Decentralized and stable matching in Peer-to-Peer energy trading

TL;DR

This paper introduces two distributed, blockchain-based matching mechanisms for P2P energy trading that eliminate central authority influence, aiming to promote free markets and reduce energy costs.

Contribution

It proposes novel distributed matching algorithms for P2P energy trading that operate without central authority interference, enhancing fairness and reducing costs.

Findings

Distributed mechanisms improve fairness in energy matching.

Simulation shows reduced influence of central authority.

Mechanisms maintain stability and efficiency.

Abstract

In peer-to-peer (P2P) energy trading, a secured infrastructure is required to manage trade and record monetary transactions. A central server/authority can be used for this. But there is a risk of central authority influencing the energy price. So blockchain technology is being preferred as a secured infrastructure in P2P trading. Blockchain provides a distributed repository along with smart contracts for trade management. This reduces the influence of central authority in trading. However, these blockchain-based systems still rely on a central authority to pair/match sellers with consumers for trading energy. The central authority can interfere with the matching process to profit a selected set of users. Further, a centralized authority also charges for its services, thereby increasing the cost of energy. We propose two distributed mechanisms to match sellers with consumers. The first mechanism doesn't allow for price negotiations between sellers and consumers, whereas the second does. We also calculate the time complexity and the stability of the matching process for both mechanisms. Using simulation, we compare the influence of centralized control and energy prices between the proposed and the existing mechanisms. The overall work strives to promote the free market and reduce energy prices.