Optimizing power system trading processes using smart contract algorithms

This study presents a distributed electricity trading system using smart contracts to improve transaction efficiency and reduce costs in power markets. Three trading models are analyzed: centralized trading, blockchain-based decentralized trading, and smart contract-driven automated trading. The advantages and challenges of each model are examined, focusing on factors like node inclusion time, transaction costs, and price stability. The results show that the smart contract-driven model outperforms the others by increasing market efficiency, lowering transaction costs, and reducing price fluctuations. Through simulations and real-world analysis, this study provides support for using blockchain technology in power markets and offers practical advice for improving electricity trading systems. The findings suggest that the proposed system could greatly enhance transparency, efficiency, and cost-effectiveness in distributed energy markets, even in uncertain market conditions.

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Publication Details

Journal
Energy Informatics
Published
2024-12-30
DOI
https://doi.org/10.1186/s42162-024-00457-6
Citations
5
Primary Topic
Smart Grid Energy Management
Type
article
Field-Weighted Citation Impact
1.04
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article

Optimizing power system trading processes using smart contract algorithms

Xumin Liu, Ding Li, Chong Shao, Xiaoting Chen
5 citations
Energy Informatics
Smart Grid Energy Management
1.04
article

Optimizing power system trading processes using smart contract algorithms

Xumin Liu, Ding Li, Chong Shao, Xiaoting Chen
article en
5 citations

Abstract

This study presents a distributed electricity trading system using smart contracts to improve transaction efficiency and reduce costs in power markets. Three trading models are analyzed: centralized trading, blockchain-based decentralized trading, and smart contract-driven automated trading. The advantages and challenges of each model are examined, focusing on factors like node inclusion time, transaction costs, and price stability. The results show that the smart contract-driven model outperforms the others by increasing market efficiency, lowering transaction costs, and reducing price fluctuations. Through simulations and real-world analysis, this study provides support for using blockchain technology in power markets and offers practical advice for improving electricity trading systems. The findings suggest that the proposed system could greatly enhance transparency, efficiency, and cost-effectiveness in distributed energy markets, even in uncertain market conditions.

Energy InformaticsVol. 7(1)
OriginWater (China) (CN)
Openalex Percentile: Top 22%
Smart Grid Energy Management
1.04
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Optimizing power system trading processes using smart contract algorithms — Xumin Liu, Ding Li, et al. · Energy Informatics (2024) | TGRS Research Map | TGRS