Peer-to-Peer Energy Trading in Microgrids: Towards an Integrated Open and Distributed Market

Abstract

This work focuses on the electric power market, comparing the status quo with the recent trend towards the increase in distributed self-generation capabilities by prosumers. Starting from the existing tension between the intrinsically hierarchical current structure of the electricity distribution network and the substantially distributed and self-organising nature of the self-generation, we explore the limitations imposed by the current conditions. Initially, we introduce a potential multi-layered architecture for a Peer-to-Peer (P2P) energy market, discussing the fundamental aspects of local production and local consumption as part of a microgrid. Secondly, we analyse the consequent changes for the different users’ roles, also in connection with some incentive models connected with the decentralisation of the power production. To give a full picture to the reader, we also scrutinise relevant elements of energy trading, such as Smart Contract and grid stability. Thirdly, we present an example of a typical P2P settlement, showcasing the role of all the previously analysed aspects. To conclude, we performed a review of relevant activities in this domain, to showcase where existing projects are going and what are the most important themes covered. Being this a work in progress, many open questions are still on the table and will be addressed in the next stages of the research. Eventually, by providing a reference model as base for further discussions and improvements, we would like to engage ourselves in a dialog with the different users and the broad community, oriented towards a more fair and ecological-friendly solution for the electricity market of the future.