In the face of climate change and rising costs of generating energy from conventional sources, societies are forced to look for an alternative solution. Many believe that renewable energy sources along with high energy efficiency could become such an alternative. However, the current system requires large utilities to act as a third party intermediary between prosumers and consumers. An intermediary who, at its discretion, determines the costs of purchasing and selling renewable energy from private producers of green energy.
The solution to this problem seems to be the decentralization of the energy market as it creates a democratic system of purchasing renewable energy and helps to actually finance renewable energy plants as energy producers are able to pre-sell this future energy as a commodity. However, such a solution requires the introduction of a mechanism regulating and managing relations between producers and consumers.
The Energy Trading Platform (PHE) enables the owners of distributed energy resources (more precisely – producers) to conduct P2P (peer-to-peer) transactions with consumers. On the other hand, consumers can buy the platform directly from the producer, regardless of whether it will be a power plant or the closest neighbor who has, for example, surplus production of energy from solar panels.
PHE allows you to create and manage a decentralized electricity trading market, where each of its participants can choose a suitable contractor and establish a direct relationship with him. The transactions concluded in this way help lower the cost of energy for the consumer as they bypass the third party demanding a license fee or commission. And also a producer that can compete directly without having to consider intermediaries.
The solution allows consumers to conveniently and transparently choose their preferred energy source offering the best rates. They can also see exactly what kind of energy each producer is offering before accepting the offer, or place electricity orders based on their Willingness to Pay (WTP). When the manufacturer sets an offer that matches this price, the consumer’s order is automatically fulfilled and they both enter into a direct contract.
PHE-operated P2P trading in local energy markets can provide a socio-economic incentive that promotes local renewable energy production to potential prosumers. Consumers who cannot afford to invest in renewable energy sources due to financial issues or limited space can buy green energy at affordable prices.
It is a transparent system that can play a significant role in reducing energy prices in all markets. The platform supports energy trading across the industry, from energy giants to prosumers. As the global energy transition moves towards adopting more decentralized energy structures, this model will positively contribute to this shift.