IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v270y2020ics0306261920305730.html
   My bibliography  Save this article

User behavior in a real-world peer-to-peer electricity market

Author

Listed:
  • Ableitner, Liliane
  • Tiefenbeck, Verena
  • Meeuw, Arne
  • Wörner, Anselma
  • Fleisch, Elgar
  • Wortmann, Felix

Abstract

Peer-to-peer (P2P) energy markets are a widely discussed approach toward a sustainable energy supply that allows private owners of distributed energy resources (e.g., solar panels) and consuming households to trade energy directly without intermediaries. P2P energy markets are expected to contribute to a green, local, and fair energy system in the future. The approach implies a paradigm shift regarding the role of citizens who evolve from passive consumers into active market participants. While first existing research primarily focused on the technical feasibility of such scenarios, end users and their role in P2P markets have received little attention. The present article studies the behavior of 35 households and two commercial entities in Switzerland's first real-world P2P energy market. In this unique real-world setting, based on a mixed methods approach, we developed and deployed a web application and empirically studied interaction, acceptance, and participation in electricity pricing in this P2P energy market, using data from system logs, surveys, and interviews. The findings are threefold. First, the P2P energy market was well received among its users, indicated by comparably high and stable usage activity of the web application throughout the study (4.5 months). Second, users in the sample are heterogeneous; based on their engagement with the web application and their stated preferences, they can be categorized into those who want to actively set prices (30%); those who prefer automated prices determined by an information system (35%); and non-users/non-respondents to surveys (35%). Third, an analysis of interviews with nine households suggests that P2P energy markets may increase the salience of renewable energies and may promote load-shifting activities. Thus, the article provides empirical insights about the user behavior of households and their future role in decentralized energy scenarios.

