How Decentralized Energy Trading Actually Works

We are going to explain how a virtual electricity purchase and sale transaction works between two users.

First, you must choose whether you are going to buy or sell energy.

If you decide to buy, it means that the agreed price is the one you will pay to the other party.

If you decide to sell, then it will be the price you will be paid.

You must define this before the time when the energy prices will be published by the market operator.

You must also choose the market and the area where the liquidation will be carried out.

Remember that a day has twenty four hours, therefore there will be twenty four prices per day. So you must choose whether you buy or sell on peak from seven to twenty two hours, off peak from one to six hours, and from twenty three to twenty four or twenty four seven, which are literally the twenty four hours of the day.

Once the price of the energy published by the market operator is released, the average price will be taken according to your choice on peak, off peak, or twenty four seven of the market and the chosen zone.

If you choose to buy, then you will receive a payment according to the price of the energy in the market.

If you decide to sell, then you will be charged the price of the energy in the market.

Before the transaction, both parties deposited their maximum possible loss.

So if the price is lower than the agreed price, then whoever buys will have a virtual loss and whoever sells will have a gain.

If the result of the price is higher than the agreed price, then whoever sells will have a virtual loss and whoever buys will have a gain.

The gain or loss is virtual because both parties do not know if behind the transaction users have a physical position.

That is, if they are paying you the market price for your surplus as a generator, or they are charging you as a consumer in your receipt of lite.