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Peer-to-Peer Energy Trading

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Analytics for the Sharing Economy: Mathematics, Engineering and Business Perspectives

Abstract

This chapter presents peer-to-peer energy trading as an emerging case study for the sharing economy. Power systems are undergoing a fundamental transition due to the emergence of distribution network prosumers; proactive-consumers with renewable sources and flexible energy resources that actively manage their consumption, production and storage of energy. Peer-to-peer energy trading has been proposed as a new strategy for integrating prosumers into power system operations. The chapter presents an overview of different business models peer-to-peer energy trading can support, and reviews the mathematical frameworks that have been proposed for designing peer-to-peer and other prosumer-centric energy markets. Case studies are presented, showing how a peer-to-peer energy trading platform can create value for prosumers with a mix of PV generation sources, home battery systems and electric vehicles. Networked matching market theory is used to design a peer-to-peer negotiation mechanism through which the prosumers can agree on a set of mutually beneficial energy transactions none of them wish to renegotiate. Local demand constraints can be enforced by including the prosumers’ supplier in the peer-to-peer market.

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Authors and Affiliations

  1. Department of Engineering Science, the University of Oxford, Parks Road, Oxford, OX1 3PJ, UK

    Thomas Morstyn & Malcolm D. McCulloch

Authors
  1. Thomas Morstyn
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  2. Malcolm D. McCulloch
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Corresponding author

Correspondence to Thomas Morstyn .

Editor information

Editors and Affiliations

  1. DESTEC, University of Pisa, Pisa, Italy

    Emanuele Crisostomi

  2. Ivey Business School, University of Western Ontario, London, Canada

    Bissan Ghaddar

  3. Moovel Group GmbH, Stuttgart, Germany

    Florian Häusler

  4. Ivey Business School, London, ON, Canada

    Joe Naoum-Sawaya

  5. Department of Information & Electrical Engineering and Applied Mathematics, University of Salerno, Fisciano, Salerno, Italy

    Giovanni Russo

  6. Dyson School of Design Engineering, Imperial College London, London, UK

    Robert Shorten

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Morstyn, T., McCulloch, M.D. (2020). Peer-to-Peer Energy Trading. In: Crisostomi, E., Ghaddar, B., Häusler, F., Naoum-Sawaya, J., Russo, G., Shorten, R. (eds) Analytics for the Sharing Economy: Mathematics, Engineering and Business Perspectives. Springer, Cham. https://doi.org/10.1007/978-3-030-35032-1_16

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