Blockchain Enabled Reserved Pricing and Privacy Preserving Model for Peer-to-Peer Energy Trading in Smart Grid

Abstract

This paper presents a novel framework for privacy-preserving, fair, and efficient peer-to-peer (P2P) energy trading within smart grids. The proposed approach introduces an auction-based dynamic pricing mechanism combined with a proportional energy allocation policy to ensure balanced benefits for both buyers and sellers. The pricing model adapts in real-time based on supply-demand ratios to optimize costs and revenues while maintaining fairness. To safeguard sensitive user data, a blockchain-based decentralized transaction system (DTS) is developed using Ethereum smart contracts,MetaMask, and Ganache. This system enables secure energy transactions without compromising privacy. The model is validated with real and simulated datasets, demonstrating significant reductions in buyer energy bills by 12.7% compared to existing methods. The proposed solution effectively balances economic optimization with data privacy, making it a robust framework for future decentralized energy markets.