Emerging business models in local energy markets: a systematic review of peer-to-peer, community self-consumption, and transactive energy models

Schwidtal, J.M. et al. (2023) Emerging business models in local energy markets: a systematic review of peer-to-peer, community self-consumption, and transactive energy models. Renewable and Sustainable Energy Reviews, 179, 113273. (doi: 10.1016/j.rser.2023.113273)

Abstract

The emergence of peer-to-peer, collective or community self-consumption, and transactive energy concepts gives rise to new configurations of business models for local energy trading among a variety of actors. Much attention has been paid in the academic literature to the transition of the underlying energy system with its macroeconomic market framework. However, fewer contributions focus on the microeconomic aspects of the broad set of involved actors. Even though specific case studies highlight single business models, a comprehensive analysis of emerging business models for the entire set of actors is missing. Following this research gap, this paper conducts a systematic literature review of 135 peer-reviewed journal articles to examine business models of actors operating in local energy markets. From 221 businesses in the reviewed literature, nine macro-actor categories are identified. For each type of market actor, a business model archetype is determined and characterised using the business model canvas. The key elements of each business model archetype are discussed, and areas are highlighted where further research is needed. Finally, this paper outlines the differences of business models for their presence in the three local energy market models. Focusing on the identified customers and partner relationships, this study highlights the key actors per market model and the character of the interactions between market participants.

• Item Type: Articles
• Additional Information: This publication is part of the work of the Global Observatory on Peer-to-Peer, Community Self-Consumption and Transactive Energy Models (GO-P2P), a task of the User-Centred Energy Systems Technology Collaboration Programme (Users TCP), under the auspices of the International Energy Agency. GO-P2P benefits from the support of Australia, Belgium, Ireland, Italy, the Netherlands, Switzerland, the United Kingdom and United States. GO-P2P is also supported by the EPSRC EnergyREV project EnergyREV (EP/S031863/1). The author Ruzanna Chitchyan received funding from the EPSRC project Refactoring Energy Systems (EP/R007373/1). The author Mehdi Montakhabi received funding from the Flemish Government through the FWO SBO project SNIPPET S007619. The author Anna Gorbatcheva received funding from the EPSRC Centre for Doctoral Training in Energy Demand (LoLo), grant numbers EP/L01517X/1 and EP/H009612/1. The author Timothy Capper received financial support from the EPSRC (grant number EP/L016141/1) through the Power Networks Centre for Doctoral Training. The author Mustafa A. Mustafa received funding from the EPSRC through the project EnnCore EP/T026995/1, Flemish Government through the FWO SBO project SNIPPET S007619, and The University of Manchester through DKO Fellowship. The author Mohamed Bahloul would like to acknowledge the support of the Department of the Environment, Climate and Communications (DECC) received for the “International Energy Agency Task Go-P2P” project.
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Andoni, Dr Merlinda
• Authors: Schwidtal, J.M., Piccini, P., Troncia, M., Chitchyan, R., Montakhabi, M., Francis, C., Gorbatcheva, A., Capper, T., Mustafa, M.A., Andoni, M., Robu, V., Bahloul, M., Scott, I.J., Mbavarira, T., España, J.M., and Kiesling, L.
• College/School: College of Science and Engineering > School of Engineering > Systems Power and Energy
• Journal Name: Renewable and Sustainable Energy Reviews
• Publisher: Elsevier
• ISSN: 1364-0321
• ISSN (Online): 1879-0690
• Published Online: 03 April 2023
• Copyright Holders: Copyright © 2023 The Authors
• First Published: First published in Renewable and Sustainable Energy Reviews 179:113273
• Publisher Policy: Reproduced under a Creative Commons License