Credibility-driven pricing settlements in peer-to-peer energy trading using blockchain technology

Blockchain-enabled peer-to-peer electricity trading using behind-the-meter deployment encourages users to increase their utilisation of renewable energy while consuming energy within the local energy markets (LEMs). Effective pricing settlements can assist mutual trust among users and encourage them to participate in trading. In this work, we focus on pricing settlement and present a novel score-based model aimed at accelerating stable P2P trading by increasing the number of pricing settlements among participants and minimising trading (or power delivery agreements) failures without incurring any financial loss. We present a credibility-based score model to better manage the larger differences in offered prices between sellers and buyers. In particular, the algorithm analyses historical transactions to calculate the credibility score between the seller and buyer. This score falls within the user’s threshold range, allowing for price adjustments during pricing settlement. Simulation results show that more successful trading transactions encourage participation despite wider price differentials between ToU and FiT rates and mitigating financial losses for users.