Abstract
Peer-to-peer (P2P) energy trading is an emerging energy supply paradigm where customers with distributed energy resources (DERs) are allowed to directly trade and share electricity with each other. P2P energy trading can facilitate local power and energy balance, thus being a potential way to manage the rapidly increasing number of DERs in net zero transition. It is of great importance to explore P2P energy trading via public power networks, to which most DERs are connected. Despite the extensive research on P2P energy trading, there has been little large-scale commercial deployment in practice across the world. In this paper, the practical challenges of conducting P2P energy trading via public power networks are identified and presented, based on the analysis of a practical Local Virtual Private Networks (LVPNs) case in North Wales, UK. The ongoing efforts and emerging solutions to tackling the challenges are then summarized and critically reviewed. Finally, the way forward for facilitating P2P energy trading via public power networks is proposed.
Article PDF
References
Zhang C, Wu J, Zhou Y, et al. Peer-to-peer energy trading in a microgrid. Applied Energy, 2018, 220: 1–12
Zhou Y, Wu J, Long C. Evaluation of peer-to-peer energy sharing mechanisms based on a multiagent simulation framework. Applied Energy, 2018, 222: 993–1022
Morstyn T, Farrell N, Darby S J, et al. Using peer-to-peer energy-trading platforms to incentivize prosumers to form federated power plants. Nature Energy, 2018, 3(2): 94–101
Zhou Y, Wu J, Long C, et al. State-of-the-art analysis and perspectives for peer-to-peer energy trading. Engineering (Beijing), 2020, 6(7): 739–753
Cheng L F, Chen Y, Liu G Y. 2PnS-EG: A general two-population n-strategy evolutionary game for strategic long-term bidding in a deregulated market under different market clearing mechanisms. International Journal of Electrical Power & Energy Systems, 2022, 142(Part A): 108182
Chen Y, Wei W, Liu F, et al. Energy trading and market equilibrium in integrated heat-power distribution systems. IEEE Transactions on Smart Grid, 2019, 10(4): 4080–4094
Cheng L F, Yu T. A new generation of AI: A review and perspective on machine learning technologies applied to smart energy and electric power systems. International Journal of Energy Research, 2019, 43(6): 1928–1973
Cheng L F, Yu T. Smart dispatching for energy internet with complex cyber-physical-social systems: A parallel dispatch perspective. International Journal of Energy Research, 2019, 43(8): 3080–3133
Yan J, Yuen C, Saha T K, et al. Call for papers for: Special issue on ‘energy sharing in the peer-to-peer network–moving towards real implementation. Applied Energy, 2021-01-02, available at the Elsevier website
Ofgem. Breakdown of an electricity bill. 2021-01-07, available at the website of Ofgem
Pace A, Lord J, Edwards T, et al. A review of the embedded benefits accruing to distribution connected generation in GB. 2022-09-08, available at the website of theade
Ofgem. “Ogeem’s future insights series: Local energy in a transforming energy system. 2021-04-11, available at the website of Ofgem
Ofgem. Current arrangements. Access and forward-looking charges significant code review—Summer 2019 working paper. 2021-01-07, available at the website of Ofgem
Pace A, Lord J, Edwards T, et al. A review of the embedded benefits accruing to distribution connected generation in GB. 2021-01-07, available at the website of theade
Scottish & Southern Electricity Networks. How are DUoS charges calculated?—Overview. 2021-01-07, available at the website of Scottish & Southern Electricity Networks
Ofgem. Links with procurement of flexibility–discussion note. Access and forward-looking charges significant code review–Summer 2019 working paper. 2021-01-17, available at the website of Ofgem
Nepal R, Foster J. Electricity networks privatization in Australia: An overview of the debate. Economic Analysis and Policy, 2015, 48: 12–24
Castaneda M, Jimenez M, Zapata S, et al. Myths and facts of the utility death spiral. Energy Policy, 2017, 110: 105–116
Ofgem. Illustrative examples note. Access and forward-looking charges significant code review–Summer 2019 working paper. 2021-01-21, available at the website of Ofgem
Ofgem. Electricity network access and forward-looking charging review: Open letter on our shortlisted policy options. 2021-01-24, available at the website of Ofgem
