IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i5p1220-d1350655.html
   My bibliography  Save this article

Economic Pricing in Peer-to-Peer Electrical Trading for a Sustainable Electricity Supply Chain Industry in Thailand

Author

Listed:
  • Adisorn Leelasantitham

    (Technology of Information System Management Division, Faculty of Engineering, Mahidol University, 25/25 Phutthamonthon Sai 4 Road, Salaya, Phutthamonthon, Nakhon Pathom 73170, Thailand)

  • Thammavich Wongsamerchue

    (Technology of Information System Management Division, Faculty of Engineering, Mahidol University, 25/25 Phutthamonthon Sai 4 Road, Salaya, Phutthamonthon, Nakhon Pathom 73170, Thailand)

  • Yod Sukamongkol

    (Technology of Information System Management Division, Faculty of Engineering, Mahidol University, 25/25 Phutthamonthon Sai 4 Road, Salaya, Phutthamonthon, Nakhon Pathom 73170, Thailand)

Abstract

The state-owned power Electricity Generating Authority of Thailand (EGAT), a monopoly market in charge of producing, distributing, and wholesaling power, is the focal point of Thailand’s electricity market. Although the government has encouraged people to install on-grid solar panels to sell electricity as producers and retail consumers, the price mechanism, i.e., purchasing price and selling prices, is still unilaterally determined by the government. Therefore, we are interested in studying the case where blockchain can be used as a free trading platform. Without involving buying or selling from the government, this research presents a model of fully traded price mechanisms. Based on the study results of the double auction system, data on buying and selling prices of electrical energy in Thailand were used as the initial data for the electricity peer-to-peer free-trading model. Then, information was obtained to analyze the trading price trends by using the law of demand and supply in addition to the principle of the bipartite graph. The price trend results agree well with those of price equilibrium equations. Therefore, we firmly believe that the model we offer can be traded in a closed system of free-trade platforms. In addition, the players in the system can help to determine the price trend that will occur according to various parameters and will cause true fairness in the sustainable electricity supply chain industry in Thailand.

