Practical Considerations for Peer-to-Peer Energy Trading via Public Power Networks
Peer-to-peer (P2P) energy trading is an emerging electricity supply paradigm for integrating and utilizing a high penetration of distributed energy resources (DERs) in electric power systems. In P2P energy trading, prosumers and consumers trade and share energy with each other for mutual benefits as well as benefiting bulk power systems. Based on the experience of the “Local Virtual Private Network” project in Flintshire, Wales, UK, practical considerations for deploying P2P energy trading through public power networks are presented. Three major potential revenue streams are identified and analyzed, including reduced wholesale costs, reduced network costs and additional revenue from ancillary service provision. A comprehensive scheme consisting of technical solutions, commercial arrangements and regulatory reform is needed for deploying P2P energy trading in practice and reaping the value from all the streams.