Blockchain-Based Peer-to-Peer Trading in a Liberalized Energy Market

Abstract

The Swiss energy market is transforming towards a decentralized and decarbonized future. The trend can be observed in the market and also on the political level, where changing requirements of the market participants are faced. The planned revision of the Swiss energy supply act effectuates a full market liberalization that flattens the way for market-based energy procurement and selling. The legal foundation is, in particular, also laid for P2P energy trading microgrids where households with solar photovoltaic panels can trade their excess energy within networks. With decentralization, also the need for secure and tamper-proof transaction mechanisms and market management tools increases. With no trusted third party between peers in a P2P trading network, transparency and data integrity hast to be ensured otherwise. Blockchain could provide solutions by enabling a tamper-proof, transparent and reliable mechanism without the necessity of a trusted third party. This thesis examines if Blockchain-based P2P energy trading offers a suitable business model for Switzerland’s energy market. After an extensive literature review investigated Blockchain applications in the energy sector, a PESTLE environmental analysis of the Swiss energy market explores the external factors influencing P2P energy trading....