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A Proof-of-Stake public blockchain based pricing scheme for peer-to-peer energy trading

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  • Yang, Jiawei
  • Paudel, Amrit
  • Gooi, Hoay Beng
  • Nguyen, Hung Dinh

Abstract

Peer-to-peer (P2P) energy trading allows prosumers to trade energy directly without intermediaries. To provide a payment system and record transaction information, public blockchain is designed to match the decentralized feature of the P2P market. The incentive for nodes outside the microgrid is removed but it is maintained for the prosumers within the microgrid. Therefore the number of miner competitors is limited to decrease the mining difficulty and its power consumption. Proof-of-Stake (PoS) consensus protocol defines the function of blockchain with its mining mechanism. Miners sacrifice part of their stake to compensate for the power losses and reduce the price gap from the traditional prosumer-to-grid trading (Feed-in-tariff). Moreover, the proposed model also contributes to increase the social welfare by improving producers’ income and consumers’ cost-saving through the designed pricing scheme, which eliminates the price gap between buying and selling. Successful mining is encouraged by rewards accordingly. A case study is introduced where a microgrid model with 27 prosumers is tested with the PoS public blockchain-based pricing scheme. The process of model implementation and smart contract creation are specifically demonstrated. Numerical results prove the feasibility and effectiveness of the proposed method.

Suggested Citation

  • Yang, Jiawei & Paudel, Amrit & Gooi, Hoay Beng & Nguyen, Hung Dinh, 2021. "A Proof-of-Stake public blockchain based pricing scheme for peer-to-peer energy trading," Applied Energy, Elsevier, vol. 298(C).
    • Handle: RePEc:eee:appene:v:298:y:2021:i:c:s0306261921005900
    DOI: 10.1016/j.apenergy.2021.117154
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    Cited by:

    1. Soria, Jorge & Moya, Jorge & Mohazab, Amin, 2023. "Optimal mining in proof-of-work blockchain protocols," Finance Research Letters, Elsevier, vol. 53(C).
    2. Alessandra Chiarini & Lorenzo Compagnucci, 2022. "Blockchain, Data Protection and P2P Energy Trading: A Review on Legal and Economic Challenges," Sustainability, MDPI, vol. 14(23), pages 1-20, December.
    3. Liu, Junhong & Long, Qinfei & Liu, Rong-Peng & Liu, Wenjie & Hou, Yunhe, 2023. "Online distributed optimization for spatio-temporally constrained real-time peer-to-peer energy trading," Applied Energy, Elsevier, vol. 331(C).
    4. Bhargav Appasani & Sunil Kumar Mishra & Amitkumar V. Jha & Santosh Kumar Mishra & Florentina Magda Enescu & Ioan Sorin Sorlei & Fernando Georgel Bîrleanu & Noureddine Takorabet & Phatiphat Thounthong , 2022. "Blockchain-Enabled Smart Grid Applications: Architecture, Challenges, and Solutions," Sustainability, MDPI, vol. 14(14), pages 1-33, July.
    5. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    6. Nadhira Khezami & Nourcherif Gharbi & Bilel Neji & Naceur Benhadj Braiek, 2022. "Blockchain Technology Implementation in the Energy Sector: Comprehensive Literature Review and Mapping," Sustainability, MDPI, vol. 14(23), pages 1-45, November.

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