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ID:
150892
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| Summary/Abstract |
The traditional energy utility business model is under pressure, and energy services are expected to play an important role for the energy transition. Experts and scholars argue that utilities need to innovate their business models, and transform from commodity suppliers to service providers. The transition from a product-oriented, capital-intensive business model based on tangible assets, towards a service-oriented, expense-intensive business model based on intangible assets may present great managerial and organizational challenges. Little research exists about such transitions for capital-intensive commodity providers, and particularly energy utilities, where the challenges to servitize are expected to be greatest. This qualitative paper explores the barriers to servitization within selected Swiss and German utility companies through a series of interviews with utility managers. One of them is ‘asset transformation’, the shift from tangible to intangible assets as major input factor for the value proposition, which is proposed as a driver for the complexity of business model transitions. Managers need to carefully manage those challenges, and find ways to operate both new service and established utility business models aside. Policy makers can support the transition of utilities through more favorable regulatory frameworks for energy services, and by supporting the exchange of knowledge in the industry.
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| 2 |
ID:
125833
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| Publication |
2013.
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| Summary/Abstract |
The electric power sector stands at the beginning of a fundamental transformation process towards a more sustainable production based on renewable energies. Consequently, electric utilities as incumbent actors face a massive challenge to find new ways of creating, delivering, and capturing value from renewable energy technologies. This study investigates utilities' business models for renewable energies by analyzing two generic business models based on a series of in-depth interviews with German utility managers. It is found that utilities have developed viable business models for large-scale utility-side renewable energy generation. At the same time, utilities lack adequate business models to commercialize small-scale customer-side renewable energy technologies. By combining the business model concept with innovation and organization theory practical recommendations for utility mangers and policy makers are derived.
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| 3 |
ID:
179712
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| Summary/Abstract |
A growing body of literature focusses on the untapped potential of distributed energy as a means of implementing an energy system switch in favour of a substantial demand coverage by renewables. In Europe a policy turnaround has been initiated to promote such a transition. At the same time municipalities across Europe with ambitious climate targets seek to capture the community benefits of civic energy. Together, such developments challenge the restrictions imposed by the incumbent energy utility business model. This paper investigates how energy business models can be re-designed to allow for communities to benefit and at the same time ensure that civic energy processes can be run in a predictable, quality-assured manner. To this end civic energy is cast as a process and a generic business model framework is derived from a comprehensive civic energy process model, the Civic Energy Cycle. The ensuing Civic Energy Business Model Framework replaces the single currency of the energy utility business model by catering to diverse civic energy value propositions. The process approach is used to identify the drivers of civic energy processes and explicitly foresees an active role of community stakeholders in shaping such processes.
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