Enabling Localized Peer-to-Peer Electricity Trading Among Plug-in Hybrid Electric Vehicles Using Consortium Blockchains

TLDR

The authors propose a localized peer‑to‑peer electricity trading model for plug‑in hybrid electric vehicles that uses a consortium blockchain to enhance transaction security and privacy. Their PETCON system implements an iterative double‑auction mechanism on the blockchain to price and allocate electricity, incentivizing local PHEV discharging to balance demand without relying on a trusted third party. Security analysis confirms that PETCON improves transaction security and privacy, and simulations on a Texas map show the double auction maximizes social welfare while protecting PHEV privacy.

Abstract

We propose a localized peer-to-peer (P2P) electricity trading model for locally buying and selling electricity among plug-in hybrid electric vehicles (PHEVs) in smart grids. Unlike traditional schemes, which transport electricity over long distances and through complex electricity transportation meshes, our proposed model achieves demand response by providing incentives to discharging PHEVs to balance local electricity demand out of their own self-interests. However, since transaction security and privacy protection issues present serious challenges, we explore a promising consortium blockchain technology to improve transaction security without reliance on a trusted third party. A localized P2P Electricity Trading system with COnsortium blockchaiN (PETCON) method is proposed to illustrate detailed operations of localized P2P electricity trading. Moreover, the electricity pricing and the amount of traded electricity among PHEVs are solved by an iterative double auction mechanism to maximize social welfare in this electricity trading. Security analysis shows that our proposed PETCON improves transaction security and privacy protection. Numerical results based on a real map of Texas indicate that the double auction mechanism can achieve social welfare maximization while protecting privacy of the PHEVs.