Blockchain-based Efficient Energy Trading Scheme for Smart-Grid Systems

Bidirectional flow of power has opened up numerous opportunities for efficient usage of electricity. Vehicle to Grid (V2G) support has enabled easy transfer of power from the batteries of electric vehicles and then to the consumers itself. In order to make this practically applicable, a well designed system is needed for peer-to-peer (P2P) exchange of electricity for currency. Since it involves monetary transactions, it is expected to be highly secure and auditable by the government. The blockchain technology provides a transparent and secure means to achieve this. The distributed nature of blockchain provides resiliency to the system and also makes it highly available. It also provides a means of enabling government audits and immutability of data ensures full transparency. Motivated from these facts in this paper, we propose an auction model to maximize the utilization of power by trading energy for currency based on blockchain. It uses geolocation as the prime parameter of visibility between the consumers and aggregators of power and aims to create an ecosystem of energy transfer. It ensures direct transactions between suppliers and consumers of electricity within a specified safe range and government permissioned transfer for larger transactions.