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Business Models for Peer-to-Peer Energy Trading in Germany Based on Households’ Beliefs and Preferences

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  • Karami, Mahdi

    (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

  • Madlener, Reinhard

    (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

Abstract

With the expansion of distributed energy resources and the phaseout of the feed-in-tariff scheme in Germany, self-consumption and electricity sharing within a community of prosumers are becoming more profitable. This paper derives optimal business models for a sustainable peer-to-peer (P2P) energy trading platform (ETP) in Germany. It examines data from 1618 residential households collected from an online survey, including 1311 consumers and 307 prosumers. Our research aims to better understand under what circumstances these households would participate in a P2P ETP and how business models can support such platforms to create added value for private households. Therefore, households’ beliefs concerning their attitudes, perceived behavioral control, and subjective norms are analyzed according to the Theory of Planned Behavior, and business models are designed correspondingly. In order to evaluate the developed business models’ effectiveness and usefulness, we apply them to fifteen existing pioneer energy communities and platforms in Germany. We find that cost-saving and other financial benefits for households must be considered to be the primary value proposition offered by a service provider. Business models which help households to become more electricity self-sufficient and to consume less electricity from the public grid are the second-most important source of value creation from a household’s point of view. By connecting the business models and the P2P prosuming market model, recommendations for companies, policy-makers, and regulatory authorities are made.

Suggested Citation

  • Karami, Mahdi & Madlener, Reinhard, 2021. "Business Models for Peer-to-Peer Energy Trading in Germany Based on Households’ Beliefs and Preferences," FCN Working Papers 3/2021, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised Oct 2021.
    • Handle: RePEc:ris:fcnwpa:2021_003
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    3. Zeng, Yu & Wei, Xuan & Yao, Yuan & Xu, Yinliang & Sun, Hongbin & Kin Victor Chan, Wai & Feng, Wei, 2023. "Determining the pricing and deployment strategy for virtual power plants of peer-to-peer prosumers: A game-theoretic approach," Applied Energy, Elsevier, vol. 345(C).
    4. Francesca Andreolli & Chiara D'Alpaos & Peter Kort, 2023. "Does P2P Trading Favor Investments in PV-Battery Systems?," Working Papers 2023.02, Fondazione Eni Enrico Mattei.
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    6. Liaqat Ali & M. Imran Azim & Nabin B. Ojha & Jan Peters & Vivek Bhandari & Anand Menon & Vinod Tiwari & Jemma Green & S.M. Muyeen, 2023. "Balancing Usage Profiles and Benefitting End Users through Blockchain Based Local Energy Trading: A German Case Study," Energies, MDPI, vol. 16(17), pages 1-18, August.
    7. Schöpper, Yannick & Digmayer, Claas & Bartusch, Raphaela & Ebrahim, Ola & Hermens, Sarah & Nejabat, Razieh & Steireif, Niklas & Wendorff, Jannik & Jakobs, Eva-Maria & Lohrberg, Frank & Madlener, Reinh, 2023. "Developing a Niche Readiness Level Model to Assess Socio-Economic Maturity: The Case of DC Technologies in the Transition to Flexible Electrical Networks," FCN Working Papers 11/2023, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    8. Hassan Khazaei & Hossein Aghamohammadloo & Milad Habibi & Mehdi Mehdinejad & Amin Mohammadpour Shotorbani, 2023. "Novel Decentralized Peer-to-Peer Gas and Electricity Transaction Market between Prosumers and Retailers Considering Integrated Demand Response Programs," Sustainability, MDPI, vol. 15(7), pages 1-18, April.
    9. Jun Dong & Xihao Dou & Dongran Liu & Aruhan Bao & Dongxue Wang & Yunzhou Zhang & Peng Jiang, 2023. "Benefit Sharing of Power Transactions in Distributed Energy Systems with Multiple Participants," Sustainability, MDPI, vol. 15(11), pages 1-23, June.
    10. Schmitt, Carlo & Schumann, Klemens & Kollenda, Katharina & Blank, Andreas & Rebenaque, Olivier & Dronne, Théo & Martin, Arnault & Vassilopoulos, Philippe & Roques, Fabien & Moser, Albert, 2022. "How will local energy markets influence the pan-European day-ahead market and transmission systems? A case study for local markets in France and Germany," Applied Energy, Elsevier, vol. 325(C).
    11. Adewole, Ayooluwa & Shipworth, Michelle & Lemaire, Xavier & Sanderson, Danielle, 2023. "Peer-to-Peer energy trading, independence aspirations and financial benefits among Nigerian households," Energy Policy, Elsevier, vol. 174(C).
    12. Yap, Kah Yung & Chin, Hon Huin & Klemeš, Jiří Jaromír, 2023. "Blockchain technology for distributed generation: A review of current development, challenges and future prospect," Renewable and Sustainable Energy Reviews, Elsevier, vol. 175(C).
    13. Shama Naz Islam & Aiswarya Sivadas, 2022. "Optimisation of Buyer and Seller Preferences for Peer-to-Peer Energy Trading in a Microgrid," Energies, MDPI, vol. 15(12), pages 1-29, June.
    14. Liu, Yinyan & Ma, Jin & Xing, Xinjie & Liu, Xinglu & Wang, Wei, 2022. "A home energy management system incorporating data-driven uncertainty-aware user preference," Applied Energy, Elsevier, vol. 326(C).
    15. Zhou, Shijie & Cao, Sunliang, 2024. "Co-ordinations of ocean energy supported energy sharing between zero-emission cross-harbour buildings in the Greater Bay Area," Applied Energy, Elsevier, vol. 359(C).
    16. Liu, Xueying & Madlener, Reinhard, 2021. "Economic Benefits of Direct Current Technology for Private Households and Peer-to-Peer Trading in Germany," FCN Working Papers 7/2021, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    17. Maurizio Sibilla & Esra Kurul, 2023. "Towards Social Understanding of Energy Storage Systems—A Perspective," Energies, MDPI, vol. 16(19), pages 1-11, September.
    18. Sima, Catalina Alexandra & Popescu, Claudia Laurenta & Popescu, Mihai Octavian & Roscia, Mariacristina & Seritan, George & Panait, Cornel, 2022. "Techno-economic assessment of university energy communities with on/off microgrid," Renewable Energy, Elsevier, vol. 193(C), pages 538-553.
    19. Kerscher, Selina & Koirala, Arpan & Arboleya, Pablo, 2024. "Grid-optimal energy community planning from a systems perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 199(C).

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    More about this item

    Keywords

    Electricity suppliers; business model innovation; value creation; private customers; electricity self-sufficient;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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