A Blockchain-Enabled Decentralized Energy Trading Mechanism for Islanded Networked Microgrids

Tarek Medalel Masaud, Jonathan Warner, Ehab Fahmy El-Saadany

Research output: Contribution to journalArticlepeer-review

33 Scopus citations


Interconnected microgrids are becoming a building block in smart systems. Initiating secure and efficient energy trading mechanisms among networked microgrids for reliability and economic mutual benefits have become a crucial task. Recently, integrating blockchain technologies into the energy sector have gained significant amount of interest, e.g. transactive grid. This paper proposes a two-layer secured smart contract-based energy trading mechanism to allow microgrids to establish coalitions, adjust the electricity-trading price, and achieve transparent and decentralized secure transactions without intervention of a third trusted party. Since reliability benefits are main drivers of microgrids operation in islanded mode, a new decentralized smart contract based-energy trading model for islanded networked microgrids is proposed in the first layer with an objective to achieve demand generation balance. In the second layer, and to achieve a higher security, all executed contracts are verified and saved in a blockchain based on a new developed two-phase consensus method that utilizes practical Byzantine Fault Tolerance (pBFT), and a modified Proof of Stake (PoS). Simulations are conducted in Python environment to validate the proposed energy trading model.

Original languageBritish English
Article number9261445
Pages (from-to)211291-211302
Number of pages12
JournalIEEE Access
StatePublished - 2020


  • blockchain
  • energy trading
  • Networked microgrids
  • smart contracts


Dive into the research topics of 'A Blockchain-Enabled Decentralized Energy Trading Mechanism for Islanded Networked Microgrids'. Together they form a unique fingerprint.

Cite this