Year 2020, Volume 4 , Issue 4, Pages 179 - 195 2020-12-31

Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market

Aloysius Damar PRANADİ [1] , Eko SETİAWAN [2]


Recently, feed-in-tariff (FIT) is no longer under government’s preference due to fiscal support limits and reluctance 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 which install 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 show that P2P is institutionally feasible for regulated market with any restriction to sell electricity from non-utility entities.
Cost Benefit Analysis, Peer-to-Peer Mechanism, Solar PV
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Primary Language en
Subjects Engineering, Electrical and Electronic
Journal Section Research Articles
Authors

Orcid: 0000-0003-2114-0726
Author: Aloysius Damar PRANADİ (Primary Author)
Institution: Universitas Indonesia
Country: Indonesia


Orcid: 0000-0002-2090-0204
Author: Eko SETİAWAN
Institution: Universitas Indonesia
Country: Indonesia


Supporting Institution Universitas Indonesia
Project Number NKB-0460/UN2.R3.1/HKP.05.00/2019
Thanks University of Indonesia and Tropical Renewable Energy Center
Dates

Publication Date : December 31, 2020

Bibtex @research article { jes748138, journal = {Journal of Energy Systems}, issn = {}, eissn = {2602-2052}, address = {}, publisher = {Erol KURT}, year = {2020}, volume = {4}, pages = {179 - 195}, doi = {10.30521/jes.748138}, title = {Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market}, key = {cite}, author = {Pranadi̇, Aloysius Damar and Seti̇awan, Eko} }
APA Pranadi̇, A , Seti̇awan, E . (2020). Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market . Journal of Energy Systems , 4 (4) , 179-195 . DOI: 10.30521/jes.748138
MLA Pranadi̇, A , Seti̇awan, E . "Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market" . Journal of Energy Systems 4 (2020 ): 179-195 <https://dergipark.org.tr/en/pub/jes/issue/58131/748138>
Chicago Pranadi̇, A , Seti̇awan, E . "Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market". Journal of Energy Systems 4 (2020 ): 179-195
RIS TY - JOUR T1 - Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market AU - Aloysius Damar Pranadi̇ , Eko Seti̇awan Y1 - 2020 PY - 2020 N1 - doi: 10.30521/jes.748138 DO - 10.30521/jes.748138 T2 - Journal of Energy Systems JF - Journal JO - JOR SP - 179 EP - 195 VL - 4 IS - 4 SN - -2602-2052 M3 - doi: 10.30521/jes.748138 UR - https://doi.org/10.30521/jes.748138 Y2 - 2020 ER -
EndNote %0 Journal of Energy Systems Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market %A Aloysius Damar Pranadi̇ , Eko Seti̇awan %T Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market %D 2020 %J Journal of Energy Systems %P -2602-2052 %V 4 %N 4 %R doi: 10.30521/jes.748138 %U 10.30521/jes.748138
ISNAD Pranadi̇, Aloysius Damar , Seti̇awan, Eko . "Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market". Journal of Energy Systems 4 / 4 (December 2020): 179-195 . https://doi.org/10.30521/jes.748138
AMA Pranadi̇ A , Seti̇awan E . Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market. JES. 2020; 4(4): 179-195.
Vancouver Pranadi̇ A , Seti̇awan E . Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market. Journal of Energy Systems. 2020; 4(4): 179-195.
IEEE A. Pranadi̇ and E. Seti̇awan , "Cost benefit analysis for peer-to-peer mechanism in residential sector of a single buyer electricity market", Journal of Energy Systems, vol. 4, no. 4, pp. 179-195, Dec. 2021, doi:10.30521/jes.748138