TY - JOUR
T1 - Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market
AU - Pranadi, Aloysius Damar
AU - Setiawan, Eko Adhi
N1 - Funding Information:
This research was supported and funded by 0460/UN2.R3.1/HKP.05.00/2019, University of Indonesia.
Publisher Copyright:
© 2020 Published by peer-reviewed open access scientific journal, JES at DergiPark (https://dergipark.org.tr/en/pub/jes)
Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.
PY - 2020/12/31
Y1 - 2020/12/31
N2 - Recently, feed-in-tariff (FIT) is no longer under government's preference due to fiscal support limits and reluctancy 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 (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 (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 (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 installing solar photovoltaic (solar PV) can fasten their payback period up to 2 years from its net metering payback, raise internal rate of return (IRR) by 2-3%, obtain 500 US$ net present value (NPV) for prosumer only (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 shows that P2P is institutionally feasible for regulated market with any restriction to sell electricity from non-utility entities.
AB - Recently, feed-in-tariff (FIT) is no longer under government's preference due to fiscal support limits and reluctancy 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 (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 (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 (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 installing solar photovoltaic (solar PV) can fasten their payback period up to 2 years from its net metering payback, raise internal rate of return (IRR) by 2-3%, obtain 500 US$ net present value (NPV) for prosumer only (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 shows that P2P is institutionally feasible for regulated market with any restriction to sell electricity from non-utility entities.
KW - Fuzzy PI controller
KW - Interleaved boost converter
KW - PI controller
KW - Soft switching
UR - http://www.scopus.com/inward/record.url?scp=85099372207&partnerID=8YFLogxK
U2 - 10.30521/jes.748138
DO - 10.30521/jes.748138
M3 - Article
AN - SCOPUS:85099372207
SN - 2602-2052
VL - 4
SP - 179
EP - 195
JO - Journal of Energy Systems
JF - Journal of Energy Systems
IS - 4
M1 - 748138
ER -