Abstract

At the beginning of 2019, the German Environment Agency established the System for Guarantees of Regional Origin (GRO). With the help of the GROs, energy providers can show that a certain proportion or a certain amount of electricity originates from the region. Even without GROs, some energy providers advertise the regionality of their electricity tariffs. This trend raises the question of how to assess regional electricity in economic terms from a provider's perspective. In addition, the question arises whether and to what extent the marketing of regional electricity generation from renewables opens up new revenue streams for plant operators and direct marketers. Therefore, we conducted expert interviews with 17 representatives from energy supply companies (sample 1) and six representatives of direct marketing companies (sample 2). The interviews revealed that many energy providers are currently following the trend to offer regional electricity tariffs. According to the experts, especially the corporate image of municipal energy providers seems to be consistent with the product claims of regional electricity. Yet, almost all interviewees see regional electricity in its current form as a niche product, which it will most likely remain if no regulatory changes are made in the future, e.g. discounts or subsidies for regional electricity. The current regulatory framework is accompanied by financial disadvantages for plant operators, direct marketing companies and energy providers, which results in regional electricity being marketed as a premium product to end customers. These economic conditions, in combination with further obstacles on the sales side (e.g., the low involvement nature of electricity), make regional electricity unattractive for many customers, according to experts.

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