Energy Trading on a Peer-to-Peer Basis between Virtual Power Plants Using Decentralized Finance Instruments

Over time, distribution systems have begun to include increased distributed energy resources (DERs) due the advancement of auxiliary power electronics, information and communication technologies (ICT), cost reductions. Electric vehicles (EVs) will undoubtedly join community alongside DERs, transfers from grids vice versa become more extensive in future. Virtual plants (VPPs) also play a key role integrating these participating wholesale markets. Energy trading on peer-to-peer (P2P) basis is promising business model for transactive that aids balancing local supply demand. Moreover, market scheme between VPPs can help DER owners make profit while reducing renewable waste. For this purpose, an inter-VPP P2P proposed. The utilizes cutting-edge Avalanche blockchain platform, developed scratch with decentralized finance (DeFi), applications (DApps), Web3 workflows mind. scalable has faster transaction finality than its layer-1 predecessors. It provides interoperability abilities among other common networks, facilitating different blockchain-based VPPs. merits DeFi contribute significantly workflow type scenario, as price mechanism be determined using open market-like instruments. A detailed case study was used examine effectiveness proposed flow, important conclusions were drawn.