What is the value of peer-to-peer energy trading? A discrete choice experiment with residential electricity users in Colombia

Peer-to-peer (P2P) energy trading is the electricity exchange between end-users with distributed energy resources, mainly photovoltaic panels. In P2P exchanges, electricity supply options can be differentiated by new energy attributes traced with smart meters and digital applications. Given the new range of supply options, energy users' preferences are crucial for designing P2P energy trading business models that engage consumers and advance the energy transition. This work identifies the preferences of a Colombian energy users' segment towards energy attributes in P2P trading. Contributing to a substantial evidence gap in the application of P2P energy trading in Latin America, we conducted a choice experiment with 1101 residential energy end-users in the Aburrá Valley (Medellín, Colombia). We evaluated the following energy attributes: generation source, ownership, location, and destination of profits. The results confirm a differentiated valuation of energy attributes among respondents across population segments. The perceived value of each attribute is represented as marginal willingness-to-pay over the usual energy bill—calculated by analysing choice data with a Mixed Logit Model. The average respondent is willing to pay the most for getting 100 % solar power, followed by a power supply where generation profits go to a social cause. Next in order of importance are energy from cooperative ownership, regional location, and neighbourhood location. Respondents would be willing to pay less for energy owned by an anonymous individual. This article contributes to understanding end-users' values around P2P energy trading and unveiling a potential market segment and preference structure. The results intend to pave the way for further research and the development of P2P energy models, especially in the Global South.