Peer-to-peer electricity trading and the sharing economy: social, markets and regulatory perspectives

ABSTRACT

Peer-to-peer (P2P) electricity trading is a new data-driven business model currently being trialed within the energy sector. Introducing P2P transactions to an essential service such as energy supply could have far-reaching implications for individuals and the grid. This paper raises considerations and questions from social, market design and regulatory points of view, which should be understood and addressed by societies and policymakers. It does this by considering under what circumstances it is reasonable to conceptualize P2P electricity trading as part of the sharing economy, and drawing parallels to the sharing economy experience in other sectors. In order to reap the full societal benefits, while avoiding considerable risks to infrastructure and individuals, a policy approach promoting dialogue and innovation is necessary. We suggest the regulatory sandbox is the most appropriate tool to achieve this and would help avoid the breakdown of trust between policymakers and platform companies observed in other sectors.

KEYWORDS:

• Peer-to-peer electricity trading
• P2P
• sharing economy
• collaborative economy

Acknowledgments

This work was supported by the EPSRC grant EnergyREV (Energy Revolution Research Consortium) under grant number EP/S031863/1; UKRI Centre for Research into Energy Demand Solutions (grant number EP/R035288/1); and the UK Energy Research Centre (grant number EP/S029575/1).

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by the Engineering and Physical Sciences Research Council [EP/S031863/1], [EP/R035288/1] and [EP/S029575/1].