Hybrid Peer to Peer Energy Trading Approach with Ethereum, IoT and AWS

Abstract

The increasing global reliance on renewable energy, coupled with the strain on traditional electricity grids and limited access to power in rural areas, underscores the need for innovative solutions like Peer-to-Peer (P2P) energy trading platforms. This paper presents a hybrid Internet of Things (IoT) system designed for energy trading between prosumers (entities that both produce and consume energy), leveraging blockchain technology alongside AWS cloud infrastructure to ensure scalable and secure energy transactions. Our system integrates environmental sensors (solar, air) connected to microcontroller platforms like ESP32, facilitating real-time monitoring and management of energy production and consumption. Data from these devices is transmitted to AWS cloud architecture via IoT protocols such as MQTT and HTTP, ensuring secure, scalable storage, and reliable analysis. This robust architecture enhances real-time energy management, allowing prosumers to optimize energy usage. A key feature is the hybrid architecture combining decentralized Ethereum blockchain, which enables tamper-proof energy trading via smart contracts, and AWS cloud, which handles large-scale data processing. This dual system reduces reliance on centralized power grids, promotes energy independence, and supports decentralized energy markets. By using this platform, prosumers gain greater control over energy resources, promoting efficiency and sustainability while contributing to the future of decentralized energy economies.