Double Auction Strategies for Peer-to-Peer Energy Trading in Smart Grids: A Game Theoretic and Blockchain Approach

The concept of using blockchain technology for peer-to-peer energy trading (P2PET) in smart grids, particularly employing a double auction-based game theoretic method, is a fascinating application of both blockchain and economic principles. This paper deals with a blockchain-enabled framework for P2PET in a smart grid by using a double auction-based game theory approach. The proposed permissioned blockchain network was developed using Hyperledger Fabric, Minifab and designed by configuring the spec.yaml file. Three smart contracts, or Chaincode namely Double Auction Order, CreateP2PEnergy, and Matching, have been written using Golang and deployed into the blockchain network, thereby creating automatic energy trading transactions between energy producers and consumers. The client communication, such as consumer queries, user input, and producer trading concepts, was designed using the Postman API. Additionally, the double auction framework’s performance has been measured by Hyperledger Caliper. Analysis shows that when 1000 transactions were initiated in each round by clients using Hyperledger Caliper and REST API services, the Proof of Elapsed Time (PoET) mechanism successfully processed 946 transactions, in contrast to the 627 transactions managed by Proof of Work (PoW). The outcomes from multiple rounds of testing underscore the enhanced performance of this framework. In summary, the combination of blockchain technology, P2P energy trading, smart grids, and game theory offers a promising approach to revolutionizing the energy sector. By decentralizing energy trading, empowering consumers, and leveraging market mechanisms, this approach has the potential to enhance efficiency, promote renewable energy adoption, and foster a more sustainable energy ecosystem.