Article 4 of 6 from the Series - P2P for Large AD Generators
In the previous articles, we explored three key ideas:
This naturally leads to the next question:
For most large AD operators, commercial performance already depends on a combination of:
These stakeholders perform a critical role in maximising value from generation assets.
The purpose of P2P is to provide an additional commercial option that existing teams can choose to use when it creates value.
Most commercial arrangements ultimately involve making decisions about where power should be sold.
Traditionally, available options may include:
P2P introduces an additional destination for selected volumes of generation.
The important distinction is that there may be multiple corporate consumers seeking the same renewable power, each with different requirements and different willingness to pay.
This creates something that does not typically exist within a traditional single-route structure:
Multiple potential outcomes for the same unit of generation.
Consider a particular half-hour settlement period, a generator has a finite amount of available generation.
At the same time, there may be multiple potential buyers, each presenting different commercial opportunities.
Commercial teams can establish rules that determine how available generation should be allocated. Price may be the primary consideration, but it is not always the only one. Other factors may include:
The result is a framework where allocation decisions remain aligned with the generator's overall commercial objectives.
The goal is not simply to sell power - it is to allocate power in the way that delivers the greatest overall portfolio value.
Below is a screenshot from our P2P Energy Trading Platform, illustrating how buyers and sellers can submit prices for each half-hour period. Each party has the flexibility to accept or reject opportunities dynamically as market conditions evolve.
Corporate PPAs and direct wire arrangements can both be highly effective solutions.
However, they typically involve direct one-to-one relationships between generator and consumer.
This can create challenges around:
By contrast, P2P operates within a broader ecosystem of buyers and sellers connected through the existing electricity grid. This creates greater flexibility, allowing participants to adapt as generation patterns, consumption requirements and commercial priorities change.
For many generators, this provides an additional option alongside existing contractual arrangements, rather than a substitute for them.
The most important idea in this article is simple: P2P gives existing commercial teams access to additional choices.
Rather than relying on a single destination for every unit of exported power, they can potentially access multiple commercial opportunities and apply allocation rules that reflect their wider objectives.
The result is greater flexibility and greater optionality, whilst maintaining control within the existing commercial and decision-making structure.
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Next in the Series - P2P for Large AD Generators: If commercial teams have access to multiple potential destinations for their power, the next question becomes: How can these options be used to create additional value?Read the next article - Unlocking Additional Value Through Smarter Generation and Allocation, or check the full series here. |