Peer-to-Peer, P2p energy trading Platform is on boom with an increase in solar & battery storage systems. The platform lets the consumer utilise the extra energy/power produced by users than they need for the benefit of other users for profit. The system has been highly respected by colossal businesses with advantages such as not involving third party for making one on one deals and deciding terms, save money , transparency in dealings with other consumers.
Peer-to-peer is a person to person system than a large commercial enterprise to consumer.
Electricity can be traded as a commodity now , people can choose how they use it and who they do business with. Through P2p the consumer can choose to invest or buy solar energy from their neighbours, local wind or solar farm, trade for free or at a discount to their friends and family, choose immense energy from distributed rooftop solar systems or home battery banks, or even neighbours.
With the P2p energy platform user can set their own terms like they can set their own price limit which is usually no more than 20c/Kwh from any source, the P2p energy agreements can be for instant transactions, one-off or longer agreements upto years. NEM (National Electricity market) is a wholesale electricity market where consumer can do energy trading business. To be on it households must have generators no smaller than 5 megawatts-about 5000x 5kW solar systems.
The average home owner from 1.5kW solar system or big coal fired power plants can engage in peer to peer solar energy depending upon the software and the technology used for participation in the market. Emergence of a peer-to-peer platform along with the unveiling of smart meters has initiated disintermediation, thereby driving a disruptive force powered by blockchain in the energy trade system. Blockchain involves a block of data (transaction) interlocked to the previous block in the chain.
It is a type of a distributed ledger that comprises of a immutable, digitally recorded data in a block stored linearly. Blockchain technology has potential benefits in distributed energy trading and sharing. The components interaction on the proposed blockchain P2P energy trading platform has entities such as Producers, DSO(Distribution System Operators), Consumers.
Business Service component focuses on creating transaction, smart contract and messaging. The processes starts with Peers Discovery, information broadcast, block validation, transaction creation to blockchain.