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The development of new technology and the growing ethical concerns of energy consumers have, among other things, led to the emergence of innovative peer to peer trading solutions. Although “Peer to Peer” energy trading implies direct interaction between prosumers and consumers, nearly all peer to peer (P2P) exchanges of energy in Europe are ‘virtual’ not ‘physical’. This means they are purely commercial exchanges, overlaid on top of the public network, which avoids the cost of setting up new wires, necessary when implementing physical P2P energy trading.
Various technology and social factors are driving the P2P trend
As my colleague Alix Weil explained in her blog, a strong growth is expected in the market of Home Energy Management (HEM) and we believe over 2.3M homes will be equipped by 2023. This is mostly driven by the optimisation of self-consumption and of dynamic electricity tariffs.
We defined HEM as optimising the energy flows in the home, and this is only a part of a wider trend towards a more distributed, democratised energy system. Particularly linked to HEM, two other elements of the energy transition can see huge benefits from managing energy in the home:
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