Reputation-based uniform pricing & energy distribution in peer-to-peer energy trading market

Abstract

An increase in the popularity of peer-to-peer energy trading in smart grids due to the massive integration of renewable energy sources demands effective and competitive pricing and energy allocation policies to ensure fairness within the market framework. Considering the scalability issues, technical complexity, and operational costs of distributed ledger technology such as blockchain, the reputation of the participants becomes a prominent factor to ensure trustworthiness, reduce risk, and increase market efficiency. This paper proposes a novel method to determine the reputation of participants within the energy market. Based on the evaluated reputation of the participants, an effective pricing method along with an energy distribution technique is devised by considering several market dynamics that significantly affect the pricing and energy allocation method. Extensive experiments have been conducted to validate the effectiveness of the proposed model. The results demonstrate that through the proposed model, the energy bills of the buyers can be reduced by 44%. This highlights the tangible benefits and practical applicability of the proposed approach in optimizing energy costs for consumers in the P2P energy trading ecosystem.