scholarly journals Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers

Energies ◽  
2021 ◽  
Vol 14 (21) ◽  
pp. 7085
Author(s):  
Guntram Pressmair ◽  
Christof Amann ◽  
Klemens Leutgöb
Keyword(s):  
Demand Response ◽  
Business Models ◽  
Energy Transition ◽  
Scientific Discussion ◽  
Electricity System ◽  
Technological Advances ◽  
Business Cases ◽  
Quantitative Validation ◽  
Quantitative Results ◽  
The Internet Of Things

The European energy transition increasingly requires flexibility to ensure reliable operation of the electricity system, making use of demand response, a promising concept. With technological advances in the fields of big data analysis and the internet of things, small- and medium-sized prosumers could also provide flexibility services through aggregators. A lot of conceptual work has been conducted recently to formulate business models in this context, but their viability still remains unclear. In this paper, a quantitative validation is conducted of two business models that are frequently proposed in the scientific discussion. The aim of this work is to explore the economic limits of these business models and show under which conditions they can be profitable for small- and medium-sized prosumers. For this purpose, a multi-level contribution margin calculation for several scenarios, customer segments and target markets is conducted. The results show that the profitability for the participation of small loads is still very low under current market conditions. Especially for household consumers, transaction costs are too high to be covered by the revenues. Considering the quantitative results, in the future profitable business cases can only be expected for medium-sized tertiary consumers.

Doing More With Less

2019 ◽  
pp. 1-17
Author(s):  
Carlos Hernán Fajardo-Toro ◽  
Andrés Aguilera-Castillo ◽  
Mauricio Guerrero-Cabarcas
Keyword(s):  
Artificial Intelligence ◽  
Business Models ◽  
Industrial Revolution ◽  
Industrial Robots ◽  
The Internet ◽  
Fourth Industrial Revolution ◽  
Technological Advances ◽  
Personal Robotics ◽  
Novel Applications ◽  
The Internet Of Things

Technological advances and novel applications in areas such as industrial robots (eventually personal robotics), artificial intelligence, big data, 3D printing, the internet of things, biotechnology, blockchain, and others have revived the debate on how the development and implementation of technological innovations may displace labor. These technologies are allowing the innovation of products, services, and business models at unprecedented speed, in the same way they are putting at risk both qualified and unqualified jobs and occupations. Most of the specialized literature dealing with the issue of technology and labor comes from the economics discipline, but it is pertinent to discuss how this translates into the managerial, organizational, and strategic principles framed for the fourth industrial revolution.

A Social Engagement Fast Track on Energy Communities—Key Lesson Learned from H2020 EU Projects

2021 ◽  
Vol 11 (1) ◽  
pp. 17
Author(s):  
Simona d’Oca ◽  
Sylvia Breukers ◽  
Stephan Slingerland ◽  
Marten Boekelo ◽  
Mara J. van Welie ◽  
...  
Keyword(s):  
Citizen Participation ◽  
Demand Response ◽  
Social Engagement ◽  
Energy Transition ◽  
Clean Energy ◽  
Lessons Learned ◽  
Energy Market ◽  
Electricity System ◽  
And Storage

Energy communities organise collective and citizen-driven energy actions that will help pave the way for a clean energy transition, while moving citizens to the forefront. The energy market is rapidly transforming and so is the role of the consumer. Yesterday’s passive consumers become central actors in today’s energy markets. Today, as prosumers, citizens can benefit from their generation, consumption, and storage capabilities. Moreover, by supporting social engagement and citizen participation, energy communities can help provide flexibility to the electricity system through demand response, storage, and peer-to-peer energy exchange. Based on the collective debate from nine H2020 running projects (Renaissance, COMETS, Sender, eCREW, Lightness, ReDream, HESTIA, UP-STAIRS and NRG2peers), several challenges and key lessons learned can be identified for just social engagement. These challenges and lessons are relevant for the present and future development of EU energy communities.

scholarly journals SWAN platform: A web-based tool to support the development of industrial solid waste reuse business models

2021 ◽  
pp. 0734242X2198941
Author(s):  
Athanasios Angelis-Dimakis ◽  
George Arampatzis ◽  
Tryfonas Pieri ◽  
Konstantina Solomou ◽  
Panagiotis Dedousis ◽  
...  
Keyword(s):  
Solid Waste ◽  
Industrial Waste ◽  
Business Models ◽  
Web Based ◽  
Matching Algorithm ◽  
Waste Reuse ◽  
Industrial Solid Waste ◽  
Business Cases ◽  
Industrial Unit

The SWAN platform is an integrated suite of online resources and tools for assessing industrial symbiotic opportunities based on solid industrial waste reuse. It has been developed as a digital solid waste reuse platform and is already applied in four countries (Greece, Bulgaria, Albania and Cyprus). The SWAN platform integrates a database with the spatial and technical characteristics of industrial solid waste producers and potential consumers, populated with data from these countries. It also incorporates an inventory of commercially implemented best practices on solid industrial waste reuse. The role of the SWAN platform is to facilitate the development of novel business cases. Towards this end, decision support services, based on a suitable matching algorithm, are provided to the registered users, helping them to identify and assess potential novel business models, based on solid waste reuse, either for an individual industrial unit (source/potential receiver of solid waste) or a specific region.

scholarly journals Regional Electricity Models for Community Energy in Germany: The Role of Governance Structures

