Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models

J.M. Schwidtal*, P. Piccini*, M. Troncia, R. Chitchyan, M. Montakhabi, C. Francis, A. Gorbatcheva, T. Capper, M.A. Mustafa, M. Andoni, V. Robu, M. Bahloul, I.J. Scott, T. Mbavarira, J.M. España, L. Kiesling

*Corresponding author for this work

Research output: Contribution to journalReview article (Academic Journal)peer-review

15 Citations (Scopus)

Abstract

The emergence of peer-to-peer, collective or community self-consumption, and transactive energy concepts gives rise to new configurations of business models for local energy trading among a variety of actors. Much attention has been paid in the academic literature to the transition of the underlying energy system with its macroeconomic market framework. However, fewer contributions focus on the microeconomic aspects of the broad set of involved actors. Even though specific case studies highlight single business models, a comprehensive analysis of emerging business models for the entire set of actors is missing. Following this research gap, this paper conducts a systematic literature review of 135 peer-reviewed journal articles to examine business models of actors operating in local energy markets. From 221 businesses in the reviewed literature, nine macro-actor categories are identified. For each type of market actor, a business model archetype is determined and characterised using the business model canvas. The key elements of each business model archetype are discussed, and areas are highlighted where further research is needed. Finally, this paper outlines the differences of business models for their presence in the three local energy market models. Focusing on the identified customers and partner relationships, this study highlights the key actors per market model and the character of the interactions between market participants.
Original languageEnglish
Article number113273
JournalRenewable and Sustainable Energy Reviews
Volume179
Early online date3 Apr 2023
DOIs
Publication statusPublished - 1 Jun 2023

Bibliographical note

Funding Information:
The author Timothy Capper received financial support from the EPSRC (grant number EP/L016141/1 ) through the Power Networks Centre for Doctoral Training.

Funding Information:
The author Ruzanna Chitchyan received funding from the EPSRC project Refactoring Energy Systems ( EP/R007373/1 ).

Funding Information:
This publication is part of the work of the Global Observatory on Peer-to-Peer, Community Self-Consumption and Transactive Energy Models ( GO-P2P ), a task of the User-Centred Energy Systems Technology Collaboration Programme ( Users TCP ), under the auspices of the International Energy Agency . GO-P2P benefits from the support of Australia, Belgium, Ireland, Italy, the Netherlands, Switzerland, the United Kingdom and United States. GO-P2P is also supported by the EPSRC EnergyREV project EnergyREV ( EP/S031863/1 ).

Funding Information:
The author Mehdi Montakhabi received funding from the Flemish Government through the FWO SBO project SNIPPET S007619 .

Funding Information:
The author Mustafa A. Mustafa received funding from the EPSRC through the project EnnCore EP/T026995/1 , Flemish Government through the FWO SBO project SNIPPET S007619 , and The University of Manchester through DKO Fellowship .

Funding Information:
The author Mohamed Bahloul would like to acknowledge the support of the Department of the Environment, Climate and Communications (DECC) received for the “International Energy Agency Task Go-P2P” project. The authors would like to thank Nicola Sorrentino for his helpful contribution in the early stages of this work.

Funding Information:
The author Anna Gorbatcheva received funding from the EPSRC Centre for Doctoral Training in Energy Demand (LoLo) , grant numbers EP/L01517X/1 and EP/H009612/1

Publisher Copyright:
© 2023

Keywords

  • peer-to-peer
  • self-consumption
  • aggregator
  • consumer
  • prosumer
  • flexibility provision
  • electricity trading
  • business model canvas
  • local energy market
  • transactive energy

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