A Preference Analysis for a Peer-to-Peer (P2P) Electricity Trading Platform in South Korea

Dmitriy Li, Jeong-Hwan Bae () and Meenakshi Rishi ()
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Dmitriy Li: Department of Economics, Business Administration College, Chonnam National University, Gwangju 61186, Korea
Jeong-Hwan Bae: Department of Economics, Business Administration College, Chonnam National University, Gwangju 61186, Korea
Meenakshi Rishi: Albers School of Business and Economics, Seattle University, 901 12th Ave, Seattle, WA 98122, USA

Energies, 2022, vol. 15, issue 21, 1-20

Abstract: The Korean government is committed to advance the country’s energy transition to greener energy by increasing the share of renewable electricity to 20 percent by 2030 and to 30–35 percent by 2040. Achieving these goals will necessitate flexibility in energy markets as well as innovative business models and technological solutions. Peer-to-peer (P2P) electricity trading platforms (ETPs) are rapidly gaining traction, as they enable the integration of distributed energy sources into power systems. This study explores whether South Koreans are willing to participate in a hypothetical P2P ETP, which allows prosumers (who both consume and produce electricity) to trade electricity surpluses with their neighbours or with KEPCO (Korea Electric Power Corporation). We employ a choice experiment (CE) to examine respondent heterogeneous preferences and their willingness to pay (WTP) for a hypothetical P2P ETP in South Korea. Our findings indicate that two-thirds of total respondents in our CE are in favour of a P2P ETP if available. Cost savings and security play an essential role in respondent preferences for a P2P ETP business model. Respondents also prefer to trade renewable electricity with KEPCO rather than with other individuals. Per our statistical estimations, respondent WTP for a P2P ETP was estimated at USD 55.68/per month. Our analysis strongly recommends increasing consumer awareness of P2P ETPs to spur adoption. Energy trading platforms that are anchored in secure block chain technology can generate cost savings as well as support the country’s policy tilt toward green energy.

Keywords: peer-to-peer (P2P); electricity trading platform (ETP); choice experiment (CE); willingness to pay (WTP); e-prosumer (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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