IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i3p1229-d744387.html
   My bibliography  Save this article

Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand

Author

Listed:
  • Siripha Junlakarn

    (Energy Research Institute, Chulalongkorn University, Bangkok 10330, Thailand)

  • Phimsupha Kokchang

    (Energy Research Institute, Chulalongkorn University, Bangkok 10330, Thailand)

  • Kulyos Audomvongseree

    (Energy Research Institute, Chulalongkorn University, Bangkok 10330, Thailand
    Department of Electrical Engineering, Faculty of Engineering, Chulalongkorn University, Bangkok 10330, Thailand)

Abstract

Recent developments in disruptive technologies along with the cost reduction of photovoltaics have been transforming business models in the electricity sector worldwide. The rise of prosumers has led to a more decentralized and open local green energy market through the emergence of peer-to-peer (P2P) energy trading, where consumers and prosumers can buy or sell electricity through an online trading platform. P2P energy trading has the potential to make green energy more accessible at the local level, provide a customer choice that aligns with community values, and promote the use of renewable energy (RE) for local consumption. Although P2P energy trading has already been adopted in some countries, its implementation remains challenging in other countries, including Thailand. In this work, we investigated the drivers and challenges of implementing P2P energy trading in Thailand based on the perspectives of P2P energy trading pilot project developers participating in the regulatory sandbox program. A strategic framework was used to identify the respondents’ standpoints on the political, economic, social, technological, legal, and environmental (PESTLE) factors that can influence the implementation of P2P energy trading. This can help businesses, policymakers, and regulators better understand drivers and barriers of P2P energy trading, which is a potential local energy market. This paper also provides policy recommendations for regulatory changes for the future development of P2P energy trading, including opening a third-party access (TPA) regime, enabling a liberalized market in the electricity market, and integrating the role and responsibilities of the prosumer for P2P energy trading into existing law.