Suggested Citation

  • Adisorn Leelasantitham & Thammavich Wongsamerchue & Yod Sukamongkol, 2024. "Economic Pricing in Peer-to-Peer Electrical Trading for a Sustainable Electricity Supply Chain Industry in Thailand," Energies, MDPI, vol. 17(5), pages 1-19, March.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:5:p:1220-:d:1350655
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/5/1220/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/5/1220/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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).
    2. Han, Dong & Zhang, Chengzhenghao & Ping, Jian & Yan, Zheng, 2020. "Smart contract architecture for decentralized energy trading and management based on blockchains," Energy, Elsevier, vol. 199(C).
    3. Xu, Shuang & Zhao, Yong & Li, Yuanzheng & Zhou, Yue, 2021. "An iterative uniform-price auction mechanism for peer-to-peer energy trading in a community microgrid," Applied Energy, Elsevier, vol. 298(C).
    4. Hu, Qian & Zhu, Ziqing & Bu, Siqi & Wing Chan, Ka & Li, Fangxing, 2021. "A multi-market nanogrid P2P energy and ancillary service trading paradigm: Mechanisms and implementations," Applied Energy, Elsevier, vol. 293(C).
    5. Umar, Abdullah & Kumar, Deepak & Ghose, Tirthadip, 2022. "Blockchain-based decentralized energy intra-trading with battery storage flexibility in a community microgrid system," Applied Energy, Elsevier, vol. 322(C).
    6. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K., 2021. "Cooperative negawatt P2P energy trading for low-voltage distribution networks," Applied Energy, Elsevier, vol. 299(C).
    7. Ata Allah Taleizadeh & Aria Zaker Safaei & Arijit Bhattacharya & Alireza Amjadian, 2022. "Online peer-to-peer lending platform and supply chain finance decisions and strategies," Annals of Operations Research, Springer, vol. 315(1), pages 397-427, August.
    8. 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).
    9. Khorasany, Mohsen & Shokri Gazafroudi, Amin & Razzaghi, Reza & Morstyn, Thomas & Shafie-khah, Miadreza, 2022. "A framework for participation of prosumers in peer-to-peer energy trading and flexibility markets," Applied Energy, Elsevier, vol. 314(C).
    10. 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).
    11. Adamu Sani Yahaya & Nadeem Javaid & Fahad A. Alzahrani & Amjad Rehman & Ibrar Ullah & Affaf Shahid & Muhammad Shafiq, 2020. "Blockchain Based Sustainable Local Energy Trading Considering Home Energy Management and Demurrage Mechanism," Sustainability, MDPI, vol. 12(8), pages 1-28, April.
    12. Xiangxiang Zeng & Li Liu & Stephen Leung & Jiangze Du & Xun Wang & Tao Li, 2017. "A decision support model for investment on P2P lending platform," PLOS ONE, Public Library of Science, vol. 12(9), pages 1-18, September.
    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. 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).
    2. Arnob Das & Susmita Datta Peu & Md. Abdul Mannan Akanda & Abu Reza Md. Towfiqul Islam, 2023. "Peer-to-Peer Energy Trading Pricing Mechanisms: Towards a Comprehensive Analysis of Energy and Network Service Pricing (NSP) Mechanisms to Get Sustainable Enviro-Economical Energy Sector," Energies, MDPI, vol. 16(5), pages 1-27, February.
    3. 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.
    4. Zhang, Bidan & Du, Yang & Chen, Xiaoyang & Lim, Eng Gee & Jiang, Lin & Yan, Ke, 2022. "A novel adaptive penalty mechanism for Peer-to-Peer energy trading," Applied Energy, Elsevier, vol. 327(C).
    5. Tsao, Yu-Chung & Thanh, Vo-Van, 2021. "Toward sustainable microgrids with blockchain technology-based peer-to-peer energy trading mechanism: A fuzzy meta-heuristic approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).
    6. Zheyuan Sun & Sara Tavakoli & Kaveh Khalilpour & Alexey Voinov & Jonathan Paul Marshall, 2024. "Barriers to Peer-to-Peer Energy Trading Networks: A Multi-Dimensional PESTLE Analysis," Sustainability, MDPI, vol. 16(4), pages 1-23, February.
    7. Gourisetti, Sri Nikhil Gupta & Sebastian-Cardenas, D. Jonathan & Bhattarai, Bishnu & Wang, Peng & Widergren, Steve & Borkum, Mark & Randall, Alysha, 2021. "Blockchain smart contract reference framework and program logic architecture for transactive energy systems," Applied Energy, Elsevier, vol. 304(C).
    8. Alessandra Chiarini & Lorenzo Compagnucci, 2022. "Blockchain, Data Protection and P2P Energy Trading: A Review on Legal and Economic Challenges," Sustainability, MDPI, vol. 14(23), pages 1-20, December.
    9. Helder Pereira & Bruno Ribeiro & Luis Gomes & Zita Vale, 2022. "Smart Grid Ecosystem Modeling Using a Novel Framework for Heterogenous Agent Communities," Sustainability, MDPI, vol. 14(23), pages 1-20, November.
    10. Uyikumhe Damisa & Nnamdi I. Nwulu & Pierluigi Siano, 2022. "Towards Blockchain-Based Energy Trading: A Smart Contract Implementation of Energy Double Auction and Spinning Reserve Trading," Energies, MDPI, vol. 15(11), pages 1-16, June.
    11. Boiarkin, Veniamin & Rajarajan, Muttukrishnan & Al-Zaili, Jafar & Asif, Waqar, 2023. "A novel dynamic pricing model for a microgrid of prosumers with photovoltaic systems," Applied Energy, Elsevier, vol. 342(C).
    12. Younes Zahraoui & Tarmo Korõtko & Argo Rosin & Hannes Agabus, 2023. "Market Mechanisms and Trading in Microgrid Local Electricity Markets: A Comprehensive Review," Energies, MDPI, vol. 16(5), pages 1-52, February.
    13. Maurizio Sibilla & Esra Kurul, 2023. "Towards Social Understanding of Energy Storage Systems—A Perspective," Energies, MDPI, vol. 16(19), pages 1-11, September.
    14. Kanakadhurga, Dharmaraj & Prabaharan, Natarajan, 2022. "Peer-to-Peer trading with Demand Response using proposed smart bidding strategy," Applied Energy, Elsevier, vol. 327(C).
    15. João Mello & Cristina de Lorenzo & Fco. Alberto Campos & José Villar, 2023. "Pricing and Simulating Energy Transactions in Energy Communities," Energies, MDPI, vol. 16(4), pages 1-22, February.
    16. Mehdinejad, Mehdi & Shayanfar, Heidarali & Mohammadi-Ivatloo, Behnam, 2022. "Decentralized blockchain-based peer-to-peer energy-backed token trading for active prosumers," Energy, Elsevier, vol. 244(PA).
    17. Yaçine Merrad & Mohamed Hadi Habaebi & Siti Fauziah Toha & Md. Rafiqul Islam & Teddy Surya Gunawan & Mokhtaria Mesri, 2022. "Fully Decentralized, Cost-Effective Energy Demand Response Management System with a Smart Contracts-Based Optimal Power Flow Solution for Smart Grids," Energies, MDPI, vol. 15(12), pages 1-27, June.
    18. Singh, Kamini & Gadh, Rajit & Singh, Anoop & Lal Dewangan, Chaman, 2022. "Design of an optimal P2P energy trading market model using bilevel stochastic optimization," Applied Energy, Elsevier, vol. 328(C).
    19. Spiliopoulos, Nikolas & Sarantakos, Ilias & Nikkhah, Saman & Gkizas, George & Giaouris, Damian & Taylor, Phil & Rajarathnam, Uma & Wade, Neal, 2022. "Peer-to-peer energy trading for improving economic and resilient operation of microgrids," Renewable Energy, Elsevier, vol. 199(C), pages 517-535.
    20. Luis Gomes & Hugo Morais & Calvin Gonçalves & Eduardo Gomes & Lucas Pereira & Zita Vale, 2022. "Impact of Forecasting Models Errors in a Peer-to-Peer Energy Sharing Market," Energies, MDPI, vol. 15(10), pages 1-18, May.

    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:gam:jeners:v:17:y:2024:i:5:p:1220-:d:1350655. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.