A new local energy market (LEM) model has been proposed to conduct peer-to-peer (P2P) energy trading between a number of participants using Ethereum-based blockchain technology. The proposed LEM mechanism is structured by considering relevant functional constraints, and energy trading is arranged between participants in the presence of other stakeholders such as the energy retailer and network operator. LEM participants' mutual bidding, intended P2P trading, local market settlement, and easy integration with retailer billing systems are executed to record LEM transactions and related data in an unchangeable and distributed fashion. A case study is performed in an Australian suburb with 300 LEM participants, and the simulation results are benchmarked with an existing business-as-usual (BAU) scenario. The simulation results show that the formulated LEM mechanism can significantly reduce the electricity cost of participants while improving their self-sufficiency, minimising power grid export and import, and retaining income margins for the energy retailer and network operator.

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Authors: Dr. Liaqat Ali, Dr. M. Imran Azim, Jan Peters, Nabin B. Ojha, Dr. Vivek Bhandari, Anand Menon, Vinod Tiwari, Dr. Jemma Green, Professor S. M. Muyeen, Professor M. G. Simoes

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