Blockchain-enabled solutions for fair and efficient peer-to-peer renewable energy trading: An experimental comparison
Amin Zakhirehkar Sahih, Alireza Abbasi, Milad Ghasri
Abstract
Peer-to-peer (P2P) renewable energy trading, facilitated by designing P2P market smart contracts on blockchain servers, is a promising approach to increase investments in cleaner energy generation. To enhance trading efficiency and pricing fairness, as the major challenges of P2P market designs, this study introduces two new market mechanisms, Hybrid Auction Coalition (HAC), and innovative coalition business model (ICBM), respectively. The performance of these market mechanisms is contrasted with existing mechanisms from the literature with respect to electricity bills, market efficiency, fairness, and blockchain feasibility using a comprehensive list of indicators including costs and profits, fairness, market efficiency, and technical viability. Compared to traditional billing, ICBM and HAC increase sellers’ profit by 88% and 66% respectively, while both impose 13% more costs on buyers. ICBM and HAC also set the fairest prices compared to the existing markets. ICBM is shown to improve blockchain feasibility and market efficiency due to lighter on-chain calculations, and absolute clearing mechanisms. The results also demonstrate that HAC outperforms standalone auctions in every aspect which endorses the hybridization benefits. • Novel and efficient P2P Models, and blockchain-based mechanisms for P2P renewable energy trading. • Enhanced fairness concerns in P2P trading through a novel pricing mechanism. • Improved P2P trading efficiency & potentially increased local grid self-sufficiency. • Technical comparison of state-of-the-art blockchain-based P2P trading markets.