Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market

Authors : Aloysius Damar PRANADİ, Eko SETİAWAN

Pages : 179-195

Doi:10.30521/jes.748138

View : 22 | Download : 10

Publication Date : 2020-12-31

Article Type : Research Paper

Abstract :Recently, feed-in-tariff insert ignore into journalissuearticles values(FIT); is no longer under government’s preference due to fiscal support limits and reluctance of utility to purchase RE-based electricity at higher price. Indeed, the absence of any incentives will significantly impact to renewable market growth. Therefore, net metering/billing implemented, but sometimes its price is unfairly offered in comparison with utility retail price. To seek more interesting model that can benefit to government utility and people, a so-called mechanism peer-to-peer insert ignore into journalissuearticles values(P2P); is proposed as alternative solution in this study. This study investigates an applicability of this new energy trading mechanism in vertically integrated unit electricity market insert ignore into journalissuearticles values(regulated market);, by comparing this mechanism with the existing mechanism e.g. net metering/billing. The P2P was studied using a built-own optimization tool insert ignore into journalissuearticles values(in excel base); to determine its economic analysis, its market price and cost-benefit for utility and P2P participants. As a result, using P2P, each participant which install solar photovoltaic insert ignore into journalissuearticles values(solar PV); can fasten their payback period up to 2 years from its net metering payback, raise internal rate of return insert ignore into journalissuearticles values(IRR); by 2-3%, obtain 500 US$ net present value insert ignore into journalissuearticles values(NPV); for prosumer only insert ignore into journalissuearticles values(a consumer with electricity generator such as solar PV); and 3,000 US$ for prosumer with storage system in comparison with its analysis with existing net metering. Besides, P2P also brings monetized benefits for a single-buyer utility than its lost market. This study also show that P2P is institutionally feasible for regulated market with any restriction to sell electricity from non-utility entities.
Keywords : Cost Benefit Analysis, Peer to Peer Mechanism, Solar PV