A method for determining the maximum P2P penetration considering stakeholder benefits

Abstract

AbstractThe rise of distributed energy resources has empowered consumers to become prosumers, generating their own electricity. This trend has led to the development of peer‐to‐peer (P2P) energy trading, where P2P participants trade energy among themselves. Since the integration of P2P energy trading can influence retail markets in distribution systems, the focus is on its effects on retail markets. Therefore, this paper proposes a method to determine the maximum P2P penetration levels on distribution systems while considering the effects on the benefits of stakeholders, including P2P participants, retail customers, and distribution system operators. The proposed method also assesses the impact of P2P energy trading on two schemes: the impact on buy‐from‐grid prices for retail customers and the impact on social benefits. The analysis revealed three distinct zones of photovoltaic and P2P penetration: the P2P restricted zone, the P2P with curtailment zone, and the P2P free trading zone. By examining these zones, the maximum P2P penetration levels—which ensure that buy‐from‐grid prices and social benefits remain within acceptable thresholds—can be determined. This study enables DSOs to find the maximum P2P penetration level at which a balance of stakeholders’ benefits can be achieved and non‐beneficial effects on retail customers do not occur.