Business Model Innovation in Energy Businesses: Driving Factors, Trends and Implications for the Future

Abstract

The existing energy system is heavily centralized, where production and distribution systems are largely controlled by big utility companies. The issue of global warming, the need to reduce emissions, sustainable use of conventional hydrocarbons, and improvements in renewable energy technologies -both in terms of cost and performance -has highlighted the need to transform the energy market. The trend is further exacerbated by the advancement in technology. The transformation is said to have implications for the stakeholders involved in the process, including customers, utility companies, and regulatory bodies. The objective of this study is to explore the effect this transformation would have on the local energy system and the changes needed to be made to ensure the transition provides desired outcomes. Based on the findings, the study proposes changes companies need to make in their business models to adapt to the changing needs of the market as well as of customers.

Cleantech: Prospects and Challenges

“…The traditional model of development relied on the technologies and means to support economic development and growth. The approach has brought us far, however, fundamental issues such as uncontrolled production and consumption patterns have made it impossible to continue in a similar manner (EPA, 2019;Shakeel & Rajala, 2021). The unsustainable use of natural resources, excessive emissions, reliance on external sources, and the issue of global warming have forced us to reconsider the choices we have made in the past and adhere to the principles of sustainability and cleanliness in our operations (EU, 2018;IPCC, 2018).…”

Energy-as-a-service: A new business model for the built environment?

“…While the global momentum towards net zero emissions in built environment is rapidly accelerating, literature suggest exploring new business models (BMs) to expedite this energy transition [4,5]. BM propose, create and deliver value [6,7], that seek to somewhat bridge the gap between business-as-usual and renewable energy transition enabled with decarbonisation, digitalisation, decentralisation (3D) trends [8]. Guided by these trends, buildings are evolving from passive energy consuming structures to more active units with bidirectional flows of energy, money and information [1,9].…”