Direct marketing for Renewable Energies

Other direct marketing options involve a variety of models. Below, we describe in more detail the model based on decentralised electricity supply to tenants [„Mieterstrommodell”] and the local direct sale model. Other direct marketing options are, however, not limited to these 2 models and, for the purposes of the Rödl & Partner market overview, any other marketing models that could be possible in the relevant countries have been collected in this section.

Model based on decentralised electricity supply to tenants (based on the model in Germany):

The model based on decentralised electricity supply to tenants is a structure where the electricity produced by the owner of a power plant, mostly of a rooftop PV installation (e.g. a landlord renting out apartments) is sold to end consumers, or tenants. In addition, a conventional power supply agreement with a utility company (UC) should be concluded in order to ensure a  continuous supply of electricity. Not only does the owner derive financial benefits from the sale of the produced electricity but also tenants can buy low-emission electricity at an often more favourable and stable tariff (compared to the purchase from the public grid). This model nearly exclusively refers to PV power plants that can be installed on the rooftops of residential buildings. The idea behind this model is also to have tenants (who do not own any residential property) participate in the benefits of renewable energy. Given how densely populated the residential areas of urban agglomerations are, it is believed that this model has great potential. The contractual structures should be implemented on the basis of a transparent and clear regulatory framework so as to ensure legal certainty and to keep the bureaucratic effort of the power plant owner at a reasonably low level.

Moreover it would be of advantage if  tenants could withdraw from the power supply agreement with the power plant owner anytime they want. This means that the power plant operator should conclude a separate agreement with every tenant. The model based on decentralised electricity supply to tenants can also offer exemptions from tax burdens. In a simplified scenario – if permitted by law – the PV power plant could be included in parts into the lease agreement (for the particular apartment) and be operated as part of the energy efficiency system (for own consumption) in the building. The consideration of the marketing of the electricity fed into the public grid is obligatory in any case.

Local Direct marketing:

Local direct marketing is the selling of excess amounts of the electricity generated in a power plant owned by the end consumer to other end consumers. This requires that consumers of self-generated electricity should be regarded not only as single entities but also as a collective entity. Under this model, the residual electricity required by neighbours and the owner of the power plant is supplied by a utility company. Important is that, by selling excess electricity, the power plant owner does not turn into a UC from the legal point of view, which would increase bureaucracy on the part of the owner. For those marketing and remuneration models, blockchain technology is deemed to be the most effective as this technology is the ideal basis for peer-to-peer systems.

Local direct marketing offers owners of power plants further opportunities for selling their excess electricity. Especially in residential and industrialised areas, this model can help support decentralised production of electricity.