Peer-to-Peer Energy Trading meets IOTA: Toward a Scalable, Low-Cost, and Efficient Trading System

TL;DR

This paper introduces a scalable, low-cost P2P energy trading system using IOTA 2.0, enhancing efficiency and performance for microgrids compared to traditional blockchain solutions.

Contribution

It presents a novel multi-layer P2P energy trading framework leveraging IOTA 2.0's unique features and smart contracts, with a hierarchical market and routing structure.

Findings

Demonstrates improved speed and energy efficiency over blockchain-based systems

Shows cost benefits and scalability for interconnected microgrids

Validates system performance through simulations

Abstract

Peer-to-Peer (P2P) energy trading provides various benefits over conventional wholesale energy markets and makes renewable energy more accessible. This paper proposes a novel multi-layer P2P energy trading system for microgrids based on IOTA 2.0, which is a distributed ledger technology (DLT) primarily designed for Internet-of-Things (IoT) applications. The proposed energy trading system, which is a manifestation of a cyber-physical system (CPS), exploits the benefits brought by IOTA's unique ledger structure as well as the recently introduced IOTA smart contract protocol (ISCP). Further, it implements a uniform double-auction market mechanism and a hierarchical routing structure for interconnected microgrids. Performance evaluation demonstrates key benefits over wholesale markets as well as speed, energy efficiency and cost benefits over conventional blockchain-based P2P energy trading systems.