A Novel Peer-to-Peer Electricity Usage Rights Transfer Framework for Residential Demand-Side Management

This paper presents a quota-based peer-to-peer (P2P) electricity usage rights transfer mechanism tailored for apartment-style residential consumers who do not have access to on-site energy production or storage. The framework operates under Turkey’s two-tier residential electricity pricing structure, enabling users with monthly consumption below 240 kWh to transfer unused quota to over-consuming peers in exchange for financial compensation. The mechanism incorporates time-of-use (ToU) constraints, allocating transferable quota across daytime (T1), peak (T2), and nighttime (T3) periods, which encourages load shifting away from peak hours. A water fill algorithm ensures fair distribution of the limited quota among buyers, optimizing the allocation process. A case study is conducted using data from a 28-unit apartment block in Malatya, Türkiye. Real household demographic data and monthly bills are used to synthesize hourly profiles for analysis. Simulation results reveal that under the proposed mechanism, users can reduce their electricity bills by up to 9.5% without changing total consumption—merely by shifting usage to off-peak hours. Additionally, the system-level energy cost decreased by up to 4.2%, driven by a reduction in peak-hour consumption and improved alignment with market clearing prices. These findings suggest that the method not only benefits individual consumers but also provides value to distribution system operators by lowering grid stress and energy procurement costs. Overall, the study offers a regulation-compatible, low-cost alternative to traditional demand-side management solutions and demonstrates how behavioral incentives can unlock flexibility in urban residential settings through decentralized energy cooperation.