Suggested Citation

  • Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:3:p:1229-:d:744387
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/3/1229/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/3/1229/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mengelkamp, Esther & Gärttner, Johannes & Rock, Kerstin & Kessler, Scott & Orsini, Lawrence & Weinhardt, Christof, 2018. "Designing microgrid energy markets," Applied Energy, Elsevier, vol. 210(C), pages 870-880.
    2. Prince Waqas Khan & Yung-Cheol Byun, 2021. "Blockchain-Based Peer-to-Peer Energy Trading and Charging Payment System for Electric Vehicles," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    3. Hirsch, Adam & Parag, Yael & Guerrero, Josep, 2018. "Microgrids: A review of technologies, key drivers, and outstanding issues," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 402-411.
    4. Diestelmeier, Lea, 2019. "Changing power: Shifting the role of electricity consumers with blockchain technology – Policy implications for EU electricity law," Energy Policy, Elsevier, vol. 128(C), pages 189-196.
    5. Chen, Kaixuan & Lin, Jin & Song, Yonghua, 2019. "Trading strategy optimization for a prosumer in continuous double auction-based peer-to-peer market: A prediction-integration model," Applied Energy, Elsevier, vol. 242(C), pages 1121-1133.
    6. Yael Parag & Benjamin K. Sovacool, 2016. "Electricity market design for the prosumer era," Nature Energy, Nature, vol. 1(4), pages 1-6, April.
    7. Michael J. Fell & Alexandra Schneiders & David Shipworth, 2019. "Consumer Demand for Blockchain-Enabled Peer-to-Peer Electricity Trading in the United Kingdom: An Online Survey Experiment," Energies, MDPI, vol. 12(20), pages 1-25, October.
    8. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
    9. Thomas, P.J.M. & Sandwell, P. & Williamson, S.J. & Harper, P.W., 2021. "A PESTLE analysis of solar home systems in refugee camps in Rwanda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    10. Inês, Campos & Guilherme, Pontes Luz & Esther, Marín-González & Swantje, Gährs & Stephen, Hall & Lars, Holstenkamp, 2020. "Regulatory challenges and opportunities for collective renewable energy prosumers in the EU," Energy Policy, Elsevier, vol. 138(C).
    11. Zhou, Yue & Wu, Jianzhong & Long, Chao, 2018. "Evaluation of peer-to-peer energy sharing mechanisms based on a multiagent simulation framework," Applied Energy, Elsevier, vol. 222(C), pages 993-1022.
    12. Sophie Adams & Donal Brown & Juan Pablo Cárdenas Álvarez & Ruzanna Chitchyan & Michael J. Fell & Ulf J. J. Hahnel & Kristina Hojckova & Charlotte Johnson & Lurian Klein & Mehdi Montakhabi & Kelvin Say, 2021. "Social and Economic Value in Emerging Decentralized Energy Business Models: A Critical Review," Energies, MDPI, vol. 14(23), pages 1-29, November.
    13. Tongsopit, Sopitsuda & Moungchareon, Sunee & Aksornkij, Apinya & Potisat, Tanai, 2016. "Business models and financing options for a rapid scale-up of rooftop solar power systems in Thailand," Energy Policy, Elsevier, vol. 95(C), pages 447-457.
    14. Long, Chao & Wu, Jianzhong & Zhou, Yue & Jenkins, Nick, 2018. "Peer-to-peer energy sharing through a two-stage aggregated battery control in a community Microgrid," Applied Energy, Elsevier, vol. 226(C), pages 261-276.
    15. Zalengera, Collen & Blanchard, Richard E. & Eames, Philip C. & Juma, Alnord M. & Chitawo, Maxon L. & Gondwe, Kondwani T., 2014. "Overview of the Malawi energy situation and A PESTLE analysis for sustainable development of renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 335-347.
    16. Kirsi Kotilainen & Ulla A. Saari, 2018. "Policy Influence on Consumers’ Evolution into Prosumers—Empirical Findings from an Exploratory Survey in Europe," Sustainability, MDPI, vol. 10(1), pages 1-22, January.
    17. Anastasia Christodoulou & Kevin Cullinane, 2019. "Identifying the Main Opportunities and Challenges from the Implementation of a Port Energy Management System: A SWOT/PESTLE Analysis," Sustainability, MDPI, vol. 11(21), pages 1-15, October.
    18. Alexandra Schneiders & David Shipworth, 2021. "Community Energy Groups: Can They Shield Consumers from the Risks of Using Blockchain for Peer-to-Peer Energy Trading?," Energies, MDPI, vol. 14(12), pages 1-15, June.
    19. Luthander, Rasmus & Widén, Joakim & Nilsson, Daniel & Palm, Jenny, 2015. "Photovoltaic self-consumption in buildings: A review," Applied Energy, Elsevier, vol. 142(C), pages 80-94.
