Review of Peer-to-Peer Energy Trading: Advances and Challenges

Abstract

The power system is confronting progress from its conventional hierarchical structure to a more decentralized structure by presenting new management approaches such as peer-to-peer (P2P) energy trading. Direct energy trading between users is made possible by P2P energy trading, which supports bulk power infrastructure operations while supporting local power and energy balance. P2P energy trading is a promising approach to expanding the installation of renewable energy sources and achieving the system flexibility required for the shift to low-carbon energy. The grid is anticipated to gain from P2P energy trading by having lower reserve requirements, peak demand, and network losses. The energy network is covered first in this paper's description of these new P2P markets before the types of P2P energy trading, moving on to the market structure. The technologies and technical approaches behind P2P energy trading are covered. Then, P2P energy trading advancements in different systems are discussed. Finally, we identify challenges before making some concluding remarks.

Keywords: peer to peer energy trading, local energy markets, transactive energy, energy communities