Peer-to-Peer Energy Trading in the Real World: Market Design and Evaluation of the User Value Proposition

Wörner, Anselma; Ableitner, Liliane; Meeuw, Arne; Wortmann, Felix; Tiefenbeck, Verena

doi:10.3929/ethz-b-000395174

Cited by 4 publications

(3 citation statements)

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“…In contrast to own-economic utility, (1 − θ i ) represents a consumer's level of "alternative" utility preference; it represents a user's "willingness to pay" for LEM-sourced energy supply. Consistent with previous experimental works which evaluate the preferences and motivations of potential LEM users [6,7,9,22], this "alternative" value preference repre-sents the value that a consumer derives from local energy purchase due to environmental, socio-economic, or other motivations. Under the assumption that LEM energy is fully carbon-neutral, and sourced directly from local households with ecologically sustainable siting for RERs, LEM energy purchases are well-aligned with these value preferences.…”

Section: Consumer Agent Modelingsupporting

confidence: 59%

“…The LEM represents a critical vector of engagement between DES and the surrounding community, and a growing number of experimental works suggest that the socio-economic impacts of LEM operation are a strong factor in participation motivations for expected users [6][7][8][9]. Overall, the socio-economic impacts of LEM mechanisms on local households can be well-expected to impact community and user engagement with the platform.…”

Section: Introductionmentioning

confidence: 99%

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Simulation Analysis of a Double Auction-Based Local Energy Market in Socio-Economic Context

et al. 2022

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Local energy markets (LEMs) use online platforms and smart grid technologies to incentivize and coordinate a local supply of spatially-distributed renewable energy resources, which may not be directly controllable by power system operators. Socio-economic values are increasingly noted as prominent motivations for expected LEM users, but socio-economic aspects of user decision-making or market outcomes are not considered in current LEM mechanism design analyses. Here, agent-based simulation is used to analyze expected socio-economic outcomes from LEM operation under a double-sided auction with uniform pricing. The environment is modeled as a virtual LEM platform, operating independently from the underlying power grid. Socio-economic market inputs are produced by income-preference heterogeneous agents, and market outcomes are evaluated by two key socio-economic metrics: energy affordability, and market access. When LEM prices are not restricted to a common range considered by all agents (e.g., between external retail market prices), access disparities may arise; LEM price restriction addresses consumer disparities, but energy affordability gaps are expected to remain. The magnitude of affordability gaps is notably reduced, and bill assistance programs may eliminate remaining gaps, but a mechanism that efficiently realizes socio-economic standards for energy affordability may also reduce expected LEM operation costs. Remaining research gaps are noted, and LEM support for equitable and sustainable energy infrastructure is emphasized.

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Section: Consumer Agent Modelingsupporting

confidence: 59%

Section: Introductionmentioning

confidence: 99%

Simulation Analysis of a Double Auction-Based Local Energy Market in Socio-Economic Context

et al. 2022

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“…The results differed for an all-Germany and a regional sample (Allgäu), and except for a slight willingness to pay more for regional electricity in the regional sample, there was no indication that localness was viewed as a premium characteristic for which participants would actually pay more. Wörner et al [17] worked with 31 participants in a real P2P trading scheme, exploring actual setting of buy and sell prices. In a pre-survey, around half the participants suggested they would be prepared to pay a premium for renewable or local generation.…”

Section: Willingness To Share Energy In Prosumer-centred Modelsmentioning

confidence: 99%

Pricing decisions in peer-to-peer and prosumer-centred electricity markets: Experimental analysis in Germany and the United Kingdom

Hahnel¹,

Fell²

2021

Preprint

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Prosumer-centred electricity market models such as peer-to-peer communities can enable optimized supply and demand of locally generated electricity as well as an active participation of citizens in the energy transition. An important element of active participation is the improved ability of community members to identify and choose who they transact with in a much more granular way than is usual. Despite this key novelty and the social core of prosumer-centred markets, little is known about how citizens would trade with different actors involved in the system. Here, we report a preregistered cross-national experiment in which we investigated individual trading preferences in a peer-to-peer community, including a variety of private and non-private trading actors. Our data from the United Kingdom (n=441) and Germany (n=440) shows that set buying and selling prices strongly vary, pointing to three systematically different trading strategies that individuals apply as a function of involved trading actor. Findings moreover reveal that trading decisions are determined by individuals’ political orientation, place attachment, and climate change beliefs as well as individual differences in trust in the involved trading actor. Finally, our results illustrate high consistency in trading preferences across nations. However, nation-level differences emerged when decisions were made publicly visible, emphasising the need to consider context-effects in peer-to-peer system design. Our results have implications for the development of prosumer-centred energy models and the design of interventions to increase citizen participation across national contexts.

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Peer-to-peer electricity trading and the sharing economy: social, markets and regulatory perspectives

Schneiders

Fell

Nolden

2022

Energy Sources, Part B: Economics, Planning, and Policy

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Peer-to-Peer Energy Trading in the Real World: Market Design and Evaluation of the User Value Proposition

Cited by 4 publications

References 0 publications

Simulation Analysis of a Double Auction-Based Local Energy Market in Socio-Economic Context

Simulation Analysis of a Double Auction-Based Local Energy Market in Socio-Economic Context

Pricing decisions in peer-to-peer and prosumer-centred electricity markets: Experimental analysis in Germany and the United Kingdom

Peer-to-peer electricity trading and the sharing economy: social, markets and regulatory perspectives

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