Polygon-based Smart Contract for P2P Energy Trading in a Microgrid Environment with Six Participants

Abstract

Introduction: With the increasing adoption of solar photovoltaic, bioenergy, and wind energy in distributed networks, consumers are transforming into prosumers, utilizing renewable energy resources within distributed microgrid systems. In these environments, peer-to-peer (P2P) energy trading emerges as a highly promising energy management solution. Methods: This paper introduces a Polygon-based blockchain smart contract designed to execute trading and payment rules autonomously, significantly enhancing the security and fairness of energy trading compared to traditional database technologies. The smart contract consists of two core components: a bidding and settlement module and a payment module, both deployed on a Polygon-based test network, Cardona, to assess real-time interactions. Furthermore, to validate this model, simulations were conducted using realistic data on an Ethereum Virtual Machine (EVM) in a microgrid setting with six participants. Results: The results illustrate the model's potential to facilitate the integration of renewable energy within microgrids, thereby encouraging the adoption of distributed energy resources and supporting localized P2P energy trading. The proposed methodology shows that Polygon-based smart contracts with auction mechanisms can enable efficient, transparent, and automated P2P energy trading, enhancing grid stability in non-autonomous microgrids. However, the approach requires validation at larger scales to assess performance under real-world conditions . Conclusion: This approach offers a robust framework for designers aiming to build sustainable, decentralized energy markets.