Abstract

The global shift towards renewable energy has created a pressing need for transparent, efficient, and decentralized energy trading systems. Traditional energy markets often face challenges such as high transaction costs, centralized control, lack of real-time verification, and barriers to peer-to-peer (P2P) energy exchange. Blockchain technology offers a promising solution by enabling secure, transparent, and tamper-proof energy trading platforms. In a blockchain-enabled renewable energy trading ecosystem, producers — ranging from large-scale solar farms to individual households with rooftop photovoltaic systems — can sell excess energy directly to consumers without relying solely on centralized utilities. Smart contracts automate the execution of trades, ensuring instant payment settlements and accurate metering of energy supplied. Integration with IoT-enabled smart meters allows real-time data recording of energy production and consumption, which is immutably stored on the blockchain ledger. This ensures trust, reduces disputes, and facilitates microtransactions, enabling energy trading at even the smallest scales. Blockchain platforms can also support tokenization of renewable energy credits (RECs), enabling global trade and compliance with sustainability regulations. Pilot projects in countries like Australia, Germany, and the United States have demonstrated the potential for blockchain-based trading to reduce costs, empower prosumers, and enhance grid resilience. However, challenges such as scalability, interoperability between platforms, regulatory compliance, and the energy consumption of blockchain itself remain critical concerns. Future research should focus on integrating energy-efficient consensus mechanisms, cross-border trading protocols, AI-based market prediction tools, and hybrid blockchain architectures to ensure sustainability and scalability. By leveraging blockchain technology, renewable energy trading can become more democratic, efficient, and environmentally sustainable, accelerating the global transition towards a decentralized green energy future.