Blockchain-Based Peer-to-Peer Market for Energy Efficiency: A Novel Approach to Addressing Energy Imbalance in Iran

Articles in Press

Document Type : Original Article

Authors

1 College of Interdisciplinary Science and Technology, School of Energy and Sustainable Resources Engineering, University of Tehran

2 Faculty of Energy Engineering, Sharif University of Technology

10.22059/ses.2025.402927.1186

Abstract

Energy imbalance in Iran is rooted in rapidly growing consumption, heavy subsidy expenditures, and low efficiency in energy use. This imbalance represents one of the core challenges facing the national economy. International experience demonstrates that the third phase of the energy transition, along with its accompanying technological innovations, creates new opportunities to address this crisis. Within this framework, the concept of negawatt, defined as saved energy, plays a central role in shaping effective energy policies. Despite its importance, the lack of transparent mechanisms for measuring and trading this resource has prevented the development of competitive markets. This research introduces a framework based on blockchain technology and smart contracts to establish a peer-to-peer market for energy savings. Blockchain offers a reliable infrastructure for recording, settling, and exchanging negawatts among prosumers and consumers, thanks to its transparency, immutability, and ability to eliminate intermediaries. The proposed model is not limited to electricity and can be extended to other energy carriers such as natural gas and thermal energy. This extensibility enables the creation of decentralized multi-energy markets. While numerous studies have explored peer-to-peer markets for generated electricity, the domain of negawatt trading—especially in multi-carrier contexts—remains largely untapped and emerging. Findings from this study suggest that implementing such a market in Iran can improve transparency, reduce transaction costs, and offer a practical and cost-effective solution to mitigate energy imbalance. Moreover, it contributes to the realization of national sustainability goals.

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Main Subjects

Journal of sustainable Energy Systems

Articles in Press, Accepted Manuscript
Available Online from 10 December 2025

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