The rapid deployment of Electric Vehicles (EVs) and usage of renewable energy in day-to-day activities
of energy consumers have contributed toward the development of a greener smart community.
However, load balancing problems, security threats, privacy leakages, and lack of incentive
mechanisms remain unresolved in energy systems. Many approaches have been used in the literature
to solve the
... [Show full abstract] aforementioned challenges. However, these approaches are not sufficient to obtain
satisfactory results because of the resource and time-intensiveness of the primitive cryptographic
executions on the network devices. In most cases, energy trading systems manage transactions using
a centralized approach. This approach increases the risk of a single point of failure and overall
system cost. In this study, a blockchain based Local Energy Market (LEM) model considering
Home Energy Management (HEM) system and demurrage mechanism is proposed to tackle the
issue of a single point of failure in the energy trading system. It allows both the prosumers and
consumers to optimize their energy consumption and minimize electricity costs. This model also
allows end-users to shift their load to off-peak hours and to use cheap energy from the LEM. On
the other hand, users’ privacy leakages are still not solved in blockchain and can limit its usage
in many applications. This research also proposes a blockchain based distributed matching and
privacy-preservation model that uses a reputation system for both residential homes and EVs to
preserve users’ privacy and efficiently allocate energy. A starvation free energy allocation policy
is presented in the model. In addition, a charging forecasting scheme for EVs is introduced that
allows users to plan and manage their intermittent EVs’ charging. Partial homomorphic encryption
based on a reputation system is used to hide the EVs users’ whereabouts. Identity Based
Encryption (ID Based encryption) technique is incorporated in the model to preserve the users’
information privacy in the blockchain. Another bottleneck in the energy trading systems is to
perform efficient and privacy-preserving transactions. Therefore, an efficient and secure energy
trading model leveraging contract theory, consortium blockchain, and a reputation system is proposed.
Firstly, a secure energy trading mechanism based on consortium blockchain technology is
developed.
1
Then, an efficient contract theory based incentive mechanism considering the information
asymmetry scenario is introduced. Afterwards, a reputation system is integrated to improve
transaction confirmation latency and block creation. Next, a shortest route and distance algorithm
is implemented in order to reduce the traveling distance and energy consumption by the
EVs during energy trading. Cheating attacks launched by both buyers and sellers are also issues,
which are still not resolved. Thus, a mutual-verifiable fairness mechanism during energy trading
based on timed commitment is presented. Proof-of-Energy Reputation Generation (PoERG)
and Proof-of Energy Reputation Consumption (PoERC) consensus mechanisms are proposed
to solve the high computational cost and huge monetary investment issues created by Proof-of-
Work (PoW) and Proof-of-Stake (PoS) existing mechanisms. The mechanisms are developed
based on reputation where energy trading transactions are audited, validated, and added into
blocks of a blockchain. In order to protect the proposed model from impersonation attacks
and minimize malicious validators, a two-stage peer-to-peer secure energy trading model based
on blockchain is proposed. The proposed model has two layers: a mutual authentication process
layer, and a secure and privacy-preserving energy trading layer. Afterwards, an incentivepunishment
algorithm is introduced to motivate energy prosumers to contribute more energy in
the proposed model. Next, a dynamic contract theory based supply-demand ratio pricing scheme is proposed. The purpose of the proposed pricing scheme is to solve the issues associated with the existing pricing scheme. Also, to preserve the privacy of the actual energy consumption behavior of the trading participants.