Social and Economic Value in Emerging Decentralized Energy Business Models: A Critical Review

Sophie Adams, Donal Brown, Juan Pablo Cárdenas Álvarez, Ruzanna Chitchyan, Michael J. Fell, Ulf J. J. Hahnel, Kristina Hojckova, Charlotte Johnson, Lurian Klein, Mehdi Montakhabi, Kelvin Say, Abhigyan Singh and Nicole Watson
Additional contact information
Sophie Adams: School of Humanities and Languages, University of New South Wales, Kensington, NSW 2052, Australia
Donal Brown: Science Policy Research Unit (SPRU), University of Sussex, Brighton BN1 9RH, UK
Juan Pablo Cárdenas Álvarez: EnergEIA, Universidad EIA, Envigado 055428, Colombia
Ruzanna Chitchyan: Department of Computer Science, University of Bristol, Bristol BS8 1TH, UK
Michael J. Fell: Energy Institute, University College London, London WC1E 6BT, UK
Ulf J. J. Hahnel: Department of Psychology and Swiss Center for Affective Sciences, University of Geneva, 1205 Geneva, Switzerland
Kristina Hojckova: Department of Technology Management and Economics, Chalmers University of Technology, 41296 Göteborg, Sweden
Charlotte Johnson: Energy Institute, University College London, London WC1E 6BT, UK
Lurian Klein: Sustainable Energy Systems Doctoral Programme, MIT Portugal Initiative, University of Coimbra, 3004-531 Coimbra, Portugal
Mehdi Montakhabi: imec-SMIT, Vrije Universiteit Brussel, 1050 Ixelles, Belgium
Kelvin Say: Energy Transition Hub, University of Melbourne, Parkville, VIC 3010, Australia
Abhigyan Singh: Faculty of Industrial Design Engineering, Delft University of Technology (TU Delft), 2628 CD Delft, The Netherlands
Nicole Watson: Energy Institute, University College London, London WC1E 6BT, UK

Energies, 2021, vol. 14, issue 23, 1-29

Abstract: In recent years, numerous studies have explored the opportunities and challenges for emerging decentralized energy systems and business models. However, few studies have focussed specifically on the economic and social value associated with three emerging models: peer-to-peer energy trading (P2P), community self-consumption (CSC) and transactive energy (TE). This article presents the findings of a systematic literature review to address this gap. The paper makes two main contributions to the literature. Firstly, it offers a synthesis of research on the social and economic value of P2P, CSC and TE systems, concluding that there is evidence for a variety of sources of social value (including energy independence, local benefits, social relationships, environmental responsibility and participation and purpose) and economic value (including via self-consumption of renewable electricity, reduced electricity import costs, and improved electricity export prices). Secondly, it identifies factors and conditions necessary for the success of these models, which include willingness to participate, participant engagement with technology, and project engagement of households and communities, among other factors. Finally, it discusses conflicts and trade-offs in the value propositions of the models, how the three models differ from one another in terms of the value they aim to deliver and some of the open challenges that require further attention by researchers and practitioners.

Keywords: social value; economic value; peer-to-peer electricity trading; community self-consumption; transactive energy; energy business models (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 (11)

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