Exploring the determinants of : participation and payment requirements for peer 2 peer electricity markets in combination with smart electricity management requirements

Abstract

Using Peer-to-Peer electricity trading in combination with Smart Electricity Management Devices is a promising approach to use renewable electricity sources more effectively, while creating greater welfare for the market participants than current electricity markets do. The presented work investigates how the Willingness to Participate, the Minimum Savings for Participation, and the electricity prices in a Peer-to-Peer electricity market are shaped. Though investigating the relations of: Pro Environmental Behaviour, explanatory variables and control variables, with the Willingness to Participate, the Minimum Savings for Participation and the electricity prices on a Peer-to-Peer electricity market with Smart Electricity Management Devices. Therefore, the answers of 134 German residents to a questionnaire got evaluated, to determine the Willingness to Participate and the Minimum Savings for Participation in Peer-to-Peer electricity trading, Smart Electricity Management Device use and a combination of both. Furthermore, the buying and selling prices for electricity on a Peer-to-Peer market are determined. This work found that the Willingness to Participate in is fully mediating the relation between Pro Environmental Behaviour and the Minimum Savings for Participation. Also, the Willingness to Participate and the Minimum Savings for Participation are mediating the relation between Pro-Environmental Behaviour and the selling price for electricity. Additionally, simple linear relations and multiple relations of: Pro Environmental Behaviour, the explanatory variables and control variables, with: the Willingness to Participate, the Minimum Savings for Participation and the electricity prices are indicated. Finally, conceptual frameworks illustrate the most important relations and the mediation analyses with the respective effect sizes. The presented work found that a P2P electricity market could function effectively regarding the prices, and that Pro Environmental Behaviour is the most important external variable influencing the Willingness to Participate, the Minimum Savings for Participation and the electricity prices. Thus, this work provides valuable insights about what should be considered when setting up an actual Peer-to-Peer electricity market.