University of Bristol gets grant to research P2P energy market

Computer scientists at the University of Bristol are using a £460,000 grant from the EPSRC to research ‘free trade’ between micro-generators in a peer-to-peer (P2P) energy market, which involves any two individuals/households directly buying from and selling to each other, without inter-mediating utilities or other third parties.

Homes and companies that utilize solar and wind power would be key beneficiaries of this research, with the key aim of the project to study the feasibility of a ‘democratised’ P2P energy market.

Project lead Dr Ruzanna Chitchyan, an expert in sofware engineering from the University of Bristol, described the concept as a “sharing platform.”

“Perhaps you have installed some solar panels and you would much rather contribute your excess generation free of charge to the nearby homeless shelter instead of selling it back to the utility provider. Or sell it to someone else at a better price or give it to your neighbour. The households that produce the energy should have the power to decide on what to do with it,” she said.

“Similarly, consumers should be able to decide whose energy and at what price they want to buy. The HoSEM trading platform will support this freedom of choice.

“Similar ‘sharing’ platforms are already in place in other markets, for example via Airbnb in the hotel industry, or Uber in taxi hire, though both of these still impose substantial centralisation and intermediation charges.”

The research will examine whether the infrastructure for P2P energy trading is technically feasible and potential providers, along with discovering what the role of the current major power producers would be in such a market.

The study will also answer whether supply continuity can be ensured under the fluctuating generation imposed by the nature of the renewable energy sources, as well as what regulatory changes would be necessary for this market to function. Furthermore, it will examine what mechanisms, including cyber security and privacy approaches, will be needed to engender trust in this system.

Jim Fleming, EPSRC’s Head of Energy, commented: “As we move to a low carbon society, we need to make the most of the energy generated by all producers, large or small. This project will look at the technical challenges that need to be overcome to implement a peer-to-peer energy trading system. If successful it will bring power from the people to the people.”