Energy Strategy Reviews (Jul 2024)
A blockchain-centric P2P trading framework incorporating carbon and energy trades
Abstract
The rise of prosumers – individuals who both produce and consume energy – presents a significant opportunity to reshape energy markets and achieve carbon neutrality. However, current energy trading models struggle to effectively track emissions and incentivize sustainable consumption behaviors. This study introduces a novel, blockchain-based peer-to-peer (P2P) platform for trading carbon allowances, designed to empower prosumers and revolutionize energy consumption patterns. Utilizing blockchain technology, the platform enables direct, transparent, and secure transactions between prosumers, creating a decentralized market where they can set their own prices for carbon allowances. This dynamic and competitive environment empowers prosumers to take control of their energy consumption and incentivizes the adoption of sustainable practices. The platform also incorporates a decentralized reward system targeting specific consumption habits, promoting behaviors that reduce carbon emissions. Empirical evidence and theoretical justification within the study highlight the platform’s potential to transform energy consumption patterns. The transparent and verifiable nature of blockchain technology addresses the limitations of existing centralized and aggregator-based trading methods. The proposed platform provides a robust framework for tracking carbon emissions, promoting sustainable consumption, and empowering prosumers to actively participate in the energy transition. This innovative solution addresses the challenges faced by prosumers in the energy market, paving the way for a more sustainable and equitable future.
