Blockchain-based Local Electricity Market Solution

The growth of renewable energy sources usage at the local level contributes to decentralizing the power and energy systems. Nowadays, there is an increment of residential consumers becoming prosumers able to consume their generation or sell it to the public grid to reduce the electricity bill. This great penetration of electricity compromises the proper functioning of the system. Local electricity markets (LEM) are market platforms aimed at electricity end-users to be able to negotiate and transact it between them, thus becoming active players in the system, being a possible solution to balance local systems. Different approaches for LEM design and implementation are proposed in the literature, usually based on community markets and peer-to-peer. Despite their value, these solutions’ scalability is compromised as these are centralized solutions, and processing can become very heavy. In this sense, this work proposes a blockchain-based distributed and decentralized optimal solution for implementing LEM.