Distributed Double Auction for Peer to Peer Energy Trade using Blockchains

Abstract

In this paper we use the blockchain technology to develop a peer to peer energy trade platform without a trusted third party. Our main contribution is a novel distributed double auction mechanism which allows any peer to act as an auctioneer and the blockchain mechanism ensures that a peer behaves lawfully while acting as an auctioneer. Using experimental evaluation we show that (1) the distributed auction converges quickly, (2) it minimizes energy loss due to long transmission, (3) computational overhead due to employing a blockchain is negligible, (4) it is efficient and (5) it can implement trade restrictions imposed by the energy distribution network.