Peer-to-peer and blockchain technologies in power systems

The peer-to-peer (P2P) exchange of electrical energy is emerging as a promising strategy in energy management, enabling prosumers to trade electricity as goods and services, thereby generating economic benefits. It is anticipated that this approach will reduce reserve requirements, investments, and operational costs, while enhancing reliability and reducing peak demand on electrical grids. However, the implementation of P2P faces challenges in modeling transactions across the physical and virtual layers of the network. In this context, the virtual layer plays a critical role in providing a secure connection for participants to establish commercial parameters. Specialized literature highlights six fundamental components for P2P trading: platforms, market schemes, settlement algorithms, backup policies, networks, and Information and Communication Technology infrastructure. On the other hand, the lack of transparency in centralized energy systems poses security issues and hampers prosumers’ involvement in energy trading. This is where blockchain technology can be revolutionary. When applied in distributed generation (DG), it provides features such as immutability, security, and transparency that are pivotal in addressing these concerns. DG, encompassing renewable energy sources and electric vehicles, necessitates decentralized energy management, with blockchain facilitating secure transaction records and P2P trading. Compared to centralized systems, blockchain enables scalability, privacy, and low latency, thereby enhancing the security and transparency of energy trading. This review emphasizes the applicability of blockchain in DG, identifies limitations, and suggests future research directions to advance this sector. In summary, the integration of P2P and blockchain presents an innovative approach to enhancing efficiency and security in energy management.