Designing a sustainability framework for the initiation and management of coordination in an energy exchange

- Unveil the mechanism behind coordination failure in bilateral eco-energy projects.
- Offer a quantitative framework for eco-friendly firms and policymakers to induce coordination.
- Quantify relevant critical values that initiate coordination.
- Offer methodical approaches to facilitate and manage coordination through controlling critical values.
- Visualize the interactions between a project's economic attributes and the realization of coordination.

Although innumerable bilateral energy exchange projects show promising project values that would outweigh their costs, surprisingly, only a fraction of these projects could be realized. The aim of this paper is to unveil the potential reason behind the failure of coordination in bilateral energy exchange projects, to design a sustainability framework for initiating coordination for these types of unsuccessful bilateral energy exchange and to increase their feasibility. Furthermore, our paper offers 1) possible solutions for increasing the likelihood of coordination by transferring an appropriate amount of profit between the firms and 2) guidelines for an efficient government subsidy policy for a bilateral energy exchange.

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