A P2P Electricity Trading System by Integrating Blockchain with Optimization

Abstract

With numerous distributed energy sources as participants, blockchain shows great potential in the peer-to-peer electricity markets. However, blockchain originally is designed for finical system, and are not fully suitable for cyber-physical systems. This paper proposes a P2P power trading method, in which an optimal solution proof mechanism is designed. It combines the consensus mechanism with the optimization problems of the physical system which are difficult to solve but easy to verify, saving computing power therefore. Meanwhile, we redesign the blockchain structure. The power grid operation status is recorded in the block body, so that the link between blockchains is integrated into the physical state transfer constraints. As for the trading mechanism, a real-time transaction mechanism based on smart contract is proposed according to the mechanism and mode of energy trading. The simulation of transactions in a decentralized power trading system validates the proposed power trading method.