Accelerating the Green Energy Transition for Sustainable Buildings and Cities: Estimating the Benefits of Community Power Purchase Agreements

Abstract

Energy plays a crucial role in smart and sustainable cities as buildings and construction account for 36 % of energy consumption. The electrification of heating and transportation could significantly increase buildings' electricity consumption. Previous literature has focused on on-site energy, especially in the energy community context, to encourage the cities to participate in the energy transition. However, on-site electricity can only produce one-fifth of the total demand. When pooled together, households could contribute to off-site electricity production to bring negotiation power and subsequent economic and environmental benefits. This paper examines households' opportunities to contribute to off-site electricity production and electricity prices by utilizing the energy community concept. It quantifies the economic benefits for the households participating in a community power purchase agreement in the context of Helsinki, Finland. It presents a blockchain-based platform to facilitate the establishment of community power purchase agreements.