Non-traditional business models for city-scale energy storage: evidence from UK case studies

Abstract

This paper investigates emerging non-traditional business models for decentralised energy systems with a focus on the role of city-scale storage technologies. We discuss the key characteristics of the different business models which have been identified in the literature and we discuss case studies across the United Kingdom in order to illustrate the key factors which influence their adoption and implementation. On the basis of evidence from recent UK case studies we investigate the market and regulatory barriers, contractual and transactional issues which may prevent key actors from exploiting the full market potential of their assets. We find that emerging business models rely on a range of different revenue sources with some limitations due to complex contractual relations, regulatory barriers and limited access to markets for ancillary services. The evidence we provide can be used by companies and organisations intending to operate in this fast developing market and inform policymakers aiming to promote the expansion and improvement of emerging business models.

What Makes Decentralised Energy Storage Schemes Successful? An Assessment Incorporating Stakeholder Perspectives

“…Successful business models need clarity on both the market arrangements in place and an appropriate regulatory framework for investment decisions to be made [24]. Moreover, ownership structures and contractual arrangements need to be clear so that it is easier to identify the optimal allocation of resources.…”

“…The prompt materials for the workshop were generated by the paper authors and other researchers in a wider research project (see http://sure-infrastructure.leeds.ac.uk/c-madens/ for further information) Most of the work that informed the prompt materials has been published separately [17,20,21,24,28] and the prompt material themselves are presented in full in the Supplementary Material File.…”

“…First, we organised an open discussion about feasible business models for domestic energy storage from the perspective of the participants, i.e., What has/has not worked in their experience with storage, solar and/or similar initiatives? In the second stage, we provided each group with a partially completed business model canvas based on the energy storage case study [24]. Our business model canvas focused on several important components in order to streamline the complexity of the task presented and retrieve the key information required from the stakeholders.…”

“…Supplementary Materials: The information included in the supplementary material provides the reader with the full details of the methods and presentation materials. The supplementary material includes the work in the fields of technology, business and social science that informed the prompt materials for this workshop and that has been previously published in scientific journals [as per this paper references of the research are 17,20,21,24,28]. Also, it includes the prompt materials themselves and their respective justification for each of the three session (e.g., charts and graphs on the technoeconomis considerations, the business model canvas used, and the templates with quotes used to illicit discussion among the stakeholders from the public perception session).…”

Technologies of Engagement: How Battery Storage Technologies Shape Householder Participation in Energy Transitions

“…Information technologies thus appear as a key factor in enabling connections between local or geographically distributed households and connections with wider infrastructures such as electricity markets. In shaping which transactions can take place, how, and between which entities, digital platforms [27] are becoming a new underlying structure for organizing energy production and consumption at decentral level, with as yet unknown implications for power relations in the energy system [28].…”