The limited potential of regional electricity marketing – Results from two discrete choice experiments in Germany

The German energy transition has led to a strong expansion of renewable energies in recent years. As result, the population is increasingly coming into contact with generation facilities. To increase local acceptance for new installations and create sales channels suppliers, legislature established “System Guarantees Regional Origin” 2019, which allows marketing electricity from subsidized facilities as “electricity generated region”. However, regional comes additional costs on procurement side it unclear whether what extent consumers are willing pay premium regionally. This study investigates willingness (WTP) residential customers based two samples 838 59 respondents, respectively. Our model results show that, average, WTP positive, especially among female, younger better-educated customers, although differences between these sociodemographic characteristics small. Factors that more relevant current type tariff, differentiated non-green green, latter having positive influence, but also tariff switching behavior past, proxy price sensitivity. Although severely limited, only pertains subgroup customers. Hence, not surprising our simulation shows including green an supplier's portfolio likely lead product cannibalization, meaning mainly will choose this tariff. From perspective, raise question offering economically viable. Future research could further investigate underlying factors drive preferences regionally how can contribute acceptance.