Consumer Demand for Blockchain-Enabled Peer-to-Peer Electricity Trading in the United Kingdom: An Online Survey Experiment

Abstract

Peer-to-peer (P2P) energy trading could help address grid management challenges in a decentralizing electricity system, as well as provide other social and environmental benefits. Many existing and proposed trading schemes are enabled by blockchain, a distributed ledger technology (DLT) relying on cryptographic proof of ownership rather than human intermediaries to establish energy transactions. This study used an online survey experiment (n = 2064) to investigate how consumer demand for blockchain-enabled peer-to-peer energy trading schemes in the United Kingdom varies depending on how the consumer proposition is designed and communicated. The analysis provides some evidence of a preference for schemes offering to meet a higher proportion of participants' energy needs and for those operating at the city/region (as compared to national or neighbourhood) level. People were more likely to say they would participate when the scheme was framed as being run by their local council, followed by an energy supplier, community energy organization, and social media company. Anonymity was the most valued DLT characteristic and mentioning blockchain's association with Bitcoin led to a substantial decrease in intended uptake. We highlight a range of important questions and implications suggested by these findings for the introduction and operation of P2P trading schemes.

Privacy-Preserving Peer-to-Peer Energy Trading in Blockchain-Enabled Smart Grids Using Functional Encryption

“…Energy prosumers, i.e., energy consumers producing their own electrical power, are rapidly proliferating. Advanced smart grid technologies enable these prosumers to trade surplus energy with other peer prosumers through peer-to-peer (P2P) energy trading [3]. P2P energy trading is expected to be one of the most important elements of next-generation power systems [1].…”

“…In many ongoing trials, P2P energy trading is being facilitated by blockchain technology through blockchain's distributive nature and capacity to run smart contracts [3,4]. Such trading systems cannot be fully independent of the existing infrastructure, but the integration of new systems into conventional centralized energy systems is crucial [4].…”

“…In this situation, a utility company serves as both a distribution system operator (DSO), renting transmission and distribution lines to prosumers for P2P trading, and a load serving entity (LSE) (i.e., a power retailer providing stable electricity in a traditional way). According to a recent survey conducted in Reference [3], prosumers preferred established authorities, such as energy suppliers and the local council, to less stable parties, such as blockchain energy start-ups, as P2P scheme organizers because P2P trading between prosumers requires numerous safeguards. In addition, although the type of technology running the scheme was not important to the prosumers, the mention of Bitcoin [5] caused a significant negative reaction, which was likely due to its extreme price instability [3].…”

“…According to a recent survey conducted in Reference [3], prosumers preferred established authorities, such as energy suppliers and the local council, to less stable parties, such as blockchain energy start-ups, as P2P scheme organizers because P2P trading between prosumers requires numerous safeguards. In addition, although the type of technology running the scheme was not important to the prosumers, the mention of Bitcoin [5] caused a significant negative reaction, which was likely due to its extreme price instability [3]. Therefore, it would be desirable that a means for financially settling the energy transactions is established outside a blockchain.…”

“…The blockchain will contain all the details of the transactions mediated by the company, which can reveal a significant portion of the trade secrets of company, such as the size and pattern of transactions and the company revenue through mediation fees. Even if a private/permissioned blockchain is used, as in many previous works in relevant literature [3,4,7], every node participating in the blockchain will learn confidential information about the company.…”