Bridging theory and practice in peer-to-peer energy trading: market mechanisms and technological innovations
Date
2025-01-30
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Environmental Research: Infrastructure and Sustainability
Abstract
The article provides a synthesis of the literature on the peer-to-peer (P2P) energy trading paradigm. P2P energy trading is a prosumer business model and a transformative concept that allows prosumers to sell surplus generation to other prosumers and consumers within an energy community or microgrid. P2P energy trading is a novel concept to promote decentralization, decarbonization, democratization, digitalization, and enhancing energy resilience of the energy sector. The article covers different facets of P2P energy trading, including market designs, changing actor roles, pricing mechanisms, enabling technologies, and challenges. The article thus addresses emerging and complementary aspects not covered in prior literature reviews. As such, three market designs are discussed: centralized, decentralized, and distributed, and four pricing mechanisms, which are optimization, game theory, auction-based, and reinforcement learning. Enabling technologies discussed are Energy Internet, Internet of Things, Artificial intelligence, Blockchain, Communication networks, and battery flexibility. The paper discusses the challenges that the development and commercialization of the P2P energy trading faces—especially focusing on the social ontology of the concept—and provides research directions to amplify the scaling up of the technology.
Description
This article was originally published in Environmental Research: Infrastructure and Sustainability. The version of record is available at: https://doi.org/10.1088/2634-4505/adac8a.
Original content from this work may be used under the terms of the Creative Commons Attribution 4.0 license (https://creativecommons.org/licenses/by/4.0/). Any further distribution of this work must maintain attribution to the author(s) and the title of the work, journal citation and DOI.
© 2025 The Author(s). Published by IOP Publishing Ltd.
Keywords
peer-to-peer energy trading, review article, trading mechanisms, social sciences, enabling technologies
Citation
Raghoo, Pravesh, and Kalim Shah. “Bridging Theory and Practice in Peer-to-Peer Energy Trading: Market Mechanisms and Technological Innovations.” Environmental Research: Infrastructure and Sustainability 5, no. 1 (March 31, 2025): 012001. https://doi.org/10.1088/2634-4505/adac8a.