Peer-to-peer energy platforms: Incentives for prosuming

Abstract

We analyse how new models of peer-to-peer exchange in the electricity sector may be effective and could yield incentives to invest in decentralized domestic production units based on renewable energy sources. We model a local exchange system for electricity, designed as a dealing platform, which determines purchase and selling prices on a continuous time basis. This allows us to question the participation of prosumers in peer-to-peer energy exchanges and their willingness to invest in local energy production. Compared to a no-platform configuration, we show that a pure dealing welfare maximizing platform creates at least as much incentive to install domestic production units. Then we challenge this main result considering several relevant features for peer-to-peer energy exchange.