Business Model Selection for Community Energy Storage: A Multi Criteria Decision Making Approach

Prabha Bhola (), Alexandros-Georgios Chronis, Panos Kotsampopoulos () and Nikos Hatziargyriou
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Prabha Bhola: Rajendra Mishra School of Engineering Entrepreneurship, Indian Institute of Technology Kharagpur, Kharagpur 721302, West Bengal, India
Alexandros-Georgios Chronis: School of Electrical and Computer Engineering, National Technical University of Athens, 15780 Athens, Greece
Panos Kotsampopoulos: School of Electrical and Computer Engineering, National Technical University of Athens, 15780 Athens, Greece
Nikos Hatziargyriou: School of Electrical and Computer Engineering, National Technical University of Athens, 15780 Athens, Greece

Energies, 2023, vol. 16, issue 18, 1-30

Abstract: This paper explores business models for community energy storage (CES) and examines their potential and feasibility at the local level. By leveraging Multi Criteria Decision Making (MCDM) approaches and real-world case studies in Europe and India, it presents insights into CES deployment opportunities, challenges, and best practices. Different business models, including community energy cooperatives, utility–community partnerships, demand response, energy services, and market mechanisms, are analyzed. The proposed method combines the MCDM method PROMETHEE II with the fuzzy set theory to obtain a complete CES business model ranking, addressing project uncertainties. The analysis emphasizes CES’s role in balancing local renewable energy supply and demand, facilitating energy sharing, and achieving energy independence. Findings prioritize models like Community Cooperative, Energy Arbitrage, and Energy Arbitrage Peak Shaving for CES with renewables. Environmental benefits include reduced diesel use and greenhouse gas emissions. Efficient cooperatives are advocated to recover costs and enable competitive energy prices. The paper highlights the need for novel value propositions to boost the energy transition in local communities. This research contributes to the discourse on CES business models, fostering knowledge exchange and promoting effective strategies for sustainable energy systems.

Keywords: community; storage; business models; MCDM; energy; Europe; India (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: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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