• In the Biozon pilot the end-user pays no more than the cost price + for their energy. This Local4Local framework is developed and implemented bottom-up. Community model for a sustainable, collective energy supply, where end-users pay no more than the cost price + for their energy, all while minimizing the impact on the local energy infrastructure. The cost price + is calculated by considering the total cost of generating, purchasing, distributing, storing, sharing, and delivering renewable energy, balanced against revenues from flexibility markets and surplus sales of renewable electricity or heat.
• The participants in the Biozon energy community are member of the energy cooperative BioZon. BioZon is 100% owner of the landfill gas generator, thereby implementing a cooperative model.
• Over the first 10 months of 2023, end-consumers participating in BioZon had a discount of 37% on average on their energy price, compared to a regular market contract.
• Participants also receive an interest of 7% on their investment in BioZon.

• What problem(s) does the case study aim to resolve?
  • Promote or include RES generation
• What were the social objectives (if any)?
  • Participants have greater control over preferences; self-sufficiency (autarky); autonomy
  • Improvement to local economy (job creation etc); independence from other regions; community as focal point for engagement; shared benefits across the community
  • Economic incentives for participants; access wholesale, balancing and ancillary service markets
• What were the environmental objectives (if any)?
  • None
• To what degree were participants actively involved in design or operation?
  • Users are represented by a board, board members were very engaged in the design process. This was a co-creation process.
• Was participation financially or socially incentivised or both?
  • Return on investment and reduced consumer price (cost-price), lower then the market price
• What degree of demand response flexibility was provided?
  • None

Bennie Wisselink – chairman BioZon:
“Market prices are high, but we have our own generator, and produce our own electricity at a cost price much lower than the market price. If we supply the energy to ourselves, we can determine the price we pay.”

Market value proposition and key activities:

• Implement a pricing model where end-users pay no more than the cost price plus, ensuring a sustainable and equitable energy supply.
• Consider various factors such as generation, distribution, storage, and flexibility market revenues when determining the cost price for energy
• Operate the market on a forward-facing (day-ahead) basis, allowing participants to submit bids per 15 minutes.
• Foster a bottom-up community model with transparent and equitable energy pricing to encourage community engagement.
• Encourage financial participation from community members to fund necessary investments, leveraging national and provincial subsidy schemes to create an attractive business case.
• Establish an energy cooperative where participants have ownership and governance rights, with clear rules for internal governance, dispute resolution, and geographical constraints on participation.
• Ensure diverse representation among participants, including households with varying socioeconomic statuses, and engage participants in the co-creation of project objectives to foster community ownership and engagement.