Blockchain-Based Peer-to-Peer Energy Trading using IoT devices

Abstract

Increased penetration of Renewable Energy Sources(RES) and ever expanding global energy demands push forward the need of efficient utilization of RES by incorporating the prosumers (who are able to inject produced renewable energy) into the energy infrastructure.Moreover, there is emerging demand of the prosumers to participate in the electricity market and monetise their contributions.In order to facilitate these demands, the traditional centralised architectures are no longer viable therefore a decentralised transactive energy system enabling peer to peer energy trading, should be adopted.In this context, Blockchain based decentralised ledger technology emerges as the most viable solution which offers peer to peer energy trading platform providing a unique distributed local energy market model(LEM) for beneficial energy exchanges among participants which represents evolution for future smart grids.This thesis provides comprehensive review of the fundamental characteristics of the blockchain technology and its promising solutions for the energy industry.P2P energy trading, one of the use case of blockchain in energy sector has been focused and explored by thoroughly reviewing various initiatives, research and pilot projects that are currently working in that area.Moreover potential challenges pertaining to this blockchain based application are also evaluated.Based on the extensive research and literature review, a simple model of blockchain based peer to peer energy trade using IoT devices has been developed.Hence, this thesis provides all the necessary technical details and steps required to build the simple model of blockchain application for energy transactions.