„Customer Stratification and Different Concepts of Decentralization“

Members of the Energy & Climate Department made a contribution in the newly published anthology „Consumer, Prosumer, Prosumager“. In the chapter „Customer stratification and different concepts of decentralization“, Dierk Bauknecht, Joß Bracker, Franziska Flachsbarth, Christoph Heinemann, Dominik Seebach and Moritz Vogel disentangle the debate on decentralization in the electric power sector – examining what is meant by decentralization in different contexts – using Germany as the case study.

The authors examine different technical dimensions of decentralization, such as distributed generation close to demand as well as concepts to balance generation and demand locally. The motivation for these concepts can be wide ranging, from economic advantages, increased system resilience to better participation in the energy system. The chapter presents insights into the actual effects of decentralization on these objectives. Depending on the type of decentralization and the objective that is to be achieved, there are also different regulatory requirements.

The chapter’s main insight is to highlight how decentralization interacts with new roles for consumers in the transformation of the energy system.

About „Consumer, Prosumer, Prosumager“:

Consumers, Prosumers, Prosumagers: How Customer Stratification will Disrupt the Utility Business Model examines customer stratification in the electric power sector, arguing that it is poised to become one of the fundamental drivers of the 21st century power network as distributed energy generation, storage, sharing and trading options become available at scale. The book addresses the interface and the relationship between key players and their impacts on incumbent and disruptive service providers. Topics covered include innovations that lead to consumer stratification, regulatory policy, the potential of service, the speed and spread of stratification, and a review of potential business models and strategies.

The work also covers the evolution and potential end-states of electricity service provision, from its basis in current pilot programs as distributed generation scales and its potential to supplant industry norms.

More information: „Consumer, Prosumer, Prosumager: How Service Innovations Will Disrupt the Utility Business Model“, 1st Edition, Editor: Fereidoon Sioshansi, © Academic Press / Elsevier 2019

About the authors:
Dierk Bauknecht is a senior researcher with the Oeko-Institut’s Energy and Climate Division. He has led a broad range of national and European projects on the integration of renewables into the power system, the governance of electricity system transformation, infrastructure regulation and smart grids, flexibility options and market design, power system modeling, European renewables policy.
Joss Bracker was a researcher with the Oeko-Institut’s Energy and Climate Division in Freiburg, Germany. He has been working in several research and consultancy projects on national and European level. His fields of expertise are market integration of renewable energy, trading and markets for renewable electricity, electric mobility and voluntary green electricity markets (e.g., Guarantees of Origin, eco-labeling, electricity disclosure).
Franziska Flachsbarth is a research associate at the Freiburg branch of the Oeko-Institut’s Energy and Climate Division. Her thematic emphasis is the German power grid as well as investment decisions. Her key activities at the Institute include the modeling of the future power system and data processing.
Christoph Heinemann is a Senior Researcher at the Freiburg branch of the Oeko-Institut’s Energy and Climate Division. His key activities include the topics of integration of renewable energy, flexibility options, regulation and modeling of the future power system.
Dominik Seebach is senior researcher with the Oeko-Institut’s Energy and Climate Division in Freiburg, Germany. He has proficient expertise in the field of RES-E markets and the role of consumers in the context of environmental additionality in green energy markets.
Moritz Vogel is a researcher at the Freiburg branch of the Oeko-Institut’s Energy and Climate Division. His key activities are located in the areas electricity market design, decentralized energy systems, integration of renewable energies, as well as flexibility mechanisms.

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