Legal Framework of Decentralized Energy Business Models in Germany: Challenges and Opportunities for Municipal Utilities

Scheller, Fabian; Johanning, Simon; Seim, Stephan; Schuchardt, Kerstin; Krone, Jonas; Haberland, Rosa; Brückner, Thomas

doi:10.1007/s12398-018-0227-1

Cited by 11 publications

(11 citation statements)

References 12 publications

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“…Since local utilities might not exist in the same meaning in other countries as in Germany, the derivation of the influence strength may turn out differently for these countries. Beyond the German borders, however, the residential PV adoption also opens up new business models (e.g., renting rooftops, direct marketing, community solutions) for utilities [49,86,87].…”

Section: Local and State-or National-level Utility Companiesmentioning

confidence: 99%

“…"Buy down" programs or installation subsidies, however, affect the initial cost of installation through the provision of capital grants and thus lower households' expenses regarding the purchase of a low-carbon technology adoption [91]. Beyond that, support can also be created in the form of laws (e.g., solar-friendly building regulations) or tax incentives (e.g., reduced VAT) [44,58,62,86]. Furthermore, soft loans for low-carbon technology investments can be provided by public funds [44].…”

Section: Federal and State Governmentmentioning

confidence: 99%

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Exploring the Role of Stakeholder Dynamics in Residential Photovoltaic Adoption Decisions: A Synthesis of the Literature

et al. 2020

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Despite the intensive research on residential photovoltaic adoption, there is a lack of understanding regarding the social dynamics that drive adoption decisions. Innovation diffusion is a social process, whereby communication structures and the relations between sender and receiver influence what information is perceived and how it is interpreted. This paper addresses this research gap by investigating stakeholder influences in household decision-making from a procedural perspective, so-called stakeholder dynamics. A literature review derives major influence dynamics which are then synthesized based on egocentric network maps for distinct process stages. The findings show a multitude of stakeholders that can be relevant in influencing photovoltaic adoption decisions of owner-occupied households. Household decision-makers are mainly influenced by stakeholders of their social network like family, neighbors, and friends as well as PV-related services like providers and civil society groups. The perceived closeness and likeability of a stakeholder indicate a higher level of influence because of greater trust involved. Furthermore, the findings indicate that social influence shifts gradually from many different stakeholders to a few core stakeholders later on in the decision-making process. These insights suggest that photovoltaic (PV) adoption may be more reliably predicted if a process perspective is taken into account that not only distinguishes between different stakeholders but considers their dynamic importance along the process stages. In addition, especially time- and location-bound factors affect the influence strength. This clearly shows the importance of local and targeted interventions to accelerate the uptake.

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Section: Local and State-or National-level Utility Companiesmentioning

confidence: 99%

Section: Federal and State Governmentmentioning

confidence: 99%

Exploring the Role of Stakeholder Dynamics in Residential Photovoltaic Adoption Decisions: A Synthesis of the Literature

et al. 2020

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“…The legal context of P2P electricity trading with a focus on European law has been reviewed by van Soest [34], while Eid et al [35] analyse the market integration potential of several European case studies. Following the streams and discussions in literature and media, the concept of local electricity markets is not easily integrated into the current national regulatory framework [34,36]. While from the standpoint of European directives P2P trading would theoretically be realisable, the specific transcription into national laws and acts hinders the implementation of such decentralised trading systems.…”

Section: Background and Literaturementioning

confidence: 99%

“…The results show that due to the higher costs, benefits of the local trade shrink significantly. In order to have any benefits for participating players in a 4 Home Storage & Local Sharing market, the taxes and duties structure would need to be adjusted as argued by Schäfer-Stradowsky and Bachmann [53] and Scheller et al [36]. In their report, von Oppen et al [54] show that trading among neighbours or within a community is highly uneconomic as well as not manageable for small prosumers due to a compact regulatory framework that would lead to high costs as well as a major amount of administrative work.…”

Section: Integration Into the German Regulatory Frameworkmentioning

confidence: 99%

On Distributional Effects in Local Electricity Market Designs—Evidence from a German Case Study

2020

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The European Commission’s call for energy communities has motivated academia to focus research on design and trading concepts of local electricity markets. The literature provides a wide range of conceptual ideas and analyses on the technical and economic framework of single market features such as peer-to-peer trading. The feasible, system-wide integration of energy communities into existing market structures requires, however, a set of legal adjustments to national regulation. In this paper, we test the implications of recently proposed market designs under the current rules in the context of the German market. The analysis is facilitated by a simplistic equilibrium model representing heterogeneous market participants in an energy community with their respective objectives. We find that, on the one hand, these proposed designs are financially unattractive to prosumers and consumers under the current regulatory framework. On the other hand, they even cause distributional effects within the community when local trade and self-consumption are exempt from taxes. To this end, we introduce a novel market design—Tech4all—that counterbalances these effects. With only few legal amendments, it allows for ownership and participation of renewable technologies for all community members independent of their property structure and affluence. Our presented analysis shows that this design has the potential to mitigate both distributional effects and the avoidance of system service charges, while simultaneously increasing end-user participation.

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“…Table 4 shows the total cost of electricity and its cost components for household customers purchasing their electricity from the electricity grid in 2015. A detailed analysis is outlined in [36] . After deduction of the statutory fees and levies (grid fee, value added tax, concession fee, EEG surcharge, electricity tax, cogeneration levy and other levies) the competitive or sales pricing elements remained (profit margin and supplier's cost of purchasing wholesale power on the market).…”

Section: Electricity Tariffsmentioning

confidence: 99%

Provoking Residential Demand Response Through Variable Electricity Tariffs - A Model-Based Assessment for Municipal Energy Utilities

Scheller

Krone

Kühne

et al. 2018

Technol Econ Smart Grids Sustain Energy

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With the suitable infrastructure of information and communication technologies in place, customers are able to perform demand response (DR), meaning that they can decrease or increase their electricity consumption in response to changes in their electricity tariff. In this research, different variable electricity tariffs are designed taking both customer and utility preferences into account. Subsequently, a model-based analysis on the basis of optimization model IRPopt (Integrated Resource Planning and Optimization) is carried out. Electricity customers are exposed to the designed tariffs in order to find out whether variable electricity tariffs are a suitable instrument for municipal energy utilities to exploit the potential laying in residential DR. Loads considered for DR in this work are those of selected electric household appliances and the loads of electric heat pumps. One major contribution of this work is that the assessment differentiates between different types of energy utilities, whose specific generation profiles are taken into account in the design of the variable tariffs. The results show that variable electricity tariffs have a small economic potential. However, customers only benefit if the design of the business model includes a proper compensation mechanism. In this context, successful business models require the direct cooperation of different municipal energy market actors. Furthermore, taking the specific generation profiles of municipal energy utilities into account in the design of variable electricity tariffs helps to increase the energy autonomy of municipalities.

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Legal Framework of Decentralized Energy Business Models in Germany: Challenges and Opportunities for Municipal Utilities

Cited by 11 publications

References 12 publications

Exploring the Role of Stakeholder Dynamics in Residential Photovoltaic Adoption Decisions: A Synthesis of the Literature

Exploring the Role of Stakeholder Dynamics in Residential Photovoltaic Adoption Decisions: A Synthesis of the Literature

On Distributional Effects in Local Electricity Market Designs—Evidence from a German Case Study

Provoking Residential Demand Response Through Variable Electricity Tariffs - A Model-Based Assessment for Municipal Energy Utilities

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