Peer-to-Peer Electricity Trading Between Nanogrids in Madagascar

This paper presents a techno-economic analysis of implementing peer-to-peer (P2P) electricity trading between nanogrids located in rural areas of Madagascar. The study focuses on four real-life nanogrids powered by solar panels and batteries and analyzes three different scenarios: the reference case, the isolated case and the P2P trading case. In the isolated case the size of solar panels and batteries is reduced for each nanogrid, however without trading between the nanogrids. This results in a significantly reduced investment break-even time, but at the cost of unmet load. In contrast, in the P2P trading case, there is no load curtailment with the same solar and battery sizes as in the isolated case and the same profitability could still be met due to trading surplus energy between the nanogrids. This study, conducted in the rural African context of nanogrids, reveals the potential for P2P trading to increase the financial viability of interconnected nanogrids into microgrids while reducing curtailed energy. The market design for interconnected nanogrids is sensitive to the trading tariff and the investment in solar and battery systems. The results provide an outlook of different business models that can shape the coordination of nanogrids.