Suggested Citation

  • Ableitner, Liliane & Tiefenbeck, Verena & Meeuw, Arne & Wörner, Anselma & Fleisch, Elgar & Wortmann, Felix, 2020. "User behavior in a real-world peer-to-peer electricity market," Applied Energy, Elsevier, vol. 270(C).
  • Handle: RePEc:eee:appene:v:270:y:2020:i:c:s0306261920305730
    DOI: 10.1016/j.apenergy.2020.115061
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261920305730
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2020.115061?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Raluca Dragusanu & Daniele Giovannucci & Nathan Nunn, 2014. "The Economics of Fair Trade," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 217-236, Summer.
    2. McKenna, Eoghan & Pless, Jacquelyn & Darby, Sarah J., 2018. "Solar photovoltaic self-consumption in the UK residential sector: New estimates from a smart grid demonstration project," Energy Policy, Elsevier, vol. 118(C), pages 482-491.
    3. Buchanan, Kathryn & Russo, Riccardo & Anderson, Ben, 2014. "Feeding back about eco-feedback: How do consumers use and respond to energy monitors?," Energy Policy, Elsevier, vol. 73(C), pages 138-146.
    4. Khosrowpour, Ardalan & Xie, Yimeng & Taylor, John E. & Hong, Yili, 2016. "One size does not fit all: Establishing the need for targeted eco-feedback," Applied Energy, Elsevier, vol. 184(C), pages 523-530.
    5. Kavlak, Goksin & McNerney, James & Trancik, Jessika E., 2018. "Evaluating the causes of cost reduction in photovoltaic modules," Energy Policy, Elsevier, vol. 123(C), pages 700-710.
    6. Hargreaves, Tom & Nye, Michael & Burgess, Jacquelin, 2013. "Keeping energy visible? Exploring how householders interact with feedback from smart energy monitors in the longer term," Energy Policy, Elsevier, vol. 52(C), pages 126-134.
    7. Stuart Capstick & Lorraine Whitmarsh & Wouter Poortinga & Nick Pidgeon & Paul Upham, 2015. "International trends in public perceptions of climate change over the past quarter century," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 6(1), pages 35-61, January.
    8. Schleicher-Tappeser, Ruggero, 2012. "How renewables will change electricity markets in the next five years," Energy Policy, Elsevier, vol. 48(C), pages 64-75.
    9. Kirchhoff, Hannes & Strunz, Kai, 2019. "Key drivers for successful development of peer-to-peer microgrids for swarm electrification," Applied Energy, Elsevier, vol. 244(C), pages 46-62.
    10. Palm, Jenny, 2018. "Household installation of solar panels – Motives and barriers in a 10-year perspective," Energy Policy, Elsevier, vol. 113(C), pages 1-8.
    11. Rosen, Christiane & Madlener, Reinhard, 2012. "Auction Design for Local Reserve Energy Markets," FCN Working Papers 7/2012, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised Mar 2013.
    12. Juho Hamari & Mimmi Sjöklint & Antti Ukkonen, 2016. "The sharing economy: Why people participate in collaborative consumption," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 67(9), pages 2047-2059, September.
    13. Schopfer, S. & Tiefenbeck, V. & Staake, T., 2018. "Economic assessment of photovoltaic battery systems based on household load profiles," Applied Energy, Elsevier, vol. 223(C), pages 229-248.
    14. Sousa, Tiago & Soares, Tiago & Pinson, Pierre & Moret, Fabio & Baroche, Thomas & Sorin, Etienne, 2019. "Peer-to-peer and community-based markets: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 367-378.
    15. Tushar, Wayes & Saha, Tapan Kumar & Yuen, Chau & Azim, M. Imran & Morstyn, Thomas & Poor, H. Vincent & Niyato, Dustin & Bean, Richard, 2020. "A coalition formation game framework for peer-to-peer energy trading," Applied Energy, Elsevier, vol. 261(C).
    16. Tabi, Andrea & Hille, Stefanie Lena & Wüstenhagen, Rolf, 2014. "What makes people seal the green power deal? — Customer segmentation based on choice experiment in Germany," Ecological Economics, Elsevier, vol. 107(C), pages 206-215.
    17. Helen Goworek, 2011. "Social and environmental sustainability in the clothing industry: a case study of a fair trade retailer," Social Responsibility Journal, Emerald Group Publishing, vol. 7(2), pages 74-86, February.
    18. Thomas Morstyn & Niall Farrell & Sarah J. Darby & Malcolm D. McCulloch, 2018. "Using peer-to-peer energy-trading platforms to incentivize prosumers to form federated power plants," Nature Energy, Nature, vol. 3(2), pages 94-101, February.
    19. Barbour, Edward & Parra, David & Awwad, Zeyad & González, Marta C., 2018. "Community energy storage: A smart choice for the smart grid?," Applied Energy, Elsevier, vol. 212(C), pages 489-497.
    20. Lüth, Alexandra & Zepter, Jan Martin & Crespo del Granado, Pedro & Egging, Ruud, 2018. "Local electricity market designs for peer-to-peer trading: The role of battery flexibility," Applied Energy, Elsevier, vol. 229(C), pages 1233-1243.
    21. Zhang, Chenghua & Wu, Jianzhong & Zhou, Yue & Cheng, Meng & Long, Chao, 2018. "Peer-to-Peer energy trading in a Microgrid," Applied Energy, Elsevier, vol. 220(C), pages 1-12.
    22. Stuart Capstick & Lorraine Whitmarsh & Wouter Poortinga & Nick Pidgeon & Paul Upham, 2015. "International trends in public perceptions of climate change over the past quarter century," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 6(4), pages 435-435, July.
    23. Dragusanu, Raluca & Giovannucci, Daniele & Nunn, Nathan, 2014. "The Economics of Fair Trade," Scholarly Articles 33077828, Harvard University Department of Economics.
    24. Lombardi, P. & Schwabe, F., 2017. "Sharing economy as a new business model for energy storage systems," Applied Energy, Elsevier, vol. 188(C), pages 485-496.
    25. Mengelkamp, Esther & Gärttner, Johannes & Rock, Kerstin & Kessler, Scott & Orsini, Lawrence & Weinhardt, Christof, 2018. "Designing microgrid energy markets," Applied Energy, Elsevier, vol. 210(C), pages 870-880.
    26. Koirala, Binod Prasad & van Oost, Ellen & van der Windt, Henny, 2018. "Community energy storage: A responsible innovation towards a sustainable energy system?," Applied Energy, Elsevier, vol. 231(C), pages 570-585.
    27. Yael Parag & Benjamin K. Sovacool, 2016. "Electricity market design for the prosumer era," Nature Energy, Nature, vol. 1(4), pages 1-6, April.
    28. Wuyang Hu & Marvin T. Batte & Timothy Woods & Stan Ernst, 2012. "Consumer preferences for local production and other value-added label claims for a processed food product," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(3), pages 489-510, July.
    29. Helen Goworek, 2011. "Social and environmental sustainability in the clothing industry: a case study of a fair trade retailer," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 7(1), pages 74-86, March.
    30. Bell, Keith & Gill, Simon, 2018. "Delivering a highly distributed electricity system: Technical, regulatory and policy challenges," Energy Policy, Elsevier, vol. 113(C), pages 765-777.
    31. Ecker, Franz & Spada, Hans & Hahnel, Ulf J.J., 2018. "Independence without control: Autarky outperforms autonomy benefits in the adoption of private energy storage systems," Energy Policy, Elsevier, vol. 122(C), pages 214-228.
    32. Tushar, Wayes & Saha, Tapan Kumar & Yuen, Chau & Morstyn, Thomas & McCulloch, Malcolm D. & Poor, H. Vincent & Wood, Kristin L., 2019. "A motivational game-theoretic approach for peer-to-peer energy trading in the smart grid," Applied Energy, Elsevier, vol. 243(C), pages 10-20.
    33. Pyrgou, Andri & Kylili, Angeliki & Fokaides, Paris A., 2016. "The future of the Feed-in Tariff (FiT) scheme in Europe: The case of photovoltaics," Energy Policy, Elsevier, vol. 95(C), pages 94-102.
    34. Andoni, Merlinda & Robu, Valentin & Flynn, David & Abram, Simone & Geach, Dale & Jenkins, David & McCallum, Peter & Peacock, Andrew, 2019. "Blockchain technology in the energy sector: A systematic review of challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 143-174.
    35. Hahnel, Ulf J.J. & Herberz, Mario & Pena-Bello, Alejandro & Parra, David & Brosch, Tobias, 2020. "Becoming prosumer: Revealing trading preferences and decision-making strategies in peer-to-peer energy communities," Energy Policy, Elsevier, vol. 137(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
    2. Zheng, Boshen & Wei, Wei & Chen, Yue & Wu, Qiuwei & Mei, Shengwei, 2022. "A peer-to-peer energy trading market embedded with residential shared energy storage units," Applied Energy, Elsevier, vol. 308(C).
    3. Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    4. Zhou, Yue & Wu, Jianzhong & Song, Guanyu & Long, Chao, 2020. "Framework design and optimal bidding strategy for ancillary service provision from a peer-to-peer energy trading community," Applied Energy, Elsevier, vol. 278(C).
    5. Javier Parra-Domínguez & Esteban Sánchez & Ángel Ordóñez, 2023. "The Prosumer: A Systematic Review of the New Paradigm in Energy and Sustainable Development," Sustainability, MDPI, vol. 15(13), pages 1-44, July.
    6. Seyedhossein, Seyed Saeed & Moeini-Aghtaie, Moein, 2022. "Risk management framework of peer-to-peer electricity markets," Energy, Elsevier, vol. 261(PB).
    7. Karami, Mahdi & Madlener, Reinhard, 2022. "Business models for peer-to-peer energy trading in Germany based on households’ beliefs and preferences," Applied Energy, Elsevier, vol. 306(PB).
    8. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    9. Meritxell Domènech Monfort & César De Jesús & Natapon Wanapinit & Niklas Hartmann, 2022. "A Review of Peer-to-Peer Energy Trading with Standard Terminology Proposal and a Techno-Economic Characterisation Matrix," Energies, MDPI, vol. 15(23), pages 1-29, November.
    10. Hahnel, Ulf J.J. & Herberz, Mario & Pena-Bello, Alejandro & Parra, David & Brosch, Tobias, 2020. "Becoming prosumer: Revealing trading preferences and decision-making strategies in peer-to-peer energy communities," Energy Policy, Elsevier, vol. 137(C).
    11. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
    12. Soto, Esteban A. & Bosman, Lisa B. & Wollega, Ebisa & Leon-Salas, Walter D., 2021. "Peer-to-peer energy trading: A review of the literature," Applied Energy, Elsevier, vol. 283(C).
    13. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    14. Guerrero, Jaysson & Gebbran, Daniel & Mhanna, Sleiman & Chapman, Archie C. & Verbič, Gregor, 2020. "Towards a transactive energy system for integration of distributed energy resources: Home energy management, distributed optimal power flow, and peer-to-peer energy trading," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    15. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    16. Gržanić, M. & Capuder, T. & Zhang, N. & Huang, W., 2022. "Prosumers as active market participants: A systematic review of evolution of opportunities, models and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    17. Kobashi, Takuro & Yoshida, Takahiro & Yamagata, Yoshiki & Naito, Katsuhiko & Pfenninger, Stefan & Say, Kelvin & Takeda, Yasuhiro & Ahl, Amanda & Yarime, Masaru & Hara, Keishiro, 2020. "On the potential of “Photovoltaics + Electric vehicles” for deep decarbonization of Kyoto’s power systems: Techno-economic-social considerations," Applied Energy, Elsevier, vol. 275(C).
    18. Alexandra Lüth & Jens Weibezahn & Jan Martin Zepter, 2020. "On Distributional Effects in Local Electricity Market Designs—Evidence from a German Case Study," Energies, MDPI, vol. 13(8), pages 1-26, April.
    19. Wolsink, Maarten, 2020. "Distributed energy systems as common goods: Socio-political acceptance of renewables in intelligent microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    20. Esmat, Ayman & de Vos, Martijn & Ghiassi-Farrokhfal, Yashar & Palensky, Peter & Epema, Dick, 2021. "A novel decentralized platform for peer-to-peer energy trading market with blockchain technology," Applied Energy, Elsevier, vol. 282(PA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:270:y:2020:i:c:s0306261920305730. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.