2021 ◽  
Vol 13 (4) ◽  
pp. 2241
Author(s):  
Moritz Ehrtmann ◽  
Lars Holstenkamp ◽  
Timon Becker
Keyword(s):  
Renewable Energy ◽  
Business Models ◽  
Energy Transition ◽  
Governance Structures ◽  
Business Networks ◽  
Sustainable Innovation ◽  
Value Propositions ◽  
Energy Companies ◽  
Desk Research

Community energy actors play an important role in the energy transition, fostering the diffusion of sustainable innovation in the renewable energy market. Because market conditions for business models in the renewable energy sector are changing and feed-in-tariff (FiT) schemes expiring, community energy companies are in the process of innovating their business models. In recent years, several community energy companies in Germany have entered the electricity retail market selling locally generated electricity from their renewable energy installations to customers in their region. We explore the evolving regional electricity business models for community energy companies in Germany, related governance structures, and the role they play for a sustainable energy transition. In order to implement these complex business models, community energy companies cooperate with professional marketing partners (intermediaries), which are capable of taking over the tasks and obligations of electricity suppliers. Through a series of expert interviews and desk research, we identify three distinctive regional electricity business models and examine opportunities and challenges to their implementation. Results show that there are different forms of cooperation, leading to specific governance structures and creating a set of new value propositions. Through these forms of cooperation, business networks emerge, which can function as incubators for sustainable innovation and learning for the post-FiT era.

scholarly journals Natural Assurance Schemes Canvas: A Framework to Develop Business Models for Nature-Based Solutions Aimed at Disaster Risk Reduction

2021 ◽  
Vol 13 (3) ◽  
pp. 1291
Author(s):  
Beatriz Mayor ◽  
Pedro Zorrilla-Miras ◽  
Philippe Le Coent ◽  
Thomas Biffin ◽  
Kieran Dartée ◽  
...  
Keyword(s):  
Ecosystem Services ◽  
Risk Reduction ◽  
Case Studies ◽  
Disaster Risk Reduction ◽  
Business Models ◽  
Climate Adaptation ◽  
Disaster Risk ◽  
Critical Information ◽  
Business Cases ◽  
Floods And Droughts

Nature-based solutions (NBS) are increasingly being promoted because they can solve different pursued aims together with providing an additional array of multiple ecosystem services or co-benefits. Nevertheless, their implementation is still being curbed by several barriers, for example, a lack of examples, a lack of finance, and a lack of business cases. Therefore, there is an urgent need to facilitate the construction of business models and business cases that identify the elements required to capture value. These are necessary to catalyze investments for the implementation of NBS. This article presents a tool called a Natural Assurance Schemes (NAS) canvas and explains how it can be applied to identify business models for NBS strategies providing climate adaptation services, showing an eye-shot summary of critical information to attract funding. The framework is applied in three case studies covering different contexts, scales, and climate-related risks (floods and droughts). Finally, a reflective analysis is done, comparing the tool with other similar approaches while highlighting the differential characteristics that define the usefulness, replicability, and flexibility of the tool for the target users, namely policymakers, developers, scientists, or entrepreneurs aiming to promote and implement NAS and NBS projects.

The future of the Internet of Things: toward heterarchical ecosystems and service business models

2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Value Chain ◽  
Large Scale ◽  
Business Models ◽  
The Internet ◽  
Content Type ◽  
Industry Collaboration ◽  
New Business ◽  
The Internet Of Things

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.

Flexible IT platform for synchronizing energy demands with volatile markets

2018 ◽  
Vol 60 (3) ◽  
pp. 155-164 ◽  
Author(s):  
Paul Schott ◽  
Raphael Ahrens ◽  
Dennis Bauer ◽  
Fabian Hering ◽  
Robert Keller ◽  
...  
Keyword(s):  
Demand Response ◽  
Business Case ◽  
Electricity Production ◽  
Demand And Supply ◽  
Know How ◽  
Electricity System ◽  
Energy Demands ◽  
Production Processes ◽  
Long Run ◽  
Additional Level

Abstract Abandoning fossil and nuclear energy sources in the long run and increasing amount of renewable energies in electricity production causes a more volatile power supply. Depending on external realities, renewable energy production emphasizes the need for measures to guarantee the necessary balance of demand and supply in the electricity system at all times. Energy intensive industry processes theoretically include high Demand Response potentials suitable to tackle this increasing supply volatility. Nevertheless, most companies do not operate their production in a flexible manner due to multiple reasons: among others, the companies lack know-how, technologies and a clear business case to introduce an additional level of flexibility into their production processes, they are concerned about possible impacts on their processes by varying the electricity demand and need assistance in exploiting their flexibility. Aside from fostering knowledge in industry companies, an IT-solution that supports companies to use their processes’ Demand Response potential has become necessary. Its concept must support companies in managing companies’ energy-flexible production processes and monetarize those potentials at flexibility markets. This paper presents a concept, which integrates both companies and energy markets. It enables automated trading of companies’ Demand Response potential on different flexibility markets.

scholarly journals Evaluation of business models of urban IoT-applications for a medium sized city

2020 ◽  
Vol 338 ◽  
pp. 393-403
Author(s):  
Ferdinand Fischer ◽  
Birgit Schenk
Keyword(s):  
Best Practices ◽  
Business Models ◽  
Smart Cities ◽  
Research Question ◽  
The Public ◽  
Iot Applications ◽  
Evaluation Scheme ◽  
Number Of Factors ◽  
German