Profitability of Energy Supply Contracting and Energy Sharing Concepts in a Neighborhood Energy Community: Business Cases for Austria

Carolin Monsberger, Bernadette Fina and Hans Auer
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Carolin Monsberger: Energy Economics Group (EEG), Technische Universität Wien, Gusshausstraße 25-29, 1040 Vienna, Austria
Bernadette Fina: Energy Economics Group (EEG), Technische Universität Wien, Gusshausstraße 25-29, 1040 Vienna, Austria
Hans Auer: Energy Economics Group (EEG), Technische Universität Wien, Gusshausstraße 25-29, 1040 Vienna, Austria

Energies, 2021, vol. 14, issue 4, 1-27

Abstract: To ensure broad application of renewable and energy-efficient energy systems in buildings and neighborhoods, profitable business models are vital. Energy supply contracting helps building residents to overcome the barrier of high upfront investment costs while additionally reducing risks related to energy-saving mechanisms. This study examines profitability for energy contractors in a variety of business cases that simultaneously ensure energy cost savings for the residents. A mixed-integer linear optimization model is developed for a neighborhood energy community, consisting of three buildings with diverse usages. In the process, the optimum capacities of building-attached and building-integrated photovoltaics, a heat pump and a gas-fired mini combined heat and power unit are determined to cover the energy community’s electricity and heat load. Results show that cross-domain contracting within energy communities is highly profitable for both, the contractor and the residents, while the extent depends on the accounting method, assumed interest rate and depreciation time. The additional application of energy-efficiency measures in/on the buildings, constituting a combination of energy supply and energy performance contracting, further increases profitability. The investigation of several sensitivities shows that high grid energy costs for electricity and gas enhance profitability of local energy technologies, leading to an increase in optimal technology capacities.

Keywords: energy supply contracting; energy sharing; neighborhood energy community; profitability; mixed-integer linear programing optimization (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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