Blockchain-Based Renewable Energy Certificate Trade for Low-Carbon Community of Active Energy Agents

Shengcheng Fu, Yaxin Tan and Zhiyu Xu ()
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Shengcheng Fu: College of Electronics and Information Engineering, Tongji University, Shanghai 201804, China
Yaxin Tan: College of Electronics and Information Engineering, Tongji University, Shanghai 201804, China
Zhiyu Xu: College of Electronics and Information Engineering, Tongji University, Shanghai 201804, China

Sustainability, 2023, vol. 15, issue 23, 1-22

Abstract: The future distribution grid is a peer-to-peer (P2P) community formed by a large number of active energy agents (AEAs), and renewable energy certificate (REC) trading is an efficient way to realize a low-carbon AEA community. AEAs can trade not only electricity but also RECs among themselves to economically and efficiently meet the renewable portfolio standard (RPS) requirements. Aiming to lower the market barrier and increase the trading benefits for market participants, this paper proposes a blockchain-based renewable energy certificate (BCREC) that supports divisible and multiple transactions. The trade process includes four stages: setup, pre-transaction, transaction, and post-transaction. A scheme based on blockchain oracles and smart contracts is implemented to achieve decentralized BCREC issuance and transaction and to support a more flexible trading market. By exploring two typical market scenarios, we verify the advantages of BCREC trading and evaluate its impacts on AEA profits and market efficiency.

Keywords: active energy agent (AEA); renewable portfolio standard (RPS); blockchain-based renewable energy certificate (BCREC) trade; smart contract; peer-to-peer (P2P) transaction; blockchain oracle (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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