Small Scale Energy Trading Using Smart Contracts

Abstract

Peer-to-peer (P2P) energy trading has emerged as an innovative solution to modern energy challenges by enabling decentralized electricity exchange among users. The Small-scale market allows prosumers to sell excess energy directly to consumers without relying on centralized authorities. Blockchain ensures transparency, security, and immutability of transactions, while smart contracts automate trading operations based on predefined conditions. A MATLAB-based simulation environment is developed to model energy generation, consumption, and transaction processes, along with a digital ledger for recording trades. The results of different case studies demonstrate efficient energy utilization, reduced transaction costs, and improved reliability. The system promotes renewable energy adoption and supports the transition toward decentralized smart grids. This work highlights the feasibility of integrating blockchain technology with energy systems for sustainable and scalable power trading solutions.