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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

Author

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  • Arnob Das

    (Department of Mechanical Engineering, Rajshahi University of Engineering & Technology, Rajshahi 6204, Bangladesh)

  • Susmita Datta Peu

    (Department of Agriculture, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh)

  • Md. Abdul Mannan Akanda

    (School of Engineering and Technology, Central Michigan University, Mt. Pleasant, MI 48859, USA)

  • Abu Reza Md. Towfiqul Islam

    (Department of Disaster Management, Begum Rokeya University, Rangpur 5400, Bangladesh)

Abstract

Peer-to-peer (P2P) energy trading facilitates both consumers and prosumers to exchange energy without depending on an intermediate medium. This system makes the energy market more decentralized than before, which generates new opportunities in energy-trading enhancements. In recent years, P2P energy trading has emerged as a method for managing renewable energy sources in distribution networks. Studies have focused on creating pricing mechanisms for P2P energy trading, but most of them only consider energy prices. This is because of a lack of understanding of the pricing mechanisms in P2P energy trading. This paper provides a comprehensive overview of pricing mechanisms for energy and network service prices in P2P energy trading, based on the recent advancements in P2P. It suggests that pricing methodology can be categorized by trading process in two categories, namely energy pricing and network service pricing (NSP). Within these categories, network service pricing can be used to identify financial conflicts, and the relationship between energy and network service pricing can be determined by examining interactions within the trading process. This review can provide useful insights for creating a P2P energy market in distribution networks. This review work provides suggestions and future directions for further development in P2P pricing mechanisms.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:5:p:2198-:d:1079376
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