Identifying the Potential for Peer-to-Peer Trading of Rooftop Solar Power for Indian Scenario

Due to the efficacious and continual development in the integration of Distributed Energy Resources (DERs) with the power grid, the power system is metamorphosing towards a dynamic, decentralized and distributed energy paradigm. DERs are classified as wind turbine generators, rooftop solar PV plants, energy storage devices, and electric vehicles that are usually owned and operated by the end-users of a distribution network. A smart grid framework which incentivizes the active involvement of such end-user based DERs into the grid is the ideal requirement to embrace this transition. Since the end-users not only consume but also generate power as well, for such ‘Prosumers’, Peer to Peer (P2P) trading will provide a market place for localized energy trading between peers, enabling sustainability and ensuring locally balanced distributed energy within the community. This paper proposes an innovative market mechanism and a pricing strategy for the smart grid - "P2P Trading, which allows for each peer of the network to participate in energy trading with each other and with the grid. The paper also shows the potential of P2P trading in reducing consumer costs, and by exploring opportunities for earning revenue for the prosumers from surplus energy. The import and export profiles of a group of consumers of an actual distribution utility have been used for this study. After observing the power profiles of the consumers, the best suitable period for P2P trading has been identified and a possible pricing strategy has been discussed.