Novel economic modelling of a Peer-to-Peer Electricity Market with the inclusion of distributed energy storage

Current electricity distribution systems allow prosumers to sell their surplus electricity back to the Distributed Network Operator (DNO). The export tariffs at which these sell-backs take place are considerably lower than the feed-in tariffs, offering little incentive to prosumers to sell their surplus energy. A peer-to-peer (P2P) electricity market where consumers and prosumers can interact by selling and buying energy between them at a premium rate that is lower than the standard feed-in tariffs but higher than the export tariffs is proposed. Such a system was modelled to process transactions every 20 seconds, and a simulation tool was created to obtain the total daily money flows between a consumer-prosumer pair. The inclusion of a Distributed Storage System (DSS) is also considered in the modelled system and simulation. The simulation results showed that the inclusion of a DSS is always beneficial for all parties in economic terms: consumers could save up to 6.4% on the cost of their electricity while prosumers could save up to 49.1%. A DSS could generate an income flow for the DNO of up to 6.9p/day per each consumer-prosumer pair.