Complementary business models for distribution system operator in a peer-to-peer electricity market

Abstract

As more distributed renewable energy resources are connected and peer-to-peer energy trading frameworks are forming, the traditional business model of the distribution system operator and energy retailers faces emerging load and price risks. In this paper, two sustainable and complementary business models for the DSO the new energy ecosystem are proposed: DSO as the platform operator of the P2P energy exchange framework (including flexibility market and electric vehicle market) and DSO as the service supplier. The two complementary business models exploit the competitive advantages of the DSO (infrastructure, expertise) and provide the DSO with sustainable income stream to complement the revenue reduction under intermittent scenario of demand and DRES production.

Effectiveness and Feasibility of Market Makers for P2P Electricity Trading

“…This type of electricity insurance has already been developed and commercialized. Finally, there are several studies on market makers in the context of enhancing liquidity and price stability for electricity markets [44][45][46][47][48], which are the focus of this study. For example, Bose et al (2014) [47] explore market makers' impacts on social welfare, residual social welfare, and consumer surplus at the general Nash equilibrium in a Cournot competition model.…”