Blockchain-based trading of energy savings assets: Enhancing transparency and efficiency in the energy market

Rising energy demands and increasing carbon emissions have intensified the need for scalable, transparent energy efficiency (EE) mechanisms. This study presents a blockchain-based system for trading energy savings assets (ESAs) digitized representations of verified energy savings generated primarily through municipal public lighting projects under the energy service company (ESCO) model. The proposed system leverages Hyperledger Fabric (HLF), a permissioned blockchain platform, to enable secure, transparent, and automated trading of surplus energy savings among urban local bodies (ULBs). It integrates IoT-enabled smart meters for real-time energy monitoring, smart contracts for automated transaction execution, and a decentralized ledger for tamper-proof recordkeeping, eliminating the need for third-party physical verification. Experimental results demonstrate that most ULBs retrofitting conventional lights with LEDs achieve surplus energy savings beyond mandated benchmarks, qualifying for ESA generation. The system supports asset creation with a throughput of 0.44 requests per second and trade execution with an average response time of 6.64 s over HLF blockchain platform. By ensuring transparency, auditability, and operational efficiency, the system establishes a foundation for a trust-driven EE marketplace, particularly valuable for emerging economies aiming to advance smart city initiatives and meet carbon reduction goals.