Open AccessPeer‐to‐peer local electricity market platform pricing strategies for prosumers
Author(s) -
Teotia Falti,
Mathuria Parul,
Bhakar Rohit
Publication year - 2020
Publication title -
iet generation, transmission and distribution
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.92
H-Index - 110
eISSN - 1751-8695
pISSN - 1751-8687
DOI - 10.1049/iet-gtd.2019.0578
Subject(s) - news aggregator , prosumer , peer to peer , profitability index , distributed generation , sharing economy , business , computer science , environmental economics , economics , renewable energy , distributed computing , engineering , electrical engineering , finance , world wide web , operating system
Peer‐to‐peer (P2P) energy trading in the local electricity market (LEM) handles local energy trades among prosumers connected to the same distribution network. LEM is governed by prosumer's individual choices, self‐management and neighbourhood interactions. This study investigates the design of P2P LEM platform based on sharing economy for non‐professional prosumers and provides an exposition towards conceptual integration of LEM in the existing market. Design features of the P2P platform are based on two‐sided matching market theory. Here, P2P platform provider, i.e. an aggregator, operates a two‐sided market platform to match and set prices for prosumers having different willingness to buy/sell. The economic rationale of the P2P platform is highlighted by a variety of pricing strategies that the aggregator could offer, focusing on the benefits of aggregator and prosumers. As the total number of trades among peers is a crucial factor to determine aggregator profitability, pricing with a capability to induce prosumer surplus acts as an instrument for the aggregator to bind prosumers in P2P LEM.