Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand

Abstract

Recent developments in disruptive technologies along with the cost reduction of photovoltaics have been transforming business models in the electricity sector worldwide. The rise of prosumers has led to a more decentralized and open local green energy market through the emergence of peer-to-peer (P2P) energy trading, where consumers and prosumers can buy or sell electricity through an online trading platform. P2P energy trading has the potential to make green energy more accessible at the local level, provide a customer choice that aligns with community values, and promote the use of renewable energy (RE) for local consumption. Although P2P energy trading has already been adopted in some countries, its implementation remains challenging in other countries, including Thailand. In this work, we investigated the drivers and challenges of implementing P2P energy trading in Thailand based on the perspectives of P2P energy trading pilot project developers participating in the regulatory sandbox program. A strategic framework was used to identify the respondents’ standpoints on the political, economic, social, technological, legal, and environmental (PESTLE) factors that can influence the implementation of P2P energy trading. This can help businesses, policymakers, and regulators better understand drivers and barriers of P2P energy trading, which is a potential local energy market. This paper also provides policy recommendations for regulatory changes for the future development of P2P energy trading, including opening a third-party access (TPA) regime, enabling a liberalized market in the electricity market, and integrating the role and responsibilities of the prosumer for P2P energy trading into existing law.

Peer-to-Peer Trade and the Sharing Economy at Distribution Level: A Review of the Literature

“…However, the path to widespread adoption of P2P energy trading is fraught with challenges, many of which are political in nature. Studies by Junlakarn et al; Soto et al, illuminate the institutional barriers that stand in the way of seamless implementation [38], [52]. These challenges are not merely technical but are deeply entangled with regulatory frameworks that vary across nations.…”

Fully Decentralized, Cost-Effective Energy Demand Response Management System with a Smart Contracts-Based Optimal Power Flow Solution for Smart Grids

“…B is used to calculate the DC-OPF. Note that all scalar elements of the diagonal matrix B ii , i ∈ [1, n] are calculated by the formula in Equation (6).…”

“…The current tremendous expansion of distributed energy sources and the democratization of electricity generation through conventional and renewable sources such as wind turbines, solar energy, and advances in energy storage capacity [1,2], combined with the advancement of digital communication and control technologies, have enabled the transition from traditional grid systems to what is known as a smart grid, in which traditional consumers have evolved into proactive prosumers that can join a grid branch of the larger distribution network and contribute to energy demand management within the grid they have joined, either with traditional fuel-based energy generators or renewable sources [3,4]. In addition, the integration of blockchain into the smart grid and the functionalities of smart contracts enabled the emergence of peer-to-peer energy trading [5,6], where prosumers can trade their energy generated and injected into the grid in a decentralized manner. It should be noted that the reduction of influence and control by a central authority is paramount in all blockchain-based applications [7].…”

Roles of the 2007 Energy Industry Act in Supporting Peer-To-Peer Electricity Trading in Thailand: Issues to be Addressed by the 2004 Electricity Law of Vietnam

“…Responding to a challenge posed by a centralized electricity system, it is reasonable to consider the possibility of local electricity users to be responsible for generating their own electricity or, at least, purchase locally-generated electricity. 24 One possible way forward is to permit local power users to generate electricity for their own consumption or to supply self-generated electricity to their neighbors. However, it must be noted that this permission is pushing the electricity market structure towards a more distributed system.…”