Overview of the main challenges and threats for implementation of the advanced concept for decentralized trading in microgrids

Abstract

Current trends of decentralization, digitalization, decarbonization and democratization in the power sector enable new business models featuring active participation of the distributed energy resources and distributed storage systems. Moreover, individual and small market participants acting as peers want to trade electricity within local communities. Peer-to-peer decentralized electricity trading in microgrids using distributed ledger technology could be a solution for establishing local markets and accelerating the integration of distributed energy resources. In this paper, main technical, economic, social and regulatory challenges and threats for implementation of the peer-to-peer concept for electricity trading in microgrids are stated and discussed.