Abstract
The European Commission calls for more small-scale renewable energy producers to actively participate in the energy value chain. In this study, we model an illustrative peer-to-peer (P2P) market with tariffs based on the reservation prices of market participants under the German levy regime. The study is conducted by modeling representative residential buildings with home energy management systems, modulating heat pumps, and photovoltaics, in combination with electrical and thermal storage systems. The resulting mixed-integer linear program is solved over the course of a year, using a rolling horizon approach with a time resolution of one hour. By analyzing the cost- and discomfort-minimizing behavior of the market participants, we evaluate the current levy regime and propose two additional designs. We find that in the current case, a P2P market is not economically viable. Based on feed-in tariffs (FiT) and levies no agreeable market price can be found. With no FiT or reduced levies, all participants benefit from the P2P market. The market split—where each household sources their energy from—is altered only little by the specific details of the market design when staying in the agreeable price range. As prosumagers do not consume on the P2P market, they benefit only marginally from the reduced levies—consumers are most affected. Adjusting the regime could be a measure to rebalance the distribution of renewable energy benefits towards consumers in order to foster social cohesion. Our input data and the model written in the Julia JuMP programming language are available in an open-source format.
Highlights
Starting with the liberalization of the electricity markets, gradually a more and more competitive market environment was established
The challenge at hand is to transform a system formerly relying on large centralized power plants—whose economies of scale are increasingly challenged with grid parity of RES [4]—to a system based on distributed renewable energy sources
We propose six different market designs for an illustrative P2P market consisting of three user types: a prosumager, a prosumer, and a consumer
Summary
Starting with the liberalization of the electricity markets, gradually a more and more competitive market environment was established. A P2P platform incentivizes the cooperative integration of distributed energy resources and pro-active consumers in an approach compatible with the present system While the system operators had traditionally been incentivized to invest in long-term physical network reinforcement, a shift to more active management is needed [3] This might become easier with further advances in metering, control devices, information and communication technology, as well as distributed ledger technology, which will simplify metering and billing [5] and hopefully reduce transaction costs sufficiently. P2P solutions are suitable to address these issues when low economies of scale, demand variability and diversity, as well as the ability to efficiently match small-scale buyers and sellers, are given [3] This is increasingly the case in the electricity sector. Appendix A presents the nomenclature of the decision variables and parameters, as well as the technical specifications
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