This paper proposes a novel tariff regime for peerto-peer energy
trading, with an aim to increase transmission

efficiency and grid stability by penalising long distance power
transactions. In this scheme a portion of the transacted energy is
withheld based on the electrical distance between buying and selling
parties, calculated here according to the Klein Resistance Distance.
This tariff regime is simulated using a dataset of producers and
consumers over a 24-hour period. First, a notional marketplace
equilibrium simulation is performed, in which

consumers can optimally activate demand response resources to exploit
local availability of energy. Consumers are observed to move some demand
away from peak times to make use of local generation availability. These
simulated market out-turns are then used as inputs to a time series
power flow analysis, in order to evaluate the network's electrical
performance. The regime is found to decrease grid losses and the
magnitude of global voltage angle separation. However, the metric
whereby taxes are calculated is found to be too skewed in the utility's
favour and may discourage adoption of the peer-to-peer system.

The method also attempts to encourage regulatory adoption

by existing grid operators and utilities. Some counter-intuitive
allocations of tokenised energy occur, owing to specific consumers'
demand profiles and proximity to generators.