Introducing a co-operative-specific business model: The poles of profit and community and their impact on organizational models of energy co-operatives

Abstract

Abstract The public participation in the energy turnaround resulted in the foundation of many energy co-operatives (ECs) which are predominantly active in photovoltaics. Commonly, the business models of energy co-operatives are designed based on traditional (profit-oriented) concepts from business economics. However, these show their limitations when brought together with co-operative-specific characteristics. The aim of this research is to provide a conceptual framework for energy co-operative business models, meeting the co-operative’s organizational dichotomy of market orientation on one side and community orientation on the other. By synthesizing the relevant theories of business models, co-operatives, and management paradigms, a new business model framework for energy co-operatives is developed. Ultimately, three types of co-operative business models can be distinguished, depending on the members’ roles as well as their corresponding (in-)efficiencies.