The distributed power (DP) trading market is emerging as a crucial component in the global shift towards renewable energy and a low-carbon economy. However, despite its potential, the market faces significant challenges, including immature mechanisms and the volatility of power generation. In a groundbreaking study published in Humanities & Social Sciences Communications, Qianwen Li from the School of Business at Jiangnan University introduces a Hybrid Transaction Model (HTM) aimed at optimizing these market mechanisms.
The HTM is designed to enhance the efficiency and reliability of the DP trading market by structuring transactions into two distinct categories: the aggregation transaction market and the terminal transaction market. The aggregation transaction market focuses on trades between aggregators—entities that combine energy from various sources—and distributed users, ensuring that smaller producers can participate effectively. Meanwhile, the terminal transaction market facilitates exchanges between aggregators and larger industrial and commercial users, creating a more streamlined pathway for energy distribution.
Li emphasizes the importance of this model, stating, “By refining the grid fee structures and integrating a shared energy storage market, we can create a more resilient and responsive energy trading environment.” This integration is particularly vital as it addresses the increasing need for energy storage solutions, which are essential for managing the intermittent nature of renewable energy sources like wind and solar.
Using China as a case study, the research delves into the barriers currently hindering the development of the DP trading market. It identifies key challenges such as regulatory hurdles and the need for better infrastructure. However, the implications of HTM extend beyond China; its principles could inform similar markets in other regions striving to enhance their renewable energy capabilities.
The introduction of HTM could revolutionize how energy is traded, offering a more structured and reliable approach that could attract investment and foster innovation in the energy sector. As Li notes, “Optimizing the DP trading market is not just about improving efficiency; it’s about paving the way for a sustainable energy future.”
This research not only provides a roadmap for overcoming existing barriers but also highlights the commercial opportunities that arise from a well-functioning DP market. As global energy demands shift, the insights from this study could play a pivotal role in shaping the future of energy trading, making it a significant contribution to the field.
For those interested in exploring this innovative approach further, the full study can be found in Humanities & Social Sciences Communications, which translates to “Humanities & Social Sciences Communications” in English. For more information about the lead author, visit School of Business, Jiangnan University.
