Business Models Overview
This section identifies state-of-the-art business models for SP2, detailing potential technologies, funding mechanisms, governance, and procurement models. Examples from ASCEND’s lighthouse and multiplier cities illustrate how these business models can be implemented and adapted to various urban contexts.
Description
- An energy community that produces and sells renewable energy through collectively owned and operated systems such as solar PV, solar thermal, wind turbines, and energy storage.
- Costs, benefits, and responsibilities are shared among participants, with energy either used for self-consumption or sold to the local grid.
Benefits
- Self-consumption results in electricity savings, while excess energy sold to the grid generates additional revenue, contributing to overall cost savings and efficiency.
- Optimization of demand-side management enhances the load factor of equipment and operational hours.
Governance and Procurement
- Governed by national control points (NCP) and subject to regulations set by national authorities overseeing local grid management.
- Typical procurement procedures include Wholesale Contracts (WC) and Competitive Procurement Requests (CCPR).
Description
- Members of an energy community share renewable energy among themselves, selling surplus energy to the grid under regulated reimbursement schemes.
- Revenue is generated through savings on energy bills and potential feed-in tariffs.
Benefits
- Encourages the efficient use of locally produced renewable energy, reducing dependency on external energy sources and enhancing community resilience.
- Financial incentives like savings on energy bills or reimbursements from energy suppliers provide economic benefits.
Governance and Procurement
- Managed by national control points (NCP) to ensure compliance with energy sharing regulations.
- Procurement procedures include WC and CCPR.
Description
- The energy community owns and operates its own distribution grid, managing the microgrid infrastructure collectively.
- Revenue is generated from user fees, energy sales, peer-to-peer trading, and grid services.
Benefits
- Empowers communities to manage their own energy distribution, increasing local control and potentially reducing energy costs.
- Participation in the energy market and provision of grid services can create additional revenue streams.
Governance and Procurement
- Governed by national control points (NCP).
- Procurement procedures include WC and CCPR.
Description
- Building owners lease their roofs or land for renewable energy installations, which are owned or financed by another party, typically a financial institution.
- Contractors install and maintain renewable energy devices, like solar panels, providing building owners with energy benefits without upfront investment.
Benefits
- Building owners benefit from renewable energy without the need for capital investment, while contractors gain financial incentives and potential participation in the energy market.
- This model is cost-effective for state and local governments to finance energy upgrades.
Description
- These communities are legal entities based on voluntary participation, controlled by members who are individuals, cooperatives, local authorities, or small enterprises.
- They engage in energy production, supply, and financing collective renewable energy projects.
Benefits
- Members benefit from energy savings, potential revenue from excess energy, and a yearly discount on their energy bills due to collective financing of renewable projects.
- Promotes a 100% renewable energy model and active participation in the energy value chain.
Governance and Procurement
- Governance models include city management (CM), special purpose vehicles (SPV), and national control points (NCP).
- Procurement procedures include WC and CCPR.
Description
- These non-profit entities provide services such as solar-as-a-service and heat-as-a-service, potentially combining energy projects with renovation efforts.
- Communities may offer mobility services and participate in flexibility markets, optimizing charging patterns and peak shaving.
Benefits
- Revenue is generated through grid services, storage optimization, and participation in the energy market.
- Enhances community resilience and provides cost savings from peak shaving and efficient energy use.
Governance and Procurement
- Governed by city management (CM), special purpose vehicles (SPV), and national control points (NCP).
- Procurement procedures include WC, CCPR, and CCPU.
This comprehensive overview demonstrates how various digital tools and technologies can be integrated into different business models, each offering unique benefits and monetization strategies while optimizing urban management and services in energy communities and prosumer contexts.