A MODEL FOR SAFEGUARDING SECURITY AND PRIVACY IN PEER-TO-PEER ENERGY TRADING

Abstract

Peer-to-peer (P2P) energy trading has emerged as a decentralized approach that enables prosumers to sell surplus electricity directly to consumers, bypassing intermediaries and fostering affordability and efficiency. However, the widespread adoption of P2P systems is hindered by critical challenges of security, privacy, trust, and regulatory uncertainty. This study aims to develop a blockchain-based model that safeguards security and privacy in P2P energy trading. The objectives include analyzing cyber threats and data breaches, exploring blockchain’s role in enhancing transparency and trust, proposing privacy-preserving mechanisms, and evaluating the model using the Sepolia testnet. A mixed-methods methodology comprising literature review, stakeholder engagement, and system modeling was employed, focusing on Adamawa State, Nigeria. The proposed model integrates blockchain, cryptography, and role-based access to ensure secure authentication, encrypted transactions, and privacy-preserving data exchange. Findings reveal that the model enhances trust, reduces vulnerabilities to cyber threats, and improves operational efficiency compared to centralized systems. It also highlights the importance of localized regulatory frameworks to support adoption in developing nations. The study concludes that blockchain-enabled P2P trading can transform energy distribution if backed by robust policies, privacy mechanisms, and scalability measures, and recommends integration with smart grids and regulatory reforms for large-scale deployment.