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Privacy-Preserving Peer-to-Peer Energy Trading in Blockchain-Enabled Smart Grids Using Functional Encryption

Author

Listed:
  • Ye-Byoul Son

    (Department of Computer Engineering, Inha University, Incheon 22212, Korea)

  • Jong-Hyuk Im

    (Department of Computer Engineering, Inha University, Incheon 22212, Korea)

  • Hee-Yong Kwon

    (Department of Computer Engineering, Inha University, Incheon 22212, Korea)

  • Seong-Yun Jeon

    (Department of Computer Engineering, Inha University, Incheon 22212, Korea)

  • Mun-Kyu Lee

    (Department of Computer Engineering, Inha University, Incheon 22212, Korea)

Abstract

Advanced smart grid technologies enable energy prosumers to trade surplus energy from their distributed renewable energy sources with other peer prosumers through peer-to-peer (P2P) energy trading. In many previous works, P2P energy trading was facilitated by blockchain technology through blockchain’s distributive nature and capacity to run smart contracts. However, the feature that all the data and transactions on a blockchain are visible to all blockchain nodes may significantly threaten the privacy of the parties participating in P2P energy trading. There are many previous works that have attempted to mitigate this problem. However, all these works focused on the anonymity of participants but did not protect the data and transactions. To address this issue, we propose a P2P energy trading system on a blockchain where all bids are encrypted and peer matching is performed on the encrypted bids by a functional encryption-based smart contract. The system guarantees that the information encoded in the encrypted bids is protected, but the peer matching transactions are performed by the nodes in a publicly verifiable manner through smart contracts. We verify the feasibility of the proposed system by implementing a prototype composed of smart meters, a distribution system operator (DSO) server, and private Ethereum blockchain.

Suggested Citation

  • Ye-Byoul Son & Jong-Hyuk Im & Hee-Yong Kwon & Seong-Yun Jeon & Mun-Kyu Lee, 2020. "Privacy-Preserving Peer-to-Peer Energy Trading in Blockchain-Enabled Smart Grids Using Functional Encryption," Energies, MDPI, vol. 13(6), pages 1-22, March.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:6:p:1321-:d:331641
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    References listed on IDEAS

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    1. Michael J. Fell & Alexandra Schneiders & David Shipworth, 2019. "Consumer Demand for Blockchain-Enabled Peer-to-Peer Electricity Trading in the United Kingdom: An Online Survey Experiment," Energies, MDPI, vol. 12(20), pages 1-25, October.
    2. Juhar Abdella & Khaled Shuaib, 2018. "Peer to Peer Distributed Energy Trading in Smart Grids: A Survey," Energies, MDPI, vol. 11(6), pages 1-22, June.
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    Citations

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    Cited by:

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    2. Piotr F. Borowski, 2021. "Digitization, Digital Twins, Blockchain, and Industry 4.0 as Elements of Management Process in Enterprises in the Energy Sector," Energies, MDPI, vol. 14(7), pages 1-20, March.
    3. Bogdan-Constantin Neagu & Ovidiu Ivanov & Gheorghe Grigoras & Mihai Gavrilas & Dumitru-Marcel Istrate, 2020. "New Market Model with Social and Commercial Tiers for Improved Prosumer Trading in Microgrids," Sustainability, MDPI, vol. 12(18), pages 1-43, September.
    4. Chathurangi Edussuriya & Umar Marikkar & Subash Wickramasinghe & Upul Jayasinghe & Janaka Alawatugoda, 2023. "Peer-to-Peer Energy Trading through Swarm Intelligent Stackelberg Game," Energies, MDPI, vol. 16(5), pages 1-17, March.
    5. 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.
    6. Khuram Shahzad & Sohail Iqbal & Hamid Mukhtar, 2021. "Optimal Fuzzy Energy Trading System in a Fog-Enabled Smart Grid," Energies, MDPI, vol. 14(4), pages 1-16, February.
    7. Kirli, Desen & Couraud, Benoit & Robu, Valentin & Salgado-Bravo, Marcelo & Norbu, Sonam & Andoni, Merlinda & Antonopoulos, Ioannis & Negrete-Pincetic, Matias & Flynn, David & Kiprakis, Aristides, 2022. "Smart contracts in energy systems: A systematic review of fundamental approaches and implementations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
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    9. Min Hong & Xiaolei Wang & Zhenghui Li, 2022. "Will Oil Price Volatility Cause Market Panic?," Energies, MDPI, vol. 15(13), pages 1-17, June.
    10. Daniel Sousa-Dias & Daniel Amyot & Ashkan Rahimi-Kian & John Mylopoulos, 2023. "A Review of Cybersecurity Concerns for Transactive Energy Markets," Energies, MDPI, vol. 16(13), pages 1-32, June.
    11. Mohamed S. Abdalzaher & Mostafa M. Fouda & Mohamed I. Ibrahem, 2022. "Data Privacy Preservation and Security in Smart Metering Systems," Energies, MDPI, vol. 15(19), pages 1-19, October.
    12. Danalakshmi D. & Gopi R. & A. Hariharasudan & Iwona Otola & Yuriy Bilan, 2020. "Reactive Power Optimization and Price Management in Microgrid Enabled with Blockchain," Energies, MDPI, vol. 13(23), pages 1-20, November.
    13. Manuel Casquiço & Bruno Mataloto & Joao C. Ferreira & Vitor Monteiro & Joao L. Afonso & Jose A. Afonso, 2021. "Blockchain and Internet of Things for Electrical Energy Decentralization: A Review and System Architecture," Energies, MDPI, vol. 14(23), pages 1-26, December.

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