Privacy-Friendly Peer-to-Peer Energy Trading: A Game Theoretical Approach

TL;DR

This paper introduces a decentralized, privacy-preserving energy trading platform using game theory and homomorphic encryption, enabling secure, competitive peer-to-peer energy transactions without trusted third parties.

Contribution

It presents PFET, a novel privacy-friendly energy trading scheme based on Stackelberg competition and homomorphic encryption, ensuring privacy and decentralization in energy markets.

Findings

PFET preserves user privacy effectively.

The scheme operates efficiently in decentralized settings.

It enables competitive energy trading without trusted third parties.

Abstract

In this paper, we propose a decentralized, privacy-friendly energy trading platform (PFET) based on game theoretical approach - specifically Stackelberg competition. Unlike existing trading schemes, PFET provides a competitive market in which prices and demands are determined based on competition, and computations are performed in a decentralized manner which does not rely on trusted third parties. It uses homomorphic encryption cryptosystem to encrypt sensitive information of buyers and sellers such as sellers$'$ prices and buyers$'$ demands. Buyers calculate total demand on particular seller using an encrypted data and sensitive buyer profile data is hidden from sellers. Hence, privacy of both sellers and buyers is preserved. Through privacy analysis and performance evaluation, we show that PFET preserves users$'$ privacy in an efficient manner.