• Energy Research

In recent years, numerous studies have explored the opportunities and challenges for emerging decentralized energy systems and business models. However, few studies have focussed specifically on the economic and social value associated with three emerging models: peer-to-peer energy trading (P2P), community self-consumption (CSC) and transactive energy (TE). This article presents the findings of a systematic literature review to address this gap. The paper makes two main contributions to the literature. Firstly, it offers a synthesis of research on the social and economic value of P2P, CSC and TE systems, concluding that there is evidence for a variety of sources of social value (including energy independence, local benefits, social relationships, environmental responsibility and participation and purpose) and economic value (including via self-consumption of renewable electricity, reduced electricity import costs, and improved electricity export prices). Secondly, it identifies factors and conditions necessary for the success of these models, which include willingness to participate, participant engagement with technology, and project engagement of households and communities, among other factors. Finally, it discusses conflicts and trade-offs in the value propositions of the models, how the three models differ from one another in terms of the value they aim to deliver and some of the open challenges that require further attention by researchers and practitioners.

This project will be conducted under the auspices of the Global Observatory on Peer-to-Peer, Community Self-Consumption and Transactive Energy (P2P/CSC/TE) Models of the Users TCP by International Energy Agency (IEA). The Observatory is an international forum for understanding the policy, regulatory, social and technological conditions necessary to support the wider deployment of P2P/CSC/TE models. The work of the Observatory is divided across five sub-tasks relating to different aspects of these models (grid physics; ICT and data; markets and transactions; economic and social value; policy and regulation). In order to identify the common critical success factors of these different models across sub-tasks and member countries, the Observatory will analyse pilot projects. To determine which projects to include as case studies, a set of selection criteria is required. More fundamentally, definitions and labels of P2P/CSC/TE models differ widely across contexts and there is no universally accepted definition for this class of models. This project aims to fill this research gap and provide a conceptual understanding of the characteristics of these models. The project will answer the following research question in the form of a concept definition paper: What are the key distinguishing features of energy systems labelled as Peer-to-Peer, Community/Collective Self-Consumption and Transactive Energy as outlined in the literature and by stakeholders? Findings of this project will form the basis for selection criteria for pilot projects studied under the Observatory.

Usually consumers have a relationship with a single energy supplier. Increasingly, the option for consumers to retain their current supplier whilst taking on additional contracts with local suppliers is viewed as having the potential to support growth of local renewable energy. This study took a behavioural economic approach and conducted two pre-registered nationally representative survey experiments (n=1042, n=762). The main aims of the study were to assess the attractiveness of a multiple supplier model for British consumers and to understand the role of default effects and associated cognitive biases (loss-aversion, cognitive effort and implied endorsement) in consumers’ decisions to remain with incumbent suppliers. Results showed that participants were significantly more likely to engage with local energy suppliers under a multiple supplier model than the current single supplier model. In one experiment, consumers’ preference for adding a local supplier under a multiple supplier model was so strong that it overcame default effects. The perception that the supplier has been recommended (i.e. implied endorsement) was the most robust mechanism associated with remaining with default suppliers, suggesting that explicit endorsement of local suppliers may encourage engagement with the energy market. These findings suggest findings suggest that multiple supplier models are likely to be a promising avenue for driving the growth of local energy and opening opportunities for innovation in the British energy market.