The importance of classification in reducing the congestion price in peerto-peer energy trading

Abstract

Peer-to-peer energy trading is a model in which energy can be exchanged directly betweenenergy producers and consumers. This model offers an innovative approach to energy markets. Intraditional energy trading models, energy producers collect energy at a single point and then distribute it toconsumption points. However, with peer-to-peer energy trading, energy producers can offer energy directlyto consumers, thus reducing the costs of intermediaries and distribution networks. [1], [12]The importance of the peer-to-peer energy trading model comes from several aspects: Energy Efficiency,Renewable Energy Incentives, Flexibility and Reliability etc.Peer-to-peer energy trading allows the energy system to become more decentralized and more sustainable.However, an appropriate classification and regulation is necessary for peer-to-peer energy trading to workeffectively. [2]The most important of these classifications is the distance category. Distance and peer-to-peer energytrading offers a new paradigm for efficient and sustainable energy distribution. Compared to traditionalenergy distribution models, this new approach allows energy consumers to exchange energy amongthemselves. This aims to provide a more flexible, efficient, and environmentally friendly energydistribution. [3], [13]In this study, I made simulations to see how the distance could have an effect on the energy trade betweenpeers, and as a result of the simulations, the distance and arrangement of consumers from each other wasexamined. As a result, the regulation of consumers has proven to have an effect on trade, and theclassification of consumers shows that it has a large effect on lowering the congestion price.