Drivers and barriers for the development of cooperative business models in the biogas sector for the transformation of the energy system
- The energy transition involves various challenges. One key aspect is the decentralization of power generation, which requires new actors. In order to integrate these into the system in the best possible way, there are various approaches e.g. in cooperation in citizens' initiatives or cooperatives (Dorniok, 2016). Cooperation in general can enable the implementation of certain business models or can increase profitability by the exploitation of economies of scale (Skovsgaard & Jacobsen, 2017; Theurl, 2010). Synergy effects result from the utilization of know-how, different technologies or resources of the partners involved to complement the own competencies and services (Eggers & Engelbrecht, 2005; Sander, 2009). Cooperation exists in various industries and enable the participating companies to compensate their size-related resource deficits (Glaister & Buckley, 1996; Todeva & Knoke, 2005). This creates the opportunity to develop innovations, open up new markets, exploit newly created economies of scale and share costs and risks (Franco & Haase, 2015). In agriculture, cooperation in the form of cooperatives have been of essential importance for a long time, especially with the aim of exploiting synergy effects (Bareille et al., 2017). In the field of renewable energy development, cooperation in form of citizen cooperatives make a significant contribution to the participation of citizens in political, social and financial aspects of the energy transition (Huybrechts & Mertens, 2014). Energy cooperatives are frequently discussed as a potential actor in the energy transition and are increasingly being established to advance the common interests of stakeholders. For example, the joint operation of decentralized power generation plants can involve new actors in the energy transition through regional cooperation (Walk, 2014). Existing biogas plants in Germany need new business models after the 20-year Renewable Energy Sources Act feed-in tariff expires. For continued operation, a business model innovation is needed, which can be realized based on the different technical utilization pathways. Cooperation can have a significant impact on the profitability of the different business models, especially by exploiting synergy effects (Karlsson et al., 2019). In addition, cooperation can help to ensure that existing plants continue to operate at all. Currently, the most widespread use of biogas in Germany is in the coupled generation of electricity and heat. Additionally, there is the possibility of upgrading biogas to biomethane or biogenic hydrogen path (Mertins & Wawer, 2022). Different options for cooperative business models that exist in the biogas utilization pathways are presented. The focus is on explaining the advantages of a joint approach compared to single-farm business models and identifying the relevant actors. Subsequently, drivers and barriers for the different cooperative business models are identified and classified based on 20 semi-structured interviews with plant operators in the administrative district of Osnabrück. The aim is to identify drivers and barriers for cooperative post-EEG operation. As a result, political instruments are to be found that make it possible to involve relevant actors and thus stimulate the best possible continued operation from the point of view of the energy system. The results are structured according to the PESTEL analysis. This assigns drivers and barriers to the categories political, economic, sociocultural, technological, ecological and legal (Kaufmann, 2021). The analysis of the interviews is supplemented and validated by a literature review. Drivers and barriers for cooperative business models are manifold and can vary mainly depending on the plant and the operator. Drivers • Political o Promotion of renewable energies: reduce dependence on fossil (Russian) fuels • Economic o Expectation of synergies (information sharing, shared risk, economies of scale) o Planning security (fixed supply or purchase contracts) o Access to new markets (not accessible by single-farm business models) o Cost savings by sharing infrastructure, technology o Positive return expectation • Sociocultural o Motivating, innovative environment o Lowers barriers to participation in new markets o Target-oriented partnerships o Better use of capacities and strengths o Strengthening regional value creation • Technological o Economies of scale (efficiency) o Available, mature technology o Storable, transportable gas o Well-developed infrastructure • Ecological o Increase in plant efficiency o Reduction of greenhouse gas emissions o Promotion of the circular economy by utilization of organic waste and agricultural residues o Improving soil quality (fermentation residues as fertilizer) Barriers • Political o Competition to other renewable energies • Economic o Uncertainty about future development of energy markets o Disagreements between the cooperation partners o Lack of flexibility due to longer-term contractual obligations o Allocation of profits • Sociocultural o Cooperation with current competitor o Cultural differences and lack of trust o Acceptance by the general public (e.g. overproduction of maize) • Technological o Different technology that is difficult to combine o Data protection • Ecological o Competition for agricultural land o Use of monocultures o Emissions from plant o Pollution from transport • Legal o Legal requirements and regulations o Unfavorable regulatory environment, e.g. long permitting process One finding is that uncertainty is a major barrier for plant operators. This includes uncertainty about regulatory frameworks and political requirements, as well as about the general development of the energy markets. In addition, social factors such as lack of reliability and disagreement about revenue sharing are a potential barrier. A key driver for the implementation of cooperative business models is the expectation of synergy effects. In addition, operators are driven by a positive expectation of returns and the responsibility for securing the energy supply in times of crisis. The drivers identified can now be used to develop strategies to advance cooperative business models. In particular, synergy effects should be exploited so that operators can benefit from cooperation. The advantages can also be highlighted and communicated to increase acceptance among the general public. Another important step is to reduce the barriers discussed above. In order to reduce social barriers in particular, it may be advisable to include an external partner in the cooperation, such as a municipal utility that operates an upgrading plant and concludes purchase agreements with the individual partners. In addition, it would be politically expedient to provide the operators with a clear framework for the future in order to reduce uncertainties. As a further aspect, knowledge transfer on new technologies and markets should take place.
Author: | Anica Mertins, Mathias Heiker, Sandra Rosenberger, Tim WawerORCiD |
---|---|
Title (English): | Drivers and barriers for the development of cooperative business models in the biogas sector for the transformation of the energy system |
URN: | urn:nbn:de:bsz:959-opus-42515 |
Document Type: | Conference Proceeding |
Language: | English |
Year of Completion: | 2023 |
Release Date: | 2023/06/26 |
Tag: | biogas; cooperative busines models; drivers and barriers |
Page Number: | 12 |
Note: | ICNP2023 – 20.-21.06.2023, Groningen, Niederlande |
Faculties: | Fakultät IuI |
Fakultät MKT / Institut für Management und Technik | |
DDC classes: | 300 Sozialwissenschaften / 333.7 Natürliche Ressourcen, Energie und Umwelt |
Review Status: | Eingereichte Fassung |