Blockchain Trading of Tokenized Electricity Using Tranched Power Delivery Contracts

To elucidate the case for facilitating energy trading within peer-to-peer marketplaces, this paper proposes a new mechanism for forward selling renewable electricity generation. In this framework, a wind farm directly sells consumers a claim on their future generation in the form of a blockchain token. The realized generation then offsets the token holders’ electricity consumption in near real-time. Two ways of structuring forward delivery instruments are considered: an tranched system, where more senior token holders enjoy priority claims on generation, as compared against a pro-rata scheme, where the realized generation is equally apportioned between token holders. A notional market simulation is provided to explore how, for instance, consumers may exploit the flatter delivery profiles of more seniortranches to better schedule their responsive demands in the current energy transition context