Enhancing Access to Affordable Energy Through Peer-to-Peer Automated Negotiations

Access to affordable energy has become a major concern in many European countries due to significant increases in energy prices. Concurrently, energy communities have emerged as a potential solution to mitigate this issue. In this paper, we propose a Local Energy Market (LEM) mechanism based on automated negotiations designed to reduce electricity bills for community members, particularly those experiencing fuel poverty (i.e. limited ability to meet rising energy costs). This LEM necessitates consumers to submit energy requests, including specific ones for their essential needs. It also supports consumers flexibility to maximise access to cheaper electricity offered by local producers. The advantages of the proposed P2P automated negotiation process between consumers and producers are showcased through a small stylized use case followed by an extension of the findings to the context of the Orkney Islands in the UK, an area significantly affected by fuel poverty. Results indicate that a maximum bill reduction of 30% can be achieved with such LEM, showing the potential of the method to improve access to affordable energy.