Comparative techno-economic analysis of market models for peer-to-peer energy trading on a distributed platform

M. Galici, M. Troncia, M. Nour, J.P. Chaves, F. Pilo

Applied Energy Vol. 380, pp. 125005-1 - 125005-14

Summary:

Since the emergence of distributed energy resources, local electricity markets have garnered interest for energy sharing on a community scale through both centralized and distributed models, including innovative distributed platforms. Numerous studies and initiatives have demonstrated that local markets and peer-to-peer transactions can be effective for electricity networks under specific conditions. Amidst the growing exploration of local market models, there is a noticeable gap in quantitative techno-economic analyses comparing different auction mechanisms. This paper aims at filling this gap by representing a comparative analysis of the most commonly implemented double-sided market models for peer-to-peer transactions based on a distributed ledger implementation. The comparison is based on quantitative key performance indicators designed to assess the economic and technical performance of these market models, including technical constraints within the power system through a network constraints management market. According to the selected metrics, the simulation results reveal that no single model outperforms all others. The authors conclude that, under the tested application and assumed conditions, the distributed market using distributed ledger technology faces several challenges that hinder its efficient application to local energy trading.

Spanish layman's summary:

El artículo propone un análisis comparativo de los modelos de mercado de doble cara más comúnmente implementados para transacciones entre pares, basado en una implementación de plataforma distribuida. La evaluación tecnoeconómica se realiza utilizando métricas originales en términos de indicadores económicos, complejidad del mercado y efectividad en la gestión de congestión. El manuscrito aborda la brecha de investigación que actualmente existe en la literatura sobre la utilidad de los modelos de mercado de doble cara para mercados locales entre pares.

English layman's summary:

The paper proposes a comparative analysis of the most commonly implemented double sided market models for peer-to-peer transactions based on a distributed platform implementation. The techno-economic assessment is based on original metrics in terms of economic indicators, market complexity, and congestion management effectiveness. The manuscript covers the research gap that nowadays is present in the literature about the usefulness of the double-sided market models for peer-to-peer local markets.

Keywords: Peer-to-peer energy trading; Local electricity markets; Techno-economic analysis; Double auction models comparison

JCR Impact Factor and WoS quartile: 10,100 - Q1 (2023)

DOI reference: https://doi.org/10.1016/j.apenergy.2024.125005

Published on paper: February 2025.

Published on-line: December 2024.

Citation:
M. Galici, M. Troncia, M. Nour, J.P. Chaves, F. Pilo, Comparative techno-economic analysis of market models for peer-to-peer energy trading on a distributed platform. Applied Energy. Vol. 380, pp. 125005-1 - 125005-14, February 2025. [Online: December 2024]