Bidirectional Privacy-Preserving Network- Constrained Peer-to-Peer Energy Trading Based on Secure Multiparty Computation and Blockchain

Abstract

The increasing integration of distributed energy resources has led to a network-constrained peer-to-peer (NCP2P) energy trading. Compared with conventional peer-to-peer trading without network constraints, NCP2P trading encounters challenges in protecting bidirectional privacy of both the prosumers and the grid operator when implementing market clearing and dispute resolution mechanisms. To deal with them, we apply a novel cryptographic technology called secure multiparty computation (SMPC). Firstly, a secure quadratic programming (QP) algorithm based on SMPC is designed to compute the NCP2P market clearing results with bidirectional privacy. Secondly, we propose dispute resolution mechanisms that employ blockchain to verify the correctness of claimed trading results of the two trading prosumers, and reconstruct the true trading bill based on Karush-Kuhn-Tucker conditions using SMPC when both prosumers claim wrong trading results. Finally, we design a bidirectional privacy-preserving NCP2P energy trading framework based on SMPC and blockchain. The case analysis shows that our proposed trading framework using the secure QP algorithm achieves optimal trading results, bidirectional privacy and low communication requirements for prosumers. The accuracy of the proposed dispute resolution mechanisms is also proven.