Valuing the value: An affordances perspective on new models in the electricity market

Abstract

Prosumers can actively participate in electricity markets through new market models. Peer-to-peer, community self-consumption, and transactive energy are the three market models which are said to complement traditional electricity markets, enabling prosumers to create and capture value. To date, however, the characteristics of these models and incentivisation opportunities for prosumers cannot be easily distilled. Here, we propose a framework to distinguish between these market models based on involved parties (peers, communities, and grid operators) and traded commodities (electricity and flexibility). Furthermore, we compare the capacity of the different models in value generation for and by prosumers, which extend beyond financial benefits, by differentiation. In doing so, we systematically draw out the value generation potential in the dynamic between market models' capacities and prosumers business models. In doing so, a larger number of prosumers can be engaged and empowered in becoming active market actors, stimulating the ongoing energy transition towards achieving sustainability goals.