Local power markets

Arbeitspapier

In current power markets, the bulk of electricity is sold wholesale and transported to consumers via long-distance transmission lines. Recently, decentralized local power markets have evolved, often as isolated networks based on solar generation. We analyze strategic pricing, investment, and welfare in local power markets. We show that local power markets with peer-to-peer trading are competitive and provide efficient investment incentives, even for a small number of participating households. We identify positive network externalities that make larger markets more attractive but lead to inefficiencies where networks compete. Collectively, our results present a set of positive efficiency results for peer-to-peer electricity markets.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: DIW Discussion Papers ; No. 1904

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Collaborative Consumption‡ ; Crowd-Based Firms‡ ; Market Design ; Electric Utilities
• Thema: Market Design ; Networks ; Peer-to-Peer Markets ; Electricity

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Baake, Pio ; Schwenen, Sebastian ; von Hirschhausen, Christian R.
• Ereignis: Veröffentlichung
• (wer): Deutsches Institut für Wirtschaftsforschung (DIW)
• (wo): Berlin
• (wann): 2020

Weitere Informationen

• Handle: http://hdl.handle.net/10419/226816
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