A Blockchain-Based Peer-to-Peer Trading Scheme Coupling Energy and Carbon Markets

Abstract

Climate change enforces the integration of distributed renewable energy sources and development of carbon price scheme. Whilst the energy is traded among distributed prosumers, the carbon responsibilities and corresponding allowances trading need to be transferred from large-scale energy suppliers to prosumers. During this transformation, the issues of energy imbalance, carbon reduction imbalance, and residential privacy leakage in centralised trading market present serious challenges. In this paper, we propose a fully decentralised blockchain-based peer-to-peer trading scheme coupling energy and carbon markets. We implement pay-to-public-key-hash with multiple signatures as a transaction standard to realise a more secure transaction and reduced storage burden of senders. A script is hashed during the wallet address generation for each new transaction to protect residential privacy. A novel carbon accounting method and corresponding incentive mechanism for carbon reduction are designed to evaluate emission behaviours of distributed prosumers. Case studies demonstrate that the proposed scheme leads a reduced costs and carbon emissions compared to centralised trading systems and existing blockchainbased trading schemes. Index Terms-blockchain, decentralized energy trading, low carbon, distributed energy sources, smart grids.

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