Digital Business Models for Local and Micro Power Markets

Local power markets constitute one of the most radical transformations in the current energy system: integrating renewable energy and selling it at the source of generation. This chapter focuses on business model opportunities in local power markets and on the factors that predict the models' diffusion and acceptance by local citizens. Based on EMPOWER's local power market design, it describes two ideal-type business models. The first focuses on a platform that is hosted by a distribution system operator. It outlines a business model in which a host company acts as platform provider for individual customers. The second model showcases a business model that targets cooperatives as the customer segment and host of the platform. Social acceptance is a major predictor of business model success. An important aspect of more-sided digital business models is the process of co‐creating value.