    20. Tushar, Wayes & Saha, Tapan Kumar & Yuen, Chau & Morstyn, Thomas & McCulloch, Malcolm D. & Poor, H. Vincent & Wood, Kristin L., 2019. "A motivational game-theoretic approach for peer-to-peer energy trading in the smart grid," Applied Energy, Elsevier, vol. 243(C), pages 10-20.
    21. Jan Kalbantner & Konstantinos Markantonakis & Darren Hurley-Smith & Raja Naeem Akram & Benjamin Semal, 2021. "P2PEdge: A Decentralised, Scalable P2P Architecture for Energy Trading in Real-Time," Energies, MDPI, vol. 14(3), pages 1-25, January.
    22. Sopitsuda Tongsopit & Sunee Moungchareon & Apinya Aksornkij & Tanai Potisat, . "Business Models and Financing Options for a Rapid Scale-up of Rooftop Solar Power Systems in Thailand," Chapters, in: Shigeru Kimura & Youngho Chang & Yanfei Li (ed.), Financing Renewable Energy Development in East Asia Summit Countries A Primer of Effective Policy Instruments, chapter 4, pages 79-136, Economic Research Institute for ASEAN and East Asia (ERIA).
    23. Andoni, Merlinda & Robu, Valentin & Flynn, David & Abram, Simone & Geach, Dale & Jenkins, David & McCallum, Peter & Peacock, Andrew, 2019. "Blockchain technology in the energy sector: A systematic review of challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 143-174.
    24. Sousa, Tiago & Soares, Tiago & Pinson, Pierre & Moret, Fabio & Baroche, Thomas & Sorin, Etienne, 2019. "Peer-to-peer and community-based markets: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 367-378.
    25. Tushar, Wayes & Saha, Tapan Kumar & Yuen, Chau & Azim, M. Imran & Morstyn, Thomas & Poor, H. Vincent & Niyato, Dustin & Bean, Richard, 2020. "A coalition formation game framework for peer-to-peer energy trading," Applied Energy, Elsevier, vol. 261(C).
    26. Yuki Matsuda & Yuto Yamazaki & Hiromu Oki & Yasuhiro Takeda & Daishi Sagawa & Kenji Tanaka, 2021. "Demonstration of Blockchain Based Peer to Peer Energy Trading System with Real-Life Used PHEV and HEMS Charge Control," Energies, MDPI, vol. 14(22), pages 1-12, November.
    27. Ahl, Amanda & Yarime, Masaru & Tanaka, Kenji & Sagawa, Daishi, 2019. "Review of blockchain-based distributed energy: Implications for institutional development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 107(C), pages 200-211.
    28. Yong Long & Yu Wang & Chengrong Pan, 2018. "Incentive Mechanism of Micro-grid Project Development," Sustainability, MDPI, vol. 10(1), pages 1-19, January.
    29. Thomas Morstyn & Niall Farrell & Sarah J. Darby & Malcolm D. McCulloch, 2018. "Using peer-to-peer energy-trading platforms to incentivize prosumers to form federated power plants," Nature Energy, Nature, vol. 3(2), pages 94-101, February.
    30. Lüth, Alexandra & Zepter, Jan Martin & Crespo del Granado, Pedro & Egging, Ruud, 2018. "Local electricity market designs for peer-to-peer trading: The role of battery flexibility," Applied Energy, Elsevier, vol. 229(C), pages 1233-1243.
    31. Zhang, Chenghua & Wu, Jianzhong & Zhou, Yue & Cheng, Meng & Long, Chao, 2018. "Peer-to-Peer energy trading in a Microgrid," Applied Energy, Elsevier, vol. 220(C), pages 1-12.
    32. Brown, Donal & Hall, Stephen & Davis, Mark E., 2019. "Prosumers in the post subsidy era: an exploration of new prosumer business models in the UK," Energy Policy, Elsevier, vol. 135(C).
    33. Mehdi Montakhabi & Fairouz Zobiri & Shenja van der Graaf & Geert Deconinck & Domenico Orlando & Pieter Ballon & Mustafa A. Mustafa, 2021. "An Ecosystem View of Peer-to-Peer Electricity Trading: Scenario Building by Business Model Matrix to Identify New Roles," Energies, MDPI, vol. 14(15), pages 1-22, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ahl, Amanda & Goto, Mika & Yarime, Masaru & Tanaka, Kenji & Sagawa, Daishi, 2022. "Challenges and opportunities of blockchain energy applications: Interrelatedness among technological, economic, social, environmental, and institutional dimensions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 166(C).
    2. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    3. Yaçine Merrad & Mohamed Hadi Habaebi & Siti Fauziah Toha & Md. Rafiqul Islam & Teddy Surya Gunawan & Mokhtaria Mesri, 2022. "Fully Decentralized, Cost-Effective Energy Demand Response Management System with a Smart Contracts-Based Optimal Power Flow Solution for Smart Grids," Energies, MDPI, vol. 15(12), pages 1-27, June.
