their micro-business of selling renewable energy and incurs charges for energy consumption from interested parties. As we are shifting towards the decentralised way of operation, smart contract, a form of digital contract that utilizes blockchain technology are preferred in the peer-to-peer energy trading between interested parties to fulfil their own trading needs.

This paper presents a web application with smart contracts to implement a transaction platform between end-user consumers and microgrid infrastructure and also simulate all necessary sources of data that could be used to simulate an actual billing smart contract in the microgrid open energy market.