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Community microgrids: A decision framework integrating social capital with business models for improved resiliency

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  • Eklund, Melissa
  • Khalilpour, Kaveh
  • Voinov, Alexey
  • Hossain, M.J.

Abstract

This paper introduces a novel Multi-Criteria Decision Analysis (MCDA) framework for systematic evaluation and alignment of business models for community microgrids within local energy markets (LEMs). Our approach uniquely integrates social capital as a critical metric for assessing the success of these models. The framework's robustness is demonstrated through a case study application, showcasing its utility as a decision-support tool. This tool effectively bridges the gap between the operational and technical aspects of microgrids with the socio-economic context of the communities they serve. A key contribution is the establishment of a systematic categorisation of business models and LEMs facilitated by the MCDA framework. This approach emphasises the importance of analysing the synergy between business model components (ownership, revenue/pricing, activities, value proposition) and the corresponding market mechanisms, infrastructure, and ICT frameworks. The results demonstrate how the framework guides an informed and context-sensitive selection of business models, leveraging the interconnected socio-technical dynamics inherent to community energy systems.

Suggested Citation

  • Eklund, Melissa & Khalilpour, Kaveh & Voinov, Alexey & Hossain, M.J., 2024. "Community microgrids: A decision framework integrating social capital with business models for improved resiliency," Applied Energy, Elsevier, vol. 367(C).
    • Handle: RePEc:eee:appene:v:367:y:2024:i:c:s0306261924008419
    DOI: 10.1016/j.apenergy.2024.123458
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    References listed on IDEAS

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    1. MAREK HUDON & BENJAMIN HUYBRECHTS & Thomas BAUWENS & Jacques DEFOURNY, 2017. "Social Capital And Mutual Versus Public Benefit: The Case Of Renewable Energy Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 88(2), pages 203-232, June.
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