Keep it green, simple and socially fair: a choice experiment on prosumers' preferences for peer to peer electricity trading in the Netherlands

TL;DR

This study investigates prosumers' preferences for peer-to-peer electricity trading in the Netherlands, emphasizing environmental and social motivations over purely monetary incentives, and highlights implications for policy and platform design.

Contribution

First discrete choice experiment analyzing prosumers' preferences in the Netherlands, revealing environmental and social factors as primary motivators for P2P electricity trading.

Findings

Prosumers prioritize environmental benefits in trading decisions.

Majority are willing to trade surplus electricity for free or non-monetary reasons.

Energy cooperatives show stronger social and environmental motivations.

Abstract

While the potential for peer-to-peer electricity trading, where households trade surplus electricity with peers in a local energy market, is rapidly growing, the drivers of participation in this trading scheme have been understudied so far. In particular, there is a dearth of research on the role of non-monetary incentives for trading surplus electricity, despite their potentially important role. This paper presents the first discrete choice experiment conducted with prosumers (i.e. proactive households actively managing their electricity production and consumption) in the Netherlands. Electricity trading preferences are analyzed regarding economic, environmental, social and technological parameters, based on survey data (N = 74). The dimensions most valued by prosumers are the environmental and, to a lesser extent, economic dimensions, highlighting the key motivating roles of environmental factors. Furthermore, a majority of prosumers stated they would provide surplus electricity for free or for non-monetary compensations, especially to energy-poor households. These observed trends were more pronounced among members of energy cooperatives. This suggests that peer-to-peer energy trading can advance a socially just energy transition. Regarding policy recommendations, these findings point to the need for communicating environmental and economic benefits when marketing P2P electricity trading platforms and for technical designs enabling effortless and customizable transactions