Business Models for SPENs

Business Models for SPENs

Innovation type: Instruction (Guidelines)

What is this innovation about?

The aim is to develop and evaluate business models), focusing on long-term viability and the generation of potential revenue streams, particularly from surplus energy production for Sustainable Plus Energy Neighbourhoods (SPENs). The business cases address five business model formulations. These include local market trading, peer-to-peer (P2P) energy trading, power purchase agreements (PPAs), and positioning SPENs as retailers or aggregators. These business cases provide insights into potential revenue sources and relevant financial strategies that are suitable for SPENs.

What kind of challenges it will solve if deployed widely

The aim is to propose viable business models for SPENs that can support full commercial deployment by identifying emerging business cases, quantifying revenues, and cost-benefits, and acknowledging the driving factors in different climate zones, policy and geographical contexts. These business models are designed to capture and demonstrate the value of reducing energy demand and ensure that key players involved, as in utilities, building owners, developers, and investors achieve meaningful returns on their investments.

The following users will find this innovation useful:

The users who could find this innovation useful include utility companies, end-users (e.g., residents of SPENs), private and social housing sectors, investors in renewable energy installations, and stakeholders involved in energy retail or aggregation. The business models identified cater to a broad spectrum of stakeholders by offering diversified revenue streams, promoting energy independence, and enhancing community resilience against energy market fluctuations.

How has syn.ikia project impacted the development of this solution/ process/ tool?

At D6.6 it has been conducted a techno-economic analysis across four different European climates—Austria, the Netherlands, Spain, and Norway. This analysis has been fundamental in providing some insights into the operational and financial viability of various SPEN models, thereby highlighting the practical applications and benefits of renewable energy integration at the neighbourhood level.

This innovation suggests several viable business models for trading surplus energy. Each of these models addresses aspects such as transaction management, demand forecasting, risk balancing, and market participation.

The simulation of technologies such as photovoltaic (PV) panels, battery energy storage systems (BESS), and energy management softwares suggest several viable business models to optimize energy production, consumption, and storage. These simulations can be useful for evaluating the potential and improving the overall efficiency and reliability of SPENs, thus increasing their attractiveness for market deployment.

How can this innovation be used beyond syn.ikia project?

After the syn.ikia project concludes, these cases and simulations can continue to be utilized by extending its principles and models to other SPENs and energy communities.

Contact persons:
Pedro Crespo del Granado, NTNU
For more information, please see D6.6: Evaluation of existing business models as well as identification and design of novel business models, https://www.synikia.eu/resource-types/technical-reports/