    4. Agnieszka Izabela Baruk & Mateusz Grzesiak, 2022. "Benefits Achieved by Energy Suppliers through Cooperation with Individual Recipients and Their Readiness for This Cooperation," Energies, MDPI, vol. 15(10), pages 1-16, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    2. Zhou, Yue & Wu, Jianzhong & Song, Guanyu & Long, Chao, 2020. "Framework design and optimal bidding strategy for ancillary service provision from a peer-to-peer energy trading community," Applied Energy, Elsevier, vol. 278(C).
    3. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    4. Filipe Bandeiras & Álvaro Gomes & Mário Gomes & Paulo Coelho, 2023. "Exploring Energy Trading Markets in Smart Grid and Microgrid Systems and Their Implications for Sustainability in Smart Cities," Energies, MDPI, vol. 16(2), pages 1-41, January.
    5. Meritxell Domènech Monfort & César De Jesús & Natapon Wanapinit & Niklas Hartmann, 2022. "A Review of Peer-to-Peer Energy Trading with Standard Terminology Proposal and a Techno-Economic Characterisation Matrix," Energies, MDPI, vol. 15(23), pages 1-29, November.
    6. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    7. Zheng, Boshen & Wei, Wei & Chen, Yue & Wu, Qiuwei & Mei, Shengwei, 2022. "A peer-to-peer energy trading market embedded with residential shared energy storage units," Applied Energy, Elsevier, vol. 308(C).
    8. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
    9. Esmat, Ayman & de Vos, Martijn & Ghiassi-Farrokhfal, Yashar & Palensky, Peter & Epema, Dick, 2021. "A novel decentralized platform for peer-to-peer energy trading market with blockchain technology," Applied Energy, Elsevier, vol. 282(PA).
    10. Karami, Mahdi & Madlener, Reinhard, 2022. "Business models for peer-to-peer energy trading in Germany based on households’ beliefs and preferences," Applied Energy, Elsevier, vol. 306(PB).
    11. Roth, Tamara & Utz, Manuel & Baumgarte, Felix & Rieger, Alexander & Sedlmeir, Johannes & Strüker, Jens, 2022. "Electricity powered by blockchain: A review with a European perspective," Applied Energy, Elsevier, vol. 325(C).
    12. Arnob Das & Susmita Datta Peu & Md. Abdul Mannan Akanda & Abu Reza Md. Towfiqul Islam, 2023. "Peer-to-Peer Energy Trading Pricing Mechanisms: Towards a Comprehensive Analysis of Energy and Network Service Pricing (NSP) Mechanisms to Get Sustainable Enviro-Economical Energy Sector," Energies, MDPI, vol. 16(5), pages 1-27, February.
    13. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
    14. Ableitner, Liliane & Tiefenbeck, Verena & Meeuw, Arne & Wörner, Anselma & Fleisch, Elgar & Wortmann, Felix, 2020. "User behavior in a real-world peer-to-peer electricity market," Applied Energy, Elsevier, vol. 270(C).
    15. Kobashi, Takuro & Yoshida, Takahiro & Yamagata, Yoshiki & Naito, Katsuhiko & Pfenninger, Stefan & Say, Kelvin & Takeda, Yasuhiro & Ahl, Amanda & Yarime, Masaru & Hara, Keishiro, 2020. "On the potential of “Photovoltaics + Electric vehicles” for deep decarbonization of Kyoto’s power systems: Techno-economic-social considerations," Applied Energy, Elsevier, vol. 275(C).
    16. Herenčić, Lin & Kirac, Mislav & Keko, Hrvoje & Kuzle, Igor & Rajšl, Ivan, 2022. "Automated energy sharing in MV and LV distribution grids within an energy community: A case for Croatian city of Križevci with a hybrid renewable system," Renewable Energy, Elsevier, vol. 191(C), pages 176-194.
    17. Javier Parra-Domínguez & Esteban Sánchez & Ángel Ordóñez, 2023. "The Prosumer: A Systematic Review of the New Paradigm in Energy and Sustainable Development," Sustainability, MDPI, vol. 15(13), pages 1-44, July.
    18. Jiang, Yanni & Zhou, Kaile & Lu, Xinhui & Yang, Shanlin, 2020. "Electricity trading pricing among prosumers with game theory-based model in energy blockchain environment," Applied Energy, Elsevier, vol. 271(C).
    19. Gorbatcheva, Anna & Watson, Nicole & Schneiders, Alexandra & Shipworth, David & Fell, Michael J., 2024. "Defining characteristics of peer-to-peer energy trading, transactive energy, and community self-consumption: A review of literature and expert perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 202(C).
    20. Maarten Wolsink, 2020. "Framing in Renewable Energy Policies: A Glossary," Energies, MDPI, vol. 13(11), pages 1-31, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:3:p:1229-:d:744387. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.