Smart contract-based peer-to-peer energy token trading between active retailers and prosumers

Abstract

Power systems undergoes a massive change in power delivery and consumer-side production, e.g., penetration of renewable energy resources (RES) and reshaping of consumers to form prosumers, in which the Peer-to-Peer (P2P) energy trading markets are among the most promising solutions for handling these changes. In this paper, a fully decentralized smart contract-based P2P energy token trading market for active retailers and prosumers is presented. Active retailers in this market play as a connection between the local P2P market and upstream markets, which enables the participation of small-scale prosumers in the energy and ancillary markets. They can optimize their decision-making strategy to gain the most profit from energy markets. This model can first encourage retailers to participate in the local P2P energy token market, and consequently, the utilization of renewable energy resources in the power systems is facilitated. The simulation results showed the importance of the demand response program and the effectiveness of the DR program on the independence of the local P2P energy token trading market.