Peer-to-Peer Trading and Energy Community in the Electricity Market : Analysing the Literature on Law and Regulation and Looking Ahead to Future Challenges

Blockchain-based peer-to-peer (P2P) energy trading is one of the most viable solutions to incentivize prosumers in distributed electricity markets. However, P2P energy trading through an open-end blockchain network is not conducive to mutual credit and the privacy protection of stakeholders. Therefore, improving the credibility of P2P energy trading is an urgent problem for distributed electricity markets. In this paper, a novel double-layer energy blockchain network is proposed that stores private trading data separately from publicly available information. This blockchain network is based on optimized cross-chain interoperability technology and fully considers the special attributes of energy trading. Firstly, an optimized ring mapping encryption algorithm is designed to resist malicious nodes. Secondly, a consensus verification subgroup is built according to contract performance, consensus participation and trading enthusiasm. This subgroup verifies the consensus information through the credit-threshold digital signature. Thirdly, an energy trading model is embedded in the blockchain network, featuring dynamic bidding and credit incentives. Finally, the Erenhot distributed electricity market in China is utilized for example analysis, which demonstrates the proposed method could improve the credibility of P2P trading and realize effective supervision.

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A Peer-to-Peer energy trading market model based on time-driven prospect theory in a smart and sustainable energy community

Sustainable Energy Grids and Networks ◽

10.1016/j.segan.2021.100542 ◽

2021 ◽

Vol 28 ◽

pp. 100542

Author(s):

Sobhan Dorahaki ◽

Masoud Rashidinejad ◽

Seyed Farshad Fatemi Ardestani ◽

Amir Abdollahi ◽

Mohammad Reza Salehizadeh

Keyword(s):

Prospect Theory ◽

Sustainable Energy ◽

Peer To Peer ◽

Market Model ◽

Energy Trading ◽

Model Based ◽

Trading Market ◽

Energy Community

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A Comparative Analysis of the Collective Dominance Definition in Ukrainian and European Law – the Electricity Market Case

Yearbook of Antitrust and Regulatory Studies ◽

10.7172/1689-9024.yars.2016.9.14.5 ◽

2016 ◽

Vol 9 (14) ◽

pp. 125-144

Author(s):

Ksenia Smyrnova

Keyword(s):

Electricity Market ◽

Mining Industry ◽

Policy Formation ◽

State Regulation ◽

Comparative Approach ◽

Pricing Policy ◽

Association Agreement ◽

Energy Community ◽

The Eu ◽

Collective Dominance

This paper follows a comparative approach to the analysis of collective dominance doctrine and practice in the EU and the enforcement practice in Ukraine. The aim of this paper is to assess the compliance of the Ukrainian competition authority’s (AMCU) analysis of the national electricity market with EU law enforcement practice. The latter arises from Ukraine’s wider duty to fulfil its international law obligation to comply with EU competition rules, based on Article 18 of the Treaty establishing the Energy Community also taking into account the interpretative criteria developed in EU case law (according to Article 94 of the Association Agreement between Ukraine and the EU). Article 255 of the Association Agreement, which clearly provides for the use of the principle of transparency, non-discrimination and neutrality when complying with the procedures of fairness, justice and the right of defence, also illustrates the necessity of carrying out research in this field. The paper examines notions such as: the dominance doctrine, market power definition, economic strength and collective dominance in the EU enforcement practice. Special attention is placed on enforcement practice in the electricity market. Since the scrutinised market inquiry constitutes the first investigation into the Ukrainian electricity market, there is no national practice on this issue yet. For this reason, the analysis follows a wide comparative approach towards the principles of collective dominance in the electricity market in Ukraine. The paper concludes that the AMCU’s approach to the regulation of the electricity market in Ukraine confirms the necessity to reform the system of state regulation in the wholesale electricity market and in the market of services for electricity transmission. In order to develop competition in the electricity market, it is also necessary to change the system for tariff and pricing policy formation on the part of the National Energy and Utilities Regulatory Commission of Ukraine and the Ministry of Energy and Coal-Mining Industry of Ukraine. Stressed is also the necessity to follow the approach and criteria of EU competition law with regard to the determination of market dominance. This requirement is stipulated by Ukraine’s international legal obligations arising from Articles 18 and 94 of the Treaty establishing the Energy Community and Article 255 of the Association Agreement between the EU and Ukraine.

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A New Vision on the Prosumers Energy Surplus Trading Considering Smart Peer-to-Peer Contracts

10.20944/preprints202001.0013.v1 ◽

2020 ◽

Author(s):

Bogdan-Constantin Neagu ◽

Ovidiu Ivanov ◽

Gheorghe Grigoras ◽

Mihai Gavrilas

Keyword(s):

