With the rising trend of solar and battery storage technology gave emergence to the novel concept of Peer-to-peer (P2P) trading. It is a next-generation energy management technology of producing renewable energy through solar photovoltaic panels at an individual level and sharing it with others locally through buying and selling between two or more grid connecting parties. This system economically benefits the consumers who are willing to take advantage from the users who produce energy in surplus and transacting that energy. Often it is done in the form of solar energy through a secure platform to effectively manage their energy resources.
It greatly benefits the people who are willing to access renewable energy at a competitive price without getting the whole solar system installed, and get it shared from their friends or neighbors. The energy does not require to be transported from a centrally located power plant which adds the benefit of reduced electricity transportation cost. P2P is considered the most efficient way to maintain competitive electricity prices in the wholesale market as it allows retailers and generators to make the most feasible deal for buying and selling of energy.
Participating in P2P trading reaps substantial gains for proactive consumers (prosumers), generators, retailers, and distribution network system providers (DNSPs). It also helps in reducing peak demand while lowering investment and operating costs. Australian Renewable Energy Agency (ARENA) has developed a blockchain technology to facilitate trade between households and businesses to share locally generated power among each other. Peer to peer trading has opened up a wide array of opportunities in the renewable energy sector that does not let the excess solar power be wasted during peak sunlight hours. The innovative process of trading enabled returns on capital investment in renewable energy and extended a market-oriented solution with a greater financial benefits than a feed-in rate to effectively overcome the catastrophic climate emergency.