Defining Peer-to-Peer Energy Trading, Community Self-Consumption and Transactive Energy Models: Concept Definition Paper

46 Pages Posted: 14 Sep 2022

See all articles by Nicole Watson

Nicole Watson

University College London - UCL Energy Institute

Anna Gorbatcheva

University College London - UCL Energy Institute

Alexandra Schneiders

Energy Institute, University College London; University College London - UCL Energy Institute

David Shipworth

University College London - UCL Energy Institute

Michael J. Fell

University College London - UCL Energy Institute

Date Written: September 2, 2022

Abstract

Peer-to-peer energy trading (P2P), transactive energy (TE) and community/collective self-consumption (CSC) models are increasingly viewed as solutions for integrating decentralised energy resources into the electricity grid and creating value propositions for harnessing flexibility from privately or community owned energy assets. Despite the industry, policy, and academic attention P2P, TE and CSC models have attracted, the field lacks a unified definition of this class of models. This is challenging for research, regulation, and scaling up of P2P, TE, and CSC pilots. This paper addresses this need by presenting sets of characteristics which define this class of models and distinguish P2P, TE, and CSC from one another. These defining characteristics were developed through a series of expert group interviews with regulators, industry, and academics across 13 countries, as well as a systematic and targeted literature review of 137 papers. Findings from both analyses identified the following characteristics as distinguishing the class of models encompassing P2P/TE/CSC from traditional energy markets: They are sub-markets that operate within or alongside traditional energy markets. They involve a form of energy trading or sharing; rely on some form of automation of transactions; are characterised by their promotion and support of the local generation and consumption of energy; encompass both geographically-bounded trading and non-geographically bounded trading; and involve trading with or without intermediaries, with price negotiation mechanisms that reflect the aims of the market. The paper also presents sets of characteristics which differentiate P2P, TE, and CSC from one another, along with a simple tool for determining which of the three models a pilot is most similar to. Findings from this analysis can support development of a shared understanding of this class of models and their distinguishing features, across multiple disciplinary perspectives and applications.

Keywords: Peer-to-peer energy trading, community self-consumption, collective self-consumption, transactive energy, energy trading, smart grid, local energy market, prosumer

JEL Classification: Q40

Suggested Citation

Watson, Nicole and Gorbatcheva, Anna and Schneiders, Alexandra and Shipworth, David and Fell, Michael, Defining Peer-to-Peer Energy Trading, Community Self-Consumption and Transactive Energy Models: Concept Definition Paper (September 2, 2022). Available at SSRN: https://ssrn.com/abstract=4207445 or http://dx.doi.org/10.2139/ssrn.4207445

Nicole Watson (Contact Author)

University College London - UCL Energy Institute ( email )

London, WC1H 0NN
United Kingdom

Anna Gorbatcheva

University College London - UCL Energy Institute ( email )

London, WC1H 0NN
United Kingdom

Alexandra Schneiders

Energy Institute, University College London ( email )

London, WC1H 0NN
United Kingdom

University College London - UCL Energy Institute ( email )

London, WC1H 0NN
United Kingdom

David Shipworth

University College London - UCL Energy Institute ( email )

London, WC1H 0NN
United Kingdom

Michael Fell

University College London - UCL Energy Institute

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