Developing Peer-to-Peer (P2P) Energy Trading Model for Malaysia: A Review and Proposed Implementation

Abstract

A decade ago, Malaysia introduced the Renewable Energy Act 2011. This led to the RE proliferation, especially with the adoption of solar photovoltaics as an alternative energy source for prosumers to generate green energy and reduce their energy costs. Since then, the RE policies have evolved with the introduction of feed-in tariff (FiT) and various version of Net Energy Metering (NEM) schemes. Such initiatives may not be holistic enough to benefit all stakeholders; thus, Malaysia introduced its first pilot P2P energy trading in 2019. However, there was no significant progress to the P2P pilot thereafter, with a Go-to-Market plan. As such, this review proposes a model for P2P energy trading for Malaysia based on several key success factors including the market design, trading mechanism, physical and virtual infrastructure, policy and governance and social. Malaysia’s electricity market structure is also compared to South Korea, Germany, Thailand, United Kingdom, and Singapore (ranked in the top 20 Ease of Getting Electricity by World Bank in 2019) to understand the implication of P2P energy trading adoption. Apart from that, this paper also highlights the key technical and non-technical reviews of the P2P energy trading implementation.

Keywords

• Electricity market structure
• energy trading
• peer-to-peer
• trading mechanism