2021/10/11 by Wayes Tushar, Chau Yuen, Tushar, Wayes +15
Computer Science · Decision Sciences · Engineering · #Auction Theory and Applications #Computer Science and Game Theory (cs.GT) #Computers and Society (cs.CY) #Electric Power System Optimization #FOS: Computer and information sciences #FOS: Electrical engineering #Smart Grid Energy Management #Systems and Control (eess.SY) #cs.CY #cs.GT #cs.SY #eess.SY #electronic engineering #information engineering
paper · pdf · doi:10.48550/arxiv.2110.09303
4 figures, 2 tables, accepted for publication in iScience (Cell Press)
openalex publication_date 2021/10/11 · arxiv created 2021/10/12 · arxiv updated 2021/10/19 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Despite extensive research in the past five years and several successfully completed and on-going pilot projects, regulators are still reluctant to implement peer-to-peer trading at a large-scale in today's electricity market. The reason could partly be attributed to the perceived disadvantage of current market participants like retailers due to their exclusion from market participation - a fundamental property of decentralised peer-to-peer trading. As a consequence, recently, there has been growing pressure from energy service providers in favour of retailers' participation in peer-to-peer trading. However, the role of retailers in the peer-to-peer market is yet to be established as no existing study has challenged this fundamental circumspection of decentralized trading. In this context, this perspective takes the first step to discuss the feasibility of retailers' involvement in the peer-to-peer market. In doing so, we identify key characteristics of retail-based and peer-to-peer electricity markets and discuss our viewpoint on how to incorporate a single retailer in a peer-to-peer market without compromising the fundamental decision-making characteristics of both markets. Finally, we give an example of a hypothetical business model to demonstrate how a retailer can be a part of a peer-to-peer market with a promise of collective benefits for the participants.