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Blockchain Electricity Trading Under Demurrage

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journal contribution
posted on 17.01.2019, 14:41 by Paul CuffePaul Cuffe, Mel T. Devine
Letter in IEEE Transactions on Smart Grid

Abstract:

This letter proposes a novel demurrage mechanism for blockchain electricity marketplaces, whereby the redemptive value of energy-backed tokens declines with time. This mechanism is intended to reward organic price-responsive load shifting by incentivising the consumption of electricity when it is locally abundant. To demonstrate how such a demurrage mechanism might function in practice, this letter describes a mixed complementarity model of a notional token marketplace. These market simulations indicate that, in equilibrium and with rational actors, the demurrage mechanism creates price signals that temporally align the production and consumption of electricity.

Funding

SFI/15/SPP/E3125

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