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Keep it green, simple and socially fair: a choice experiment on prosumers' preferences for peer to peer electricity trading in the Netherlands

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  • Elena Georgarakis
  • Thomas Bauwens
  • Anne-Marie Pronk
  • Tarek AlSkaif

Abstract

While the potential for peer-to-peer electricity trading, where households trade surplus electricity with peers in a local energy market, is rapidly growing, the drivers of participation in this trading scheme have been understudied so far. In particular, there is a dearth of research on the role of non-monetary incentives for trading surplus electricity, despite their potentially important role. This paper presents the first discrete choice experiment conducted with prosumers (i.e. proactive households actively managing their electricity production and consumption) in the Netherlands. Electricity trading preferences are analyzed regarding economic, environmental, social and technological parameters, based on survey data (N = 74). The dimensions most valued by prosumers are the environmental and, to a lesser extent, economic dimensions, highlighting the key motivating roles of environmental factors. Furthermore, a majority of prosumers stated they would provide surplus electricity for free or for non-monetary compensations, especially to energy-poor households. These observed trends were more pronounced among members of energy cooperatives. This suggests that peer-to-peer energy trading can advance a socially just energy transition. Regarding policy recommendations, these findings point to the need for communicating environmental and economic benefits when marketing P2P electricity trading platforms and for technical designs enabling effortless and customizable transactions

Suggested Citation

  • Elena Georgarakis & Thomas Bauwens & Anne-Marie Pronk & Tarek AlSkaif, 2021. "Keep it green, simple and socially fair: a choice experiment on prosumers' preferences for peer to peer electricity trading in the Netherlands," Papers 2109.02452, arXiv.org.
    • Handle: RePEc:arx:papers:2109.02452
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    Cited by:

    1. Anita De Franco & Elisabetta Venco & Roberto De Lotto & Caterina Pietra & Florian Kutzner & Mona Bielig & Melanie Vogel, 2023. "Drivers, Motivations, and Barriers in the Creation of Energy Communities: Insights from the City of Segrate, Italy," Energies, MDPI, vol. 16(16), pages 1, August.
    2. Liaqat Ali & M. Imran Azim & Nabin B. Ojha & Jan Peters & Vivek Bhandari & Anand Menon & Vinod Tiwari & Jemma Green & S.M. Muyeen, 2023. "Balancing Usage Profiles and Benefitting End Users through Blockchain Based Local Energy Trading: A German Case Study," Energies, MDPI, vol. 16(17), pages 1-18, August.
    3. Dukovska, Irena & Slootweg, J.G. (Han) & Paterakis, Nikolaos G., 2023. "Introducing user preferences for peer-to-peer electricity trading through stochastic multi-objective optimization," Applied Energy, Elsevier, vol. 338(C).
    4. Steven Beattie & Wai-Kin (Victor) Chan & Zixuan Wei & Zhibin Zhu, 2022. "Simulation Analysis of a Double Auction-Based Local Energy Market in Socio-Economic Context," Sustainability, MDPI, vol. 14(13), pages 1-25, June.
    5. Dynge, Marthe Fogstad & Berg, Kjersti & Bjarghov, Sigurd & Cali, Ümit, 2023. "Local electricity market pricing mechanisms’ impact on welfare distribution, privacy and transparency," Applied Energy, Elsevier, vol. 341(C).
    6. Izabela Jonek-Kowalska, 2023. "Motives for the Use of Photovoltaic Installations in Poland against the Background of the Share of Solar Energy in the Structure of Energy Resources in the Developing Economies of Central and Eastern ," Resources, MDPI, vol. 12(8), pages 1-25, July.
    7. Sridhar, Araavind & Honkapuro, Samuli & Ruiz, Fredy & Stoklasa, Jan & Annala, Salla & Wolff, Annika & Rautiainen, Antti, 2023. "Residential consumer preferences to demand response: Analysis of different motivators to enroll in direct load control demand response," Energy Policy, Elsevier, vol. 173(C).
    8. Hahnel, Ulf J.J. & Fell, Michael J., 2022. "Pricing decisions in peer-to-peer and prosumer-centred electricity markets: Experimental analysis in Germany and the United Kingdom," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    9. Bauwens, Thomas & Schraven, Daan & Drewing, Emily & Radtke, Jörg & Holstenkamp, Lars & Gotchev, Boris & Yildiz, Özgür, 2022. "Conceptualizing community in energy systems: A systematic review of 183 definitions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).

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