Business Model Innovation Approach for Commercializing Smart Grid Systems

Abstract

The depletion of fossil fuels, increased environmental concerns, rising cost and the demand for clean energy are causing the transformation of energy generation and distribution system, to shift towards the consumption side. Electricity generation sources and distribution systems are drifting from non-renewable to renewable, centralized to decentralized and localized, and traditional grid systems to smart grid systems. New technologies nurture the concept of transformation of energy firms, all the way from energy production to electricity consumption. Smart grid systems are one of the disruptive and emerging technologies that might influence the entire electricity system. This disruptive technology demands a new business model which can be used to commercialize the new power distribution system and thus create value for all stakeholders, from production to consumption. The Smart grid has the potential to revolutionize the electricity industry if it is commercialized successfully. It allows information and communication technology firms to contribute with their modern technology to empower their consumers to regulate the usage of electricity. To investigate the reasons for shifting from the old to the new energy system, the impact of this disruptive technology on energy providing firms, the demand for the new business model and the approach of the new business model in terms of creating and capturing values published peer-reviewed articles, and international energy agency reports have been reviewed. This paper encourages energy providing firms to redesign business models for commercializing new energy distribution system and to offer new services to the energy consumers for their future survival in the new trends of the energy market. These services include integrating with renewable energy sources, electric vehicle services, and demand response services to create more value for the consumers and in return gains more profit for each actor. The services provided through integration of renewable energy with smart grid and the electric vehicle will empower consumers involvement in the How to cite this paper: Bhatti, H.J. and Danilovic, M.

From Energy as a Commodity to Energy as a Service—A Morphological Analysis of Smart Energy Services

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A Multidimensional Readiness Index for the Electrification of the Transportation System in China, Norway, and Sweden

“…The primary understanding is to know which countries are the buyers and which are the manufacturers, i.e., value creators and wealth distributors, and which countries have the capacity to develop the entire value chain in each country that brings value to the government and industry, and wealth to the people. The electrification of transportation is a complex system associated with energy sourcing and distribution subsystems all the way to electricity consumption [3,4]. The entire transportation electrification system is interrelated and interdependent on technology, industrial politics, economic conditions, political and societal domains, and the global competition for controlling market shares.…”

Founders’ Creativity, Business Model Innovation, and Business Growth

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