LAPSE:2023.29598
Published Article

LAPSE:2023.29598
Profitability of Energy Supply Contracting and Energy Sharing Concepts in a Neighborhood Energy Community: Business Cases for Austria
April 13, 2023
Abstract
To ensure broad application of renewable and energy-efficient energy systems in buildings and neighborhoods, profitable business models are vital. Energy supply contracting helps building residents to overcome the barrier of high upfront investment costs while additionally reducing risks related to energy-saving mechanisms. This study examines profitability for energy contractors in a variety of business cases that simultaneously ensure energy cost savings for the residents. A mixed-integer linear optimization model is developed for a neighborhood energy community, consisting of three buildings with diverse usages. In the process, the optimum capacities of building-attached and building-integrated photovoltaics, a heat pump and a gas-fired mini combined heat and power unit are determined to cover the energy community’s electricity and heat load. Results show that cross-domain contracting within energy communities is highly profitable for both, the contractor and the residents, while the extent depends on the accounting method, assumed interest rate and depreciation time. The additional application of energy-efficiency measures in/on the buildings, constituting a combination of energy supply and energy performance contracting, further increases profitability. The investigation of several sensitivities shows that high grid energy costs for electricity and gas enhance profitability of local energy technologies, leading to an increase in optimal technology capacities.
To ensure broad application of renewable and energy-efficient energy systems in buildings and neighborhoods, profitable business models are vital. Energy supply contracting helps building residents to overcome the barrier of high upfront investment costs while additionally reducing risks related to energy-saving mechanisms. This study examines profitability for energy contractors in a variety of business cases that simultaneously ensure energy cost savings for the residents. A mixed-integer linear optimization model is developed for a neighborhood energy community, consisting of three buildings with diverse usages. In the process, the optimum capacities of building-attached and building-integrated photovoltaics, a heat pump and a gas-fired mini combined heat and power unit are determined to cover the energy community’s electricity and heat load. Results show that cross-domain contracting within energy communities is highly profitable for both, the contractor and the residents, while the extent depends on the accounting method, assumed interest rate and depreciation time. The additional application of energy-efficiency measures in/on the buildings, constituting a combination of energy supply and energy performance contracting, further increases profitability. The investigation of several sensitivities shows that high grid energy costs for electricity and gas enhance profitability of local energy technologies, leading to an increase in optimal technology capacities.
Record ID
Keywords
energy sharing, energy supply contracting, mixed-integer linear programing optimization, neighborhood energy community, profitability
Subject
Suggested Citation
Monsberger C, Fina B, Auer H. Profitability of Energy Supply Contracting and Energy Sharing Concepts in a Neighborhood Energy Community: Business Cases for Austria. (2023). LAPSE:2023.29598
Author Affiliations
Monsberger C: Energy Economics Group (EEG), Technische Universität Wien, Gusshausstraße 25-29, 1040 Vienna, Austria; Center for Energy, AIT Austrian Institute of Technology, Integrated Energy Systems, Giefinggasse 4, 1210 Vienna, Austria [ORCID]
Fina B: Energy Economics Group (EEG), Technische Universität Wien, Gusshausstraße 25-29, 1040 Vienna, Austria; Center for Energy, AIT Austrian Institute of Technology, Integrated Energy Systems, Giefinggasse 4, 1210 Vienna, Austria [ORCID]
Auer H: Energy Economics Group (EEG), Technische Universität Wien, Gusshausstraße 25-29, 1040 Vienna, Austria [ORCID]
Fina B: Energy Economics Group (EEG), Technische Universität Wien, Gusshausstraße 25-29, 1040 Vienna, Austria; Center for Energy, AIT Austrian Institute of Technology, Integrated Energy Systems, Giefinggasse 4, 1210 Vienna, Austria [ORCID]
Auer H: Energy Economics Group (EEG), Technische Universität Wien, Gusshausstraße 25-29, 1040 Vienna, Austria [ORCID]
Journal Name
Energies
Volume
14
Issue
4
First Page
921
Year
2021
Publication Date
2021-02-09
ISSN
1996-1073
Version Comments
Original Submission
Other Meta
PII: en14040921, Publication Type: Journal Article
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LAPSE:2023.29598
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https://doi.org/10.3390/en14040921
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