A Comprehensive Review on Peer-to-Peer Energy Trading: Market Structure, Operational Layers, Energy Cooperatives and Multi-energy Systems

Abstract

The energy sector is experiencing a significant transformation due to the rising focus on renewable resources, smart grid technology advancements, energy management improvements, and operational efficiency. To successfully manage this transformation, all actors in the sector need to reassess their roles, develop innovative business models, and formulate effective strategies and policies. Peer-to-peer energy trading significantly contributes to this transformation by allowing individuals to trade energy with one another directly. While it offers advantages such as reducing peak demand, lowering backup needs, and minimizing network losses, its deployment in electricity grids increases the complexity of transactions at both virtual and physical layers. This paper provides an in-depth analysis of the latest advancements in peer-to-peer energy trading, highlighting its main features and the potential advantages for both the grid and prosumers. By organizing existing research, examining the market structure, and detailing common technical approaches, this paper offers a thorough overview of the future of peer-to-peer energy trading and the energy transition. This study highlights the necessity for stakeholders in the energy sector to embrace innovative strategies to adapt to the evolving market dynamics and achieve sustainable energy objectives.