Peer-to-peer (P2P) energy-trading has emerged as a promising mechanism for decentralized electricity markets, but its practical deployment is often limited by the difficulty of accounting for physical network constraints and transmission losses in real time. This paper presents a decentralized P2P energy trading mechanism that incorporates network constraints and transmission losses directly into the market-clearing process. The framework combines Power Transfer Distribution Factors (PTDFs) for pre-trade feasibility validation with an Enhanced Least Squares Method (ELSM) for loss estimation, enabling loss-aware settlement without computationally intensive and redundant AC power flow calculations. The mechanism is implemented on Hyperledger Fabric using Attribute-Based Access Control, Access Control Lists and Private Data Collections to ensure privacy and auditability. Numerical studies on a 3-bus and the IEEE 39-bus system show that the proposed approach closely reproduces AC Optimal Power Flow dispatch and cost outcomes, while significantly improving simplified DC-based loss models. The results demonstrate that physically feasible and economically efficient decentralized trading can be achieved in a permissioned blockchain environment.
Koutantos et al. (Tue,) studied this question.