LO3 Energy has found that peer-to-peer (P2P) energy trading can lift the earnings of those with distributed energy resources (DERs) by 37%.
The 12-month study consisted of a local energy marketplace (LEM) trial in Australia. It examined the associated network and market charges of P2P – considered one of P2P’s greatest challenges. LO3 modelled three scenarios – neither buyers or sellers paying network charges; costs split between the two; all costs charged to the consumer. It was found that, when trading local energy within a community, fewer losses are incurred and it is considered more cost efficient than transmitting power over long distances.
When consumers paid the costs, they were found to save 6-12% by buying locally. This was a scenario, LO3 noted, that was most consistent with existing markets and regulation. Those selling the electricity generated from the distributed energy resources were able to make between 18% to 37% more than they currently do.
Director of LO3 Australia Belinda Kinkead said: “The study showed the community wanted to embrace new technologies, wanted to keep energy spend in the community and wanted to buy their energy more cheaply. The test results demonstrated that even under existing restrictions a local energy market delivers that. The next step is to get these markets set up and then explore regulation changes to provide even bigger benefits.”