Bidding on a peer-to-peer energy market - an expoloratory field study
Journal
Information Systems Research
ISSN
1047-7047
Type
journal article
Date Issued
2022-09-09
Author(s)
Wörner, Anselma Meret
Tiefenbeck, Verena
Ableitner, Liliane
Azevedo, Inês
Abstract (De)
Moving toward sustainable energy systems to address climate change is one of the key challenges of our generation. To that end, investments in renewable energy and balancing renewable supply and energy demand on the larger scale are crucial. One mechanism to create price signals for demand balancing, as well as for consumer engagement, is to establish trading platforms (or peer-to-peer (P2P) markets) through which households can directly buy and sell renewable energy. However, residential consumers are typically lay users with little or no previous exposure to the complexity and the dynamics involved in energy markets. More so, empirical research on consumer engagement in the energy sector indicates that individuals tend to act against their stated proenvironmental intentions and to lose interest in energy management systems particularly quickly—calling into question regulatory efforts to foster P2P markets to push the transition to renewable energy. We have implemented the first empirical study worldwide that analyzes bidding behavior in a real-world P2P energy market, in which users bid for solar energy via an auction mechanism. For the duration of an entire year, users could interact with the market using a web app. The prices settled on the P2P market directly impacted participants’ electricity bills. We provide unique empirical evidence showing that (1) participants were willing to engage in energy trading and that (2) they understood the market mechanism surprisingly well and exhibited learning effects. Still, bidding behavior did not reflect their stated intention of paying a price premium for local solar energy. The market outcomes reveal that P2P energy markets can indeed have a positive impact on balancing demand and supply, thereby addressing the fundamental challenge of distributed renewable energy systems
Language
English
Keywords
green IS
P2P markets
electronic markets
market design
sustainable energy systems
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
INFORMS
Publisher place
informPubsOnLine
Volume
33/3
Start page
794
End page
808
Pages
15
Subject(s)
Eprints ID
267652