Blockchain-based peer-to-peer energy trading framework for the Malaysian electricity market

The integration of blockchain technology into the Malaysian electricity market has the potential to fundamentally transform conventional energy trading paradigms. This paper proposes a secure, decentralized, and transparent blockchain-based peer-to-peer (P2P) energy trading framework tailored to the regulatory, technical, and market conditions of Malaysia’s evolving energy landscape under MESI 2.0. Leveraging smart contracts and distributed ledger protocols, the proposed system enables prosumers and consumers to transact energy directly, bypassing centralized intermediaries while ensuring real-time validation, automated settlement, and auditable traceability of energy transactions. The framework is underpinned by a hybrid consensus model optimized for energy markets, ensuring low transaction latency and scalable throughput for local energy communities. The study incorporates simulation models integrating residential photovoltaic (PV) generation data, time-of-use tariffs, and grid constraints to assess trading behavior and economic viability. Results indicate that prosumers using the P2P platform can achieve up to 28.4% higher revenue compared to traditional Net Energy Metering (NEM) schemes, while consumers benefit from reduced electricity costs by 12.7% on average. Furthermore, the system enhances grid flexibility and resilience by promoting localized energy balancing and demand response capabilities. A policy and regulatory analysis reveals alignment opportunities between blockchain-based trading and Malaysia's National Energy Transition Roadmap (NETR), though challenges remain in digital infrastructure readiness, legal standardization of smart contracts, and market interoperability. The paper concludes by outlining a roadmap for pilot implementation, stakeholder roles, cybersecurity protocols, and grid-code-compliant data integration, establishing the proposed framework as a viable enabler of democratized, decarbonized, and decentralized energy systems in Malaysia.