Community-Based Virtual Power Plants: Against All Odds?

Abstract

Based on a European project entitled “Community-based Virtual Power Plants’ (Interreg 2017–2010) this paper discusses opportunities for community energy projects—focusing on the example of community-based virtual power plants. Using a business model canvas as heuristic and the Dutch demonstration case as an example, we show how a business model following a community logic is unfeasible in practice. The current institutional context compels community based cVPP initiatives to partially abandon such community-based values, in order to be able to survive in the energy services market. It is concluded that more attention is needed for institutional change since the current institutional bias that hinders cVPP projects is also hindering a more inclusive energy transition.

Virtual power plant challenges, opportunities and targets analysis in the current electricity markets

“…The simulation results demonstrated that this model is beneficial in maximizing profit and minimizing emissions, which has a favorable influence on the environment. The authors of [14] presented a community-based VPP business model. It was found that the institutional and regulatory frameworks in place today provide significant challenges for the business model.…”