Local energy trading

Cédric Clastres, Maurice Kangni Ekoue and Laura Wangen

Chapter 80 in Elgar Encyclopedia of Energy Economics, 2025, pp 307-310 from Edward Elgar Publishing

Abstract: Local energy communities play a pivotal role in the ongoing energy transition through the promotion of local and renewable energy production. These communities act as platforms for members to consume energy after having locally generated, stored and traded energy within a predetermined area. To enhance self-consumption incentives and ensure the economic viability of energy communities, the development of efficient and equitable trading schemes is essential. Recently, several studies referred to the emerging Peer-to-Peer (P2P) trading model, emphasising its advantages for local energy markets. Hence, this entry investigates three pertinent P2P trading models that are of interest in the context of collective and cooperative trading. Ultimately, significant opportunities and challenges are identified, underlying the importance of addressing economic viability, social impacts and infrastructure challenges. Additionally, further research into efficient and fair trading models is imperative to facilitate the successful and sustainable implementation of local energy trading systems and energy communities.

Keywords: Energy Transition; Energy Communities; Local Energy Markets; Collective Self-Consumption; Grid Integration; Peer-to-Peer Trading (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035310364
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