A peer-to-peer energy bidding and transaction framework for prosumers based on blockchain consensus mechanism and smart contract

Abstract

The deepening of electricity market reform and the increasing popularity of distributed energy resources (DERs) have led to significant challenges for the decentralized bidding and transaction mechanism for DERs to participate in the electricity market. Blockchain, as a distributed ledger, has emerged as one of the solutions for decentralized transactions, but blockchain-based peer-to-peer (P2P) transactions suffer from output uncertainty that cannot be effectively quantified and higher default rates. This study proposes a energy P2P bidding and transaction mechanism based on blockchain consensus and smart contracts, which effectively expands the extensibility of energy trading. Firstly, a strategy-varying auction mechanism is established, which considers the credibility and release time for prosumers. Secondly, a three-person non-cooperative P2P transaction process based on the uncertainty of photovoltaic (PV) is designed to improve the profit and stability of electricity transactions. Thirdly, a blockchain consensus mechanism based on credibility is designed. The fairness of the trading process is effectively enhanced. Finally, the transaction process is simulated on smart contracts. The proposed model is validated by theoretical and experimental analyses. The experimental results demonstrate that this study effectively reduces the transaction default rate to 1.4% and amplifies the profits of prosumers.