Joint Operation Mechanism of Distributed Photovoltaic Power Generation Market and Carbon Market Based on Cross-Chain Trading Technology

Abstract

The rise of blockchain technology has injected new vitality into the energy market. At present, blockchain projects for distributed photovoltaic power generation and carbon trading are rapidly emerging, but due to the barrier of two markets and the independent operation of such projects in two chains, the two market values cannot be two-way circulation, which is not conducive to the expansion of power trading business and the scale of carbon market. This paper proposed a joint operation mechanism of cross-chain trading, combined distributed photovoltaic power generation market and the carbon market by the blockchain technology. The novelty is to construct two chains which includes the mainchain and sidechain that enables the two markets to share data and circulate value, and to design a two-way anchoring method that achieves equating between carbon trading and electricity trading by cryptocurrency. The simulation studies took the improved IEEE 33 system as an example to simulate transactions on the Ethereum platform, and technically verify the feasibility of cross-chain transactions in these two markets, and use Ether as the settlement currency.

Keywords

• Distributed photovoltaic power generation market
• carbon market
• cross-chain transaction
• blockchain