Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers

The European energy transition increasingly requires flexibility to ensure reliable operation of the electricity system, making use of demand response, a promising concept. With technological advances in the fields of big data analysis and the internet of things, small- and medium-sized prosumers co...

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Autores principales:	Guntram Pressmair, Christof Amann, Klemens Leutgöb
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	business model demand response flexibility prosumers economic assessment Technology T
Acceso en línea:	https://doaj.org/article/b204a85b73c24f14a90997306729e1b2
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id	oai:doaj.org-article:b204a85b73c24f14a90997306729e1b2
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spelling	oai:doaj.org-article:b204a85b73c24f14a90997306729e1b22021-11-11T15:53:11ZBusiness Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers10.3390/en142170851996-1073https://doaj.org/article/b204a85b73c24f14a90997306729e1b22021-10-01T00:00:00Zhttps://www.mdpi.com/1996-1073/14/21/7085https://doaj.org/toc/1996-1073The European energy transition increasingly requires flexibility to ensure reliable operation of the electricity system, making use of demand response, a promising concept. With technological advances in the fields of big data analysis and the internet of things, small- and medium-sized prosumers could also provide flexibility services through aggregators. A lot of conceptual work has been conducted recently to formulate business models in this context, but their viability still remains unclear. In this paper, a quantitative validation is conducted of two business models that are frequently proposed in the scientific discussion. The aim of this work is to explore the economic limits of these business models and show under which conditions they can be profitable for small- and medium-sized prosumers. For this purpose, a multi-level contribution margin calculation for several scenarios, customer segments and target markets is conducted. The results show that the profitability for the participation of small loads is still very low under current market conditions. Especially for household consumers, transaction costs are too high to be covered by the revenues. Considering the quantitative results, in the future profitable business cases can only be expected for medium-sized tertiary consumers.Guntram PressmairChristof AmannKlemens LeutgöbMDPI AGarticlebusiness modeldemand responseflexibilityprosumerseconomic assessmentTechnologyTENEnergies, Vol 14, Iss 7085, p 7085 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	business model demand response flexibility prosumers economic assessment Technology T
spellingShingle	business model demand response flexibility prosumers economic assessment Technology T Guntram Pressmair Christof Amann Klemens Leutgöb Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers
description	The European energy transition increasingly requires flexibility to ensure reliable operation of the electricity system, making use of demand response, a promising concept. With technological advances in the fields of big data analysis and the internet of things, small- and medium-sized prosumers could also provide flexibility services through aggregators. A lot of conceptual work has been conducted recently to formulate business models in this context, but their viability still remains unclear. In this paper, a quantitative validation is conducted of two business models that are frequently proposed in the scientific discussion. The aim of this work is to explore the economic limits of these business models and show under which conditions they can be profitable for small- and medium-sized prosumers. For this purpose, a multi-level contribution margin calculation for several scenarios, customer segments and target markets is conducted. The results show that the profitability for the participation of small loads is still very low under current market conditions. Especially for household consumers, transaction costs are too high to be covered by the revenues. Considering the quantitative results, in the future profitable business cases can only be expected for medium-sized tertiary consumers.
format	article
author	Guntram Pressmair Christof Amann Klemens Leutgöb
author_facet	Guntram Pressmair Christof Amann Klemens Leutgöb
author_sort	Guntram Pressmair
title	Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers
title_short	Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers
title_full	Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers
title_fullStr	Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers
title_full_unstemmed	Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers
title_sort	business models for demand response: exploring the economic limits for small- and medium-sized prosumers
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/b204a85b73c24f14a90997306729e1b2
work_keys_str_mv	AT guntrampressmair businessmodelsfordemandresponseexploringtheeconomiclimitsforsmallandmediumsizedprosumers AT christofamann businessmodelsfordemandresponseexploringtheeconomiclimitsforsmallandmediumsizedprosumers AT klemensleutgob businessmodelsfordemandresponseexploringtheeconomiclimitsforsmallandmediumsizedprosumers
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Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers

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