Business Model of Peer-to-Peer Energy Trading: A Review of Literature

Hani Muhsen, Adib Allahham, Ala’aldeen Al-Halhouli, Mohammed Al-Mahmodi, Asma Alkhraibat and Musab Hamdan
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Hani Muhsen: Department of Mechatronics Engineering, School of Applied Technical Sciences, German Jordanian University, Madaba 11180, Jordan
Adib Allahham: School of Engineering, Newcastle University, Newcastle upon Tyne NE1 7RU, UK
Ala’aldeen Al-Halhouli: Department of Mechatronics Engineering, School of Applied Technical Sciences, German Jordanian University, Madaba 11180, Jordan
Mohammed Al-Mahmodi: Smart Grid Lab, German Jordanian University, Madaba 11180, Jordan
Asma Alkhraibat: Smart Grid Lab, German Jordanian University, Madaba 11180, Jordan
Musab Hamdan: Smart Grid Lab, German Jordanian University, Madaba 11180, Jordan

Sustainability, 2022, vol. 14, issue 3, 1-22

Abstract: Peer-to-peer (P2P) energy trading is a promising energy trading mechanism due to the deployment of distributed energy resources in recent years. Trading energy between prosumers and consumers in the local energy market is undergoing massive research and development, paying significant attention to the business model of the energy market. In this paper, an extensive review was conducted on the current research in P2P energy trading to understand the business layer of the energy market concerning business model dimensions: bidding strategies and the market-clearing approach. Different types of game theoretical-based and auction-based market-clearing mechanisms are investigated, including a detailed classification of auctions. This study considers the possibility of employing the P2P technique in developing countries and reviewing existing business models and trading policies. The business layer of the P2P structure plays a vital role in developing an effective trading mechanism based on interactive energy markets.

Keywords: peer-to-peer (P2P) energy trading; business model; bidding strategies; auctions; game theory; developing countries (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (10)

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