Smart Contract-Based System for Automating Energy Transactions in Peer-to-Peer Energy Marketplace

Abstract

The adoption of distributed energy resources (e.g., solar panels) is reshaping the energy landscape by enabling participants to trade energy efficiently. Electric vehicles (EVs) further improve this ecosystem by acting as mobile energy storage units that are capable of supplying power back to the grid. However, existing energy transaction systems heavily rely on centralized intermediaries which may lead to insecure trading transactions and limited transparency. To address these challenges, this study proposes a blockchain-based Peer-to-Peer (P2P) energy trading system that uses smart contracts for secure and automated transactions between participants. In this system, the blockchain ensures tamper-proof records, while smart contracts automate key processes such as verifying energy availability, executing payments, and enforcing agreements by eliminating trusted intermediaries. Furthermore, we introduce a penalty mechanism to prevent fraudulent claims and ensure sellers meet their commitments. We evaluated the scalability, security, and economic feasibility of the proposed system for decentralized energy trading using the Ethereum local blockchain network.