Integrating Gen3 Blockchain Into a Transactive Energy Market for DERs Orchestration

Abstract

This paper presents the integration of third generation (Gen3) blockchain technology into a transactive energy market (TEM) for enabling secure and efficient peer-to-peer (P2P) energy trading among diverse participants, including prosumers with photovoltaic (PV) systems and battery energy storage systems (BESS), as well as electric vehicle (EV) owners. The primary motivation behind this work is to streamline transactive energy markets by reducing reliance on third-party intermediaries and enhancing energy self-sufficiency. The TEM utilizes blockchain's decentralized ledger for transparent transactions, with an advanced trading engine that matches participants' energy and price bids based on forecasted profiles and optimizes local energy use while minimizing costs. The major contributions of this study include: (1) the development of a scalable and efficient P2P trading framework leveraging Proof of Stake (POS) and Proof of History (POH) consensus mechanisms based on Gen3 blockchain, and (2) a comprehensive performance analysis resulting in considerable transaction time, throughput and cost reductions compared to traditional business-as-usual models. Numerical simulations reveal a 24% and 23% reduction in peak grid imports and exports, translating into financial and environmental benefits for all stakeholders, including prosumers, network operators, and retailers.