Assessment of Peer-to-Peer Trading Benefits
4 Pages Posted: 10 Jul 2024
Date Written: June 07, 2024
Abstract
A Peer-to-peer (P2P) electricity trading model can enable customers to support each other with potentially significant economic benefits, yields technical benefits to reduce losses/congestion, and presents a greater opportunity to maximize variable renewable development. This study uses a two-stage optimization model to generate supply curves for individual customers, followed by an optimization by the P2P operator to maximize the savings. The model for individual customers can include the solar/battery investment decisions that each customer may make to develop a customer level ‘supply curve’ which in turn can inform the P2P trades. The methodology therefore links P2P trades with investments and capture the benefits such trades may entail from prosumers building solar/battery at a greater scale rather than matching solely their own load. The paper illustrates the methodology using a simple set of examples.
Keywords: Electricity market, P2P Trading, Linear programming
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