Renewable Electricity Business Models in a Post Feed-in Tariff Era

Title data

Rövekamp, Patrick ; Schöpf, Michael ; Wagon, Felix ; Weibelzahl, Martin ; Fridgen, Gilbert:
Renewable Electricity Business Models in a Post Feed-in Tariff Era.
In: Energy. Vol. 216 (2021) . - 119228.
ISSN 1873-6785
DOI: https://doi.org/10.1016/j.energy.2020.119228

Project information

Abstract in another language

newable electricity sources (RESs), worldwide energy
policy makers have introduced fixed feed-in tariffs (FITs). However, FITs typically expire after
a limited time period. Due to the intermittent electricity supply of RES, market distortions, and
insufficient flexibility options, exclusive participation in wholesale electricity markets might
not be a viable business model for RES that no longer receive a FIT. Thus, it remains unclear
which RES business models (RBMs) may enable a viable operation for RES in the post FIT
era. To close this research gap, we present a typology encompassing five RBM archetypes:
wholesale electricity market (1), physical power purchase agreements (2), nonphysical power
purchase agreements (3), self-consumption (4), and on-site power-2-X (5). The typology
includes three additional service layers, which may enhance the profitability of RBM
archetypes by opening up additional revenue streams: infrastructure services (1), electricity
storage services (2), and ancillary services (3). We highlight the need for new approaches to
quantify the viability RBM archetypes and services layers under different regulatory,
technological, and market conditions. To prevent the imminent decommissioning of existing
RESs, policy makers must shape the next era of the energy transition, weighting the
implications of market-based and intervention-based energy policy approaches.