Honesty Verification Approach to Address Dishonest Bidding Behavior in Blockchain-Based P2P Electricity Trading

Abstract

In the backdrop of advancing communication technology and the adoption of decarbonization initiatives, peer-to-peer (P2P) electricity trading has evolved into a consequential avenue for the reliable utilization of clean energy resources. Most efforts have focused on the design of P2P distributed mechanisms to ensure that the security constraints of the grid can be adhered to. However, ensuring the assurance of the correct operation of the distributed mechanisms is also essential but has received less attention. A common assumption is that all participants in the P2P market are honest and make reasonable bids at market prices. Such an assumption could be risky because the P2P market clearing process relies on a coordination process of market participants and the clearing outcome of the P2P market is susceptible to manipulation by dishonest participants. In this work, we propose a new architecture for the P2P market by adding a verification layer based on zero-knowledge proof technology to identify dishonest bidding information of market participants without collecting their private cost information. In addition, we introduce an asynchronous market mechanism, which can greatly guide the P2P market clearing results in a dishonest environment to be close to the theoretical optimal results. Case studies demonstrate the advantages of our approach in resisting dishonesty, preserving privacy, and enhancing market robustness, which can help build a more credible and resilient P2P market environment.