Investigating Preconditions for Sustainable Renewable Energy Product–Service Systems in Retail Electricity Markets

Widha Kusumaningdyah, Tetsuo Tezuka and Benjamin C. McLellan
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Widha Kusumaningdyah: Department of Industrial Engineering, Faculty of Engineering, University of Brawijaya, Malang 65145, Indonesia
Tetsuo Tezuka: Graduate School of Energy Science, Kyoto University, Kyoto 606-8501, Japan
Benjamin C. McLellan: Graduate School of Energy Science, Kyoto University, Kyoto 606-8501, Japan

Energies, 2021, vol. 14, issue 7, 1-21

Abstract: Energy transitions are complex and involve interrelated changes in the socio-technical dimensions of society. One major barrier to renewable energy transitions is lock-in from the incumbent socio-technical regime. This study evaluates Energy Product–Service Systems (EPSS) as a renewable energy market mechanism. EPSS offer electricity service performance instead of energy products and appliances for household consumers. Through consumers buying the service, the provider company is enabled to choose, manage and control electrical appliances for best-matched service delivery. Given the heterogenous market players and future uncertainties, this study aims to identify the necessary conditions to achieve a sustainable renewable energy market. Simulation-Based Design for EPSS framework is implemented to assess various hypothetical market conditions’ impact on market efficiency in the short term and long term. The results reveal the specific market characteristics that have a higher chance of causing unexpected results. Ultimately, this paper demonstrates the advantage of implementing Simulation-Based Design for EPSS to design retail electricity markets for renewable energy under competing market mechanisms with heterogenous economic agents.

Keywords: Energy Product–Service Systems; renewable energy; energy transition; retail market (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 (2)

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