Impact of a Peer-to-Peer Electricity Trading Scheme on Increasing Renewable Energy Generation (A Practical Study on Decreasing Electricity Imbalances)

Document Type : Research Article

Authors

1 Associate Professor, Department of Economics, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran (Corresponding Author).

2 Ph.D. Student of Development Economics, Department of Economics, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran.

10.22084/aes.2025.31262.3808

Abstract

Decentralized energy models such as Peer-to-Peer (P2P) electricity trading schemes can provide a new and effective solution to increase the use of clean and renewable energy source, in a situation where traditional electricity networks are confronting problems such as energy imbalance, increased consumption, and environmental constraints. In this framework, this study examines the effect of P2P electricity trading in the growth of solar electricity generation in selected countries during the period 2000 to 2023. The effects of variables such as the implementation of the P2P policy, electricity price, population, per capita income, annual temperature, solar panel price, and composite economic development index on photovoltaic electricity generation have been analyzed using the dynamic panel data method and the systemic generalized moment estimator (GMM). Results indicate that the P2P policy has a positive and significant effect on the growth of solar electricity generation and plays an important role in enabling consumers and increasing the motivation to invest in clean energy. Furthermore, economic and climatic factors including factors such as growing electricity prices and air temperature have been identified as key drivers in the incentive to install solar panels. Findings suggest specific policy solutions for countries facing an energy crisis, while providing valid empirical evidence including Iran. For Iran specifically, successful P2P implementation requires comprehensive legal, technical, and economic infrastructure development, including specific trading regulations, digital infrastructure enhancement, smart grid management, financial incentives for solar installations, public education programs, transparent electricity pricing reforms, and local energy market development to achieve sustainable decentralized energy transition.

Keywords

Main Subjects

References

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Journal of Applied Economics Studies in Iran
Volume 14, Issue 56
February 2026
Pages 167-201

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