Strategies for Sustainable Peer-to-Peer Energy Trading: Revenue, Grid Impact, and Investment Analysis

This paper presents the development of a sustainable local electricity market (LEC) for the energy community, focusing on the effects of peer-to-peer (P2P) energy trading on consumers and prosumers. It assesses these systems' economic and technical feasibility under retail pricing and feed-in tariff (FiT) structures through the improvement of the market modelling by adding a peak demand constraint. Through modelling and simulation, the study analyses photovoltaic (PV) and battery energy storage systems (BESS) to maximise energy savings while minimising network stress. It highlights the impact of network loss factors and fees on P2P trading across different scenarios. The findings indicate that well-designed PV and BESS systems and effective P2P trading mechanisms can significantly enhance residential energy efficiency and serve as a viable revenue model. Additionally, peak demand constraints reduce network stress with minimal effects on P2P trading and operating costs, showing notable cost benefits in the European Low Voltage Distribution Network (LVDN) test network analysis. This paper contributes valuable insights for policymakers, energy providers, network and market operators, and residential communities considering adopting decentralised energy solutions.