The impact of the institutional context on the potential contribution of new business models to democratizing the energy system

This chapter investigates how the institutional context influences the business models for community energy projects, which often intend to enable community members to gain some level of influence, control and ownership over the energy system. We analyse the viability of these projects, by investigating the concrete opportunities for community-based Virtual Power Plant projects in two countries (the Netherlands and Ireland) and how these are shaped by incumbent institutional arrangements at EU, national and local levels. The analysis is structured using the constitutive elements of a business model can-vas as a heuristic. The results show that in order to survive in the energy services market (which is necessary for economic viability on the longer term) community energy initia-tives are forced to partially abandon their community logic-based business model. We discuss how current institutional arrangements are not conducive to a more inclusive en-ergy system and how this could be improved.