What Is Peer to Peer Energy Trading?
Peer-To-Peer (P2P) Energy trading has taken the world by surprise because this mechanism has changed the course of history for the energy industry in the past whole decade. PEER-TO-PEER technology has enabled energy generators and providers to decentralize the energy providing resources. Basically, in a PEER-TO-PEER trading paradigm, there are multiple actors involved including energy generators, consumers, and prosumers. These players can exchange energy with each other directly without the necessity of an intermediary energy supplier. This mechanism makes it easy and efficient for suppliers and consumers to provide purchase energy respectively. In addition to this, unlike the previous centralized energy providing systems, the P2P paradigm makes use of secure platforms that makes use of blockchain technology. Blockchains helps ensure transparency as it functions based on database technology. Database technology basically processes and stores information. So, let’s say for instance a consumer wants to share their excess energy amongst other players. They can do so with the help of blockchains and not only that they can also control how the excess energy is being distributed through microgrids. The most amazing feature about P2P energy trading is that even if a player does not have solar panels, they can still purchase energy from others. In addition to this, P2P energy trading provides numerous different kinds of benefits. It eradicates multiple different excessive costs of energy supply, such as transportation cost. Since the energy is not to be transported from a centrally located power plant, thus there is no requirement for hefty transportation costs. Furthermore, as this trading mechanism connects the supplier to the consumer directly, thus it ensures ease of access of the consumer. In today’s fast age of technology, time and efficiency are of the utmost importance and P2P Trading system functions on this principle. As mentioned earlier as well, in a P2P system, with the help of blockchains the transactions are highly transparent as all purchases are made publicly. The consumers have numerous amounts of choices in suppliers as well as prosumers. Keeping the environment in mind. Energy generation through P2P trading can be done through renewable resources as well. This means that this new technology is environment friendly and sustainable in the long run. The P2P Energy Trading mechanism has expanded in North America and Europe.
There are multiple different companies that provide the PEER-TO-PEER trading paradigm including:
Peer-To-Peer Trading System is a real game-changer in the energy industry. This paradigm can entirely shift the Energy Market and make it consumer-friendly. By integrating a decentralized system, the P2P mechanism can induce incentives and make the energy market boom. This would also help in raising value of companies that deal with the energy sector. In addition to this, since P2P mechanisms make use of virtual currency, this system could normalize the use of cryptocurrency on a global scale and thus make revolutionary changes that could change the way we live in the next coming decades. Peer-To-Peer Technology no doubt will open new avenues for the energy industry.
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