Optimizing System Costs in Local Electricity Market through Peer-to-Peer Energy Trading: Impact of Photovoltaic and Battery Storage Adoption

As the global energy landscape undergoes a paradigm shift towards decentralization and sustainability, local electricity markets have emerged as a promising avenue for efficient energy exchange among prosumers. This conference paper presents a comprehensive study focused on optimizing system costs within local electricity markets through peer-to-peer energy transactions. Our primary objective is to investigate the impact of photovoltaic and battery storage adoption on system costs, shedding light on the potential economic benefits of these technologies in diverse scenarios. The study encompasses a rigorous analysis of various cases and scenarios to provide a holistic understanding of the dynamics involved in local electricity markets. By simulating a range of scenarios, we explore the implications of different levels of PV and battery storage adoption, evaluating their capacity to mitigate system costs effectively. Our findings reveal that, in the best-case scenario, substantial cost savings of 24.42% can be achieved through the integration of PV and battery storage systems into the local electricity market. This research contributes to the growing body of knowledge on local electricity markets, emphasizing the pivotal role of peer-to-peer energy transactions in shaping the future of energy distribution. Furthermore, it provides valuable insights for policymakers, utilities, and consumers seeking to optimize their participation in decentralized energy systems while promoting sustainable energy practices.