Feasibility Conditions for Demonstrative Peer-to-Peer Energy Market

Abstract

Distributed energy resources (DERs) play an indispensable role in mitigating global warming. The DERs require flexibility owing to the uncertainty of their power output when connected to the power grid. Recently, blockchain technology has actualized peer-to-peer (P2P) energy markets, promoting efficient and resilient flexibility in the power grid. This study aimed to extract insights about the contribution of the P2P energy markets to ensuring flexibility through analyzing transaction data. The data source was a demonstration project regarding the P2P energy markets conducted from 2019 to 2020 in Urawa-Misono District, Japan. The participants in the project were photovoltaic generators (PVGs), convenience stores (CSs), and residences equipped with battery storage as the only flexibility in the market. We quantitatively analyzed the prices and volumes ordered or transacted by each participant. The execution prices purchased by the residences were lower than those purchased by CSs; the differences between execution prices and order prices of the residences were narrower than those of PVGs and CSs; the lower state-of-charge (SoC) in the storage battery induced the higher purchasing prices. Thus, P2P energy markets, where holding flexibility resulted in the advantageous position, can promote installing flexibility through market mechanisms.

Keywords

• peer-to-peer energy trading
• distributed energy resources
• microgrid
• blockchain
• digital grid
• bidding strategy