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Peer-to-Peer Energy Systems for Connected Communities: A Review of Recent Advances and Emerging Challenges (2011.11118v1)

Published 22 Nov 2020 in cs.DC

Abstract: After a century of relative stability of the electricity industry, extensive deployment of distributed energy resources and recent advances in computation and communication technologies have changed the nature of how we consume, trade, and apply energy. The power system is facing a transition from its traditional hierarchical structure to a more deregulated model by introducing new energy distribution models such as peer-to-peer sharing for connected communities. The proven effectiveness of P2P sharing in benefiting both prosumers and the grid has been demonstrated in many studies and pilot projects. However, there is still no extensive implementation of such sharing models in today's electricity markets. This paper aims to shed some light on this gap through a comprehensive overview of recent advances in the P2P energy system and an insightful discussion of the challenges that need to be addressed in order to establish P2P sharing as a viable energy management option in today's electricity market. To this end, in this article, we provide some background on different aspects of P2P sharing. Then, we discuss advances in P2P sharing through a systematic domain-based classification. We also review different pilot projects on P2P sharing across the globe. Finally, we identify and discuss a number of challenges that need to be addressed for scaling up P2P sharing in the electricity market followed by concluding remarks at the end of the paper.

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Authors (8)
  1. Wayes Tushar (30 papers)
  2. Chau Yuen (483 papers)
  3. Tapan Saha (10 papers)
  4. Thomas Morstyn (33 papers)
  5. Archie Chapman (11 papers)
  6. M. Jan E Alam (1 paper)
  7. Sarmad Hanif (8 papers)
  8. H. Vincent Poor (884 papers)
Citations (313)

Summary

  • The paper systematically classifies P2P energy trading frameworks, detailing recent pilot projects and challenges in market integration.
  • It examines the dual-layer structure of physical and virtual systems, highlighting innovations like blockchain, IoT, and AI for optimized energy management.
  • The study outlines regulatory, technological, and data security challenges while calling for interdisciplinary research to advance decentralized energy solutions.

An Analytical Overview of Peer-to-Peer Energy Systems for Connected Communities

This essay provides a comprehensive evaluation of the paper titled "Peer-to-Peer Energy Systems for Connected Communities: A Review of Recent Advances and Emerging Challenges." This paper reviews the transition occurring in energy systems towards a deregulated model facilitated by peer-to-peer (P2P) energy trading frameworks. It systematically classifies recent advancements, considers pilot projects, and outlines challenges for the extensive deployment of P2P systems.

The introduction of P2P energy sharing marks a significant transition from the conventional hierarchical model of energy distribution towards a decentralized, deregulated framework. The core concept underlying P2P energy systems is the facilitation of energy trading between prosumers—entities that both produce and consume energy. The paper highlights that although P2P sharing is theoretically advantageous for enhancing prosumer and grid welfare, its practical implementation remains limited.

Background and Systematic Overview

The paper details the underlying architecture of P2P energy systems using two tiers: the physical layer and the virtual layer. The physical layer incorporates the actual energy distribution system, equipped with smart meters and necessary communication infrastructure. The virtual layer involves the market operations, pricing mechanisms, and energy management systems that facilitate P2P trading.

Importantly, the paper distinguishes between different types of market structures for P2P energy systems. These include coordinated markets, where centralized controllers dominate both communication and transaction; decentralized markets, which allow autonomous prosumer interactions; and community markets that combine centralized communication with decentralized trading among prosumers.

Technological Foundations

The effective functioning of P2P energy systems is contingent on several technological innovations. Distributed ledger technologies, such as blockchain, provide the critical infrastructure for secure transactions without third-party intervention. Internet-of-Things (IoT) technology and artificial intelligence enhance the energy systems' efficiency by optimizing demand predictions and energy management. Additionally, advancements in inverter technologies and the management of distributed energy resources (DERs) facilitate the seamless integration of renewable energy sources into P2P frameworks, enhancing overall efficiency and reliability.

Domain-Specific Advancements

The paper classifies P2P energy systems advancements into three domains: the building domain, the storage domain, and the renewable domain. Each of these domains has unique characteristics for leveraging energy trade:

  • Building Domain: Focuses on optimizing energy use in residential and commercial buildings through intelligent management of flexible loads, including lighting and HVAC systems.
  • Storage Domain: Explores roles of different storage options—residential, community (shared), and mobile storage (electric vehicles)—in stabilizing and benefiting P2P networks.
  • Renewable Domain: Emphasizes the integration of solar, wind, and hydrogen power generation in P2P systems to enhance energy trading efficiency and reliability.

Pilot Projects and Practical Implications

Various pilot projects globally illustrate the P2P conceptual frameworks. Effective demonstrations exist in North America, Europe, Asia, and Australia, each revealing unique insights into different regulatory environments and community engagements. These projects are critical in elucidating potential barriers and pathways for wider adoption of P2P sharing systems.

Challenges and Future Directions

Despite the demonstrated benefits, several challenges must be overcome for P2P energy sharing to realize its full potential:

  1. Market Integration: Regulation and market design must adapt to accommodate P2P trading systems alongside traditional grid infrastructures.
  2. Network Constraints: Managing grid stability, accommodating network constraints without compromising prosumer autonomy remains a crucial requirement.
  3. Post-settlement Uncertainty: Mitigation of discrepancies in forecast and actual energy delivery to retain reliability and prosumer trust.
  4. Data Security and Privacy: Ensuring low-cost privacy-preserving solutions and blockchain-based security measures that align with distributed architectures.

The paper underscores the potential for P2P energy systems to revolutionize energy management and emphasizes pragmatic steps crucial for seamless integration into existing energy markets. It calls for continued interdisciplinary research, policy-making adaptations, and technological innovations to mitigate existing challenges and foster extensive P2P deployment. This holistic approach may establish P2P systems as viable alternatives to traditional energy distribution models.