Decentralized Energy Exchange: A Blockchain-Based Smart contract Pricing Model for Sustainable Distributed Energy Markets

Abstract

This paper presents a blockchain-based smart pricing framework designed to enhance traditional electricity markets by enabling decentralized, peer-to-peer (P2P) energy trading among distributed renewable energy producers and consumers. The proposed system, implemented on the Ethereum blockchain, introduces SmartPricingExchange. The system employs energy credits managed through an internal ledger to facilitate transparent and automated transactions. By removing conventional intermediaries such as DISCOMs, the framework promotes market liberalization, improves price transparency, and incentivizes small-scale producers through fair and trustless settlements. Deployed on the Ethereum Sepolia testnet using Remix IDE and MetaMask, the model demonstrates the feasibility of decentralized energy exchange and offers a scalable path for the modernization of future power markets.