Electricity Market ◽

Energy Demand ◽

Low Voltage ◽

Peer To Peer ◽

Local Network ◽

Financial Benefits ◽

Daily Energy ◽

New Vision ◽

The Government ◽

Energy Surplus

A growing number of households benefit from the government subsidies to install renewable generation facilities such as PV panels, used to gain independence from the grid and provide cheap energy. In the Romanian electricity market, these prosumers can sell their generation surplus only at regulated prices, back to the grid. A way to increase the number of prosumers is to allow them to make higher profit by selling this surplus back into the local network. This would also be an advantage for the consumers, who could pay less for electricity exempt from network tariffs and benefitting from lower prices resulting from the competition between prosumers. One way of enabling this type of trade is to use peer-to-peer contracts traded in local markets, run at microgrid (μG) level. This paper presents a new trading platform based on smart peer-to-peer (P2P) contracts for prosumers energy surplus trading in a real local microgrid. Several trading scenarios are proposed, which give the possibility to perform trading based on participants’ locations, instantaneous active power demand, maximum daily energy demand and the principle of first come first served implemented in an anonymous blockchain trading ledger. The developed scheme is tested on a low-voltage (LV) microgrid model to check its feasibility of deployment in a real network. A comparative analysis between the proposed scenarios, regarding traded quatities and financial benefits is performed.

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Novel economic modelling of a peer-to-peer electricity market with the inclusion of distributed energy storage—The possible case of a more robust and better electricity grid

The Electricity Journal ◽

10.1016/j.tej.2020.106709 ◽

2020 ◽

Vol 33 (2) ◽

pp. 106709

Author(s):

M. Yebiyo ◽

R.A. Mercado ◽

A. Gillich ◽

I. Chaer ◽

A.R. Day ◽

...

Keyword(s):

Energy Storage ◽

Electricity Market ◽

Peer To Peer ◽

Economic Modelling ◽

Distributed Energy ◽

Electricity Grid ◽

Distributed Energy Storage

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User behavior in a real-world peer-to-peer electricity market

Applied Energy ◽

10.1016/j.apenergy.2020.115061 ◽

2020 ◽

Vol 270 ◽

pp. 115061 ◽

Cited By ~ 3

Author(s):

Liliane Ableitner ◽

Verena Tiefenbeck ◽

Arne Meeuw ◽

Anselma Wörner ◽

Elgar Fleisch ◽

...

Keyword(s):

Real World ◽

Electricity Market ◽

User Behavior ◽

Peer To Peer

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On Distributional Effects in Local Electricity Market Designs—Evidence from a German Case Study

Energies ◽

10.3390/en13081993 ◽

2020 ◽

Vol 13 (8) ◽

pp. 1993 ◽

Cited By ~ 4

Author(s):

Alexandra Lüth ◽

Jens Weibezahn ◽

Jan Martin Zepter

Keyword(s):

Electricity Markets ◽

Electricity Market ◽

User Participation ◽

German Market ◽

Distributional Effects ◽

National Regulation ◽

Economic Framework ◽

Wide Range ◽

The One ◽

Energy Community

The European Commission’s call for energy communities has motivated academia to focus research on design and trading concepts of local electricity markets. The literature provides a wide range of conceptual ideas and analyses on the technical and economic framework of single market features such as peer-to-peer trading. The feasible, system-wide integration of energy communities into existing market structures requires, however, a set of legal adjustments to national regulation. In this paper, we test the implications of recently proposed market designs under the current rules in the context of the German market. The analysis is facilitated by a simplistic equilibrium model representing heterogeneous market participants in an energy community with their respective objectives. We find that, on the one hand, these proposed designs are financially unattractive to prosumers and consumers under the current regulatory framework. On the other hand, they even cause distributional effects within the community when local trade and self-consumption are exempt from taxes. To this end, we introduce a novel market design—Tech4all—that counterbalances these effects. With only few legal amendments, it allows for ownership and participation of renewable technologies for all community members independent of their property structure and affluence. Our presented analysis shows that this design has the potential to mitigate both distributional effects and the avoidance of system service charges, while simultaneously increasing end-user participation.

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Surviving the Energy Transition: Development of a Proposal for Evaluating Sustainable Business Models for Incumbents in Germany’s Electricity Market

Energies ◽

10.3390/en13030730 ◽

2020 ◽

Vol 13 (3) ◽

pp. 730 ◽

Cited By ~ 3

Author(s):

Oliver Wagner ◽

Thomas Adisorn ◽

Lena Tholen ◽

Dagmar Kiyar

Keyword(s):

Electricity Market ◽

Business Models ◽

Energy Transition ◽

Low Carbon ◽

Sustainable Business ◽

The Past ◽

Future Challenges ◽

New Business ◽

Sustainable Business Models ◽

Energy Companies

In the light of Germany’s chosen path towards the energy transition, the regulatory framework has changed considerably. New players have succeeded in entering the market, and renewable energies have become increasingly competitive. Greater electrification of the transport and heating sectors will be needed in the future to achieve national climate targets. Against this background, Germany’s big energy companies need to be sure that their sales will increase. However, they were unable to anticipate this development, and made strategic mistakes in the past. The development of sustainable business models in line with the energy transition failed to materialize. Now it is becoming increasingly clear that companies must create new business models to survive in the long term. These business models have to keep with the tradition, whilst meeting the needs of low-carbon power supplies. In this paper, we will examine the past and future challenges of the four energy companies and develop a proposal for evaluating sustainable business models. For this purpose, we use the multi-level perspective to categorize developments in the electricity market over the last 50 years, and then apply a multi-criteria analysis to derive five suitable business models from the results.

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