Local market mechanisms survey for peer-to-peer electricity trading on blockchain platform
Blockchain is a promising technology for the local trading of electricity. It has specific components, such as smart contracts, data ledger, consensus, and provides many benefits for both buyers and sellers because they are obtaining/generating electricity at better prices compared with the elect...
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| Format: | Article |
| Language: | English |
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Naval Academy Press
2020-06-01
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| Series: | Scientific Bulletin of Naval Academy |
| Online Access: | https://www.anmb.ro/buletinstiintific/buletine/2020_Issue1/04_FAR/7.pdf |
| Summary: | Blockchain is a promising technology for the local trading of electricity. It has
specific components, such as smart contracts, data ledger, consensus, and provides many
benefits for both buyers and sellers because they are obtaining/generating electricity at better
prices compared with the electricity from the public grid. This practice leads to a better
integration of renewable energy sources, increasing the appetite for new local generation
sources and storage facilities, transparency, and trading opportunities for all market players.
Grid operators also benefit from blockchain since the grid loading will be reduced as the grid
does not have to transmit or distribute electricity from large power plants located far away
from consumption place. In the end, the market players will benefit from reducing the grid
loading and alleviating the congestions as an onerous investment in grid infrastructure is avoided.
In this paper, we will analyze the advantages of different electricity market mechanisms for
trading and settlement. Several auction mechanisms such as pay-as-bid, uniform price,
generalized second price, or Vickrey-Clarke-Groves are taken into account as feasible options
for local markets and peer-to-peer trading. |
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| ISSN: | 2392-8956 1454-864X |