Ofgem. Options for reform of access rights for distribution and transmission—Discussion note. 2021-01-24, available at the website of Ofgem
Ofgem. Access and forward-looking charges significant code review: Consultation on updates to minded to positions and response to June 2021 Consultation feedback. 2022-09-08, available at the website of Ofgem
Energy Networks Association (ENA). Open networks. 2022-09-08, available at the website of ENA
Tushar W, Saha T K, Yuen C, et al. Peer-to-peer trading in electricity networks: An overview. IEEE Transactions on Smart Grid, 2020, 11(4): 3185–3200
Guerrero J, Chapman A C, Verbič G. Decentralized P2P energy trading under network constraints in a low-voltage network. IEEE Transactions on Smart Grid, 2019, 10(5): 5163–5173
Tushar W, Saha T K, Yuen C, et al. Grid influenced peer-to-peer energy trading. IEEE Transactions on Smart Grid, 2020, 11(2): 1407–1418
Khorasany M, Mishra Y, Ledwich G. A decentralized bilateral energy trading system for peer-to-peer electricity markets. IEEE Transactions on Industrial Electronics, 2020, 67(6): 4646–4657
Liu H, Li J, Ge S, et al. Distributed day-ahead peer-to-peer trading for multi-microgrid systems in active distribution networks. IEEE Access: Practical Innovations, Open Solutions, 2020, 8: 66961–66976
Paudel A, Khorasany M, Gooi H B. Decentralized local energy trading in microgrids with voltage management. IEEE Transactions on Industrial Informatics, 2021, 17(2): 1111–1121
Yan M, Shahidehpour M, Paaso A, et al. Distribution network-constrained optimization of peer-to-peer transactive energy trading among multi-microgrids. IEEE Transactions on Smart Grid, 2021, 12(2): 1033–1047
Nikolaidis A I, Charalambous C A, Mancarella P. A graph-based loss allocation framework for transactive energy markets in unbalanced radial distribution networks. IEEE Transactions on Power Systems, 2019, 34(5): 4109–4118
Bhand I, Debbarma S. Transaction-tracing based loss allocation in distribution networks under TE system. IEEE Systems Journal, 2021, 15(4): 5664–5673
Nunna H K, Sesetti A, Rathore A K, et al. Multiagent-based energy trading platform for energy storage systems in Distribution systems with interconnected microgrids. IEEE Transactions on Industry Applications, 2020, 56(3): 3207–3217
Vega-Fuentes E, Yang J, Lou C, et al. Transaction-oriented dynamic power flow tracing for distribution networks—Definition and implementation in GIS environment. IEEE Transactions on Smart Grid, 2021, 12(2): 1303–1313
Jogunola O, Wang W, Adebisi B. Prosumers matching and least-cost energy path optimization for peer-to-peer energy trading. IEEE Access: Practical Innovations, Open Solutions, 2020, 8: 95266–95277
Azizi A, Aminifar F, Moeini-Aghtaie M, et al. Transactive energy market mechanism with loss implication. IEEE Transactions on Smart Grid, 2021, 12(2): 1215–1223
Wang S, Taha A F, Wang J, et al. Energy crowdsourcing and peer-to-peer energy trading in blockchain-enabled smart grids. IEEE Transactions on Systems, Man, and Cybernetics, 2019, 49(8): 1612–1623
Morstyn T, Teytelboym A, Hepburn C, et al. Integrating P2P energy trading with probabilistic distribution locational marginal pricing. IEEE Transactions on Smart Grid, 2020, 11(4): 3095–3106
Zhang K, Troitzsch S, Hanif S, et al. Coordinated market design for peer-to-peer energy trade and ancillary services in distribution grids. IEEE Transactions on Smart Grid, 2020, 11(4): 2929–2941
Kim J, Dvorkin Y A. P2P-dominant distribution system architecture. IEEE Transactions on Power Systems, 2020, 35(4): 2716–2725
Paudel A, Sampath L P M I, Yang J, et al. Peer-to-peer energy trading in smart grid considering power losses and network fees. IEEE Transactions on Smart Grid, 2020, 11(6): 4727–4737
Baroche T, Pinson P, Latimier R L, et al. Exogenous cost allocation in peer-to-peer electricity markets. IEEE Transactions on Power Systems, 2019, 34(4): 2553–2564
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made.
The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder.
To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.
About this article
Cite this article
Zhou, Y., Wu, J. & Gan, W. P2P energy trading via public power networks: Practical challenges, emerging solutions, and the way forward. Front. Energy 17, 189–197 (2023). https://doi.org/10.1007/s11708-023-0873-9
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11708-023-0873-9