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Peer-to-Peer energy trading, independence aspirations and financial benefits among Nigerian households

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  • Adewole, Ayooluwa
  • Shipworth, Michelle
  • Lemaire, Xavier
  • Sanderson, Danielle

Abstract

This paper demonstrates how preferences for energy trading are influenced by autarky aspirations and possible financial benefits from energy trading in the form of lower energy expenses and additional income. It presents findings from a survey on preferences for energy trading on a community-based platform within a residential estate setting. The survey included a choice experiment of hypothetical home choices with the possibility of energy trading on a peer-to-peer (P2P) energy trading platform. It also distinguished between preferences for buying and selling. Participants were 649 residents of housing estates in Ibadan, a Nigerian city. According to our logistic regression analysis, willingness to participate in energy trading was influenced by autarky aspirations and financial benefits. The financial benefits that interest respondents include gaining additional income from P2P energy trading and reducing overall power expenses. The autarky benefit that drives interest in P2P is “reduced reliance” on the grid for electricity. Real estate developers could therefore capitalise on consumers' high levels of interest in the benefits of homes with P2P energy trading capabilities. Nigerian energy policymakers should put in place structures that support P2P because P2P energy trading can unlock the additional value of solar PV for residential consumers.

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  • Adewole, Ayooluwa & Shipworth, Michelle & Lemaire, Xavier & Sanderson, Danielle, 2023. "Peer-to-Peer energy trading, independence aspirations and financial benefits among Nigerian households," Energy Policy, Elsevier, vol. 174(C).
    • Handle: RePEc:eee:enepol:v:174:y:2023:i:c:s0301421523000277
    DOI: 10.1016/j.enpol.2023.113442
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