Peer-to-peer energy trading and smart contracting platform of community-based virtual power plant

Abstract

Traditional centralized transactions require a control center for user demand matching, settlement and other processes. However, with the increase in the penetration rate of distributed energy in the community, the explosive increase in the number of transactions leads to a decrease in efficiency and it is difficult to guarantee user privacy and information security. The smart contract technology based on blockchain technology has the characteristics of decentralization, traceability and tamper resistance, and these key factors show unique advantages in distributed energy transactions. This paper explores Ethereum and smart contract technology, designs a peer-to-peer energy sharing mechanism with reward and punishment incentives and establishes a smart contract trading platform for smart community-based virtual power plant (CVPP). This paper verifies the functionality and effectiveness of smart contract. The results show that when the supply and demand ratio changes, the user can conduct energy transactions according to the contract without a third-party organization, which solves the problem of trust between the two parties and achieves the expected effect and runs successfully. In addition, the simulation results show that the peer-to-peer transaction based on smart contracts reduces the energy cost per household and increases the total benefit of CVPP.