A Conceptual Model for Peer to Peer Energy Trading using Blockchain

Power grids are undergoing significant changes due to rapid growth in renewable energy resources. While these changes enhance sustainability and efficiency, they also create significant management challenges as the complexity of power systems increases. To tackle these challenges, decentralized solutions are emerging, in which local communities are arranged in microgrids. Within the microgrid a prosumer (i.e., consumers with energy generation and consumption capabilities) and the consumer can trade energy with each other without involving any arbitrator, thereby smoothing the load on the main grid. It is very important to design a reliable transaction platform for the energy trading. This paper describes the efficient and reliable model for peer to peer energy trading based on Blockchain. Peer to peer transaction platform build on smart contracts, coupled with blockchain removes the reliance on the central system between transaction parties. Keywords—Blockchain; Distributed Energy Resources(DER); Proof of stake; Smart contracts; Smart grid; Smart meter