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 between energy producers and consumers. This model offers an innovative approach to energy markets. In traditional energy trading models, energy producers collect energy at a single point and then distribute it to consumption points. However, with peer-to-peer energy trading, energy producers can offer energy directly to 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 work effectively. [2] The most important of these classifications is the distance category. Distance and peer-to-peer energy trading offers a new paradigm for efficient and sustainable energy distribution. Compared to traditional energy distribution models, this new approach allows energy consumers to exchange energy among themselves. This aims to provide a more flexible, efficient, and environmentally friendly energy distribution. [3], [13] In this study, I made simulations to see how the distance could have an effect on the energy trade between peers, and as a result of the simulations, the distance and arrangement of consumers from each other was examined. As a result, the regulation of consumers has proven to have an effect on trade, and the classification of consumers shows that it has a large effect on lowering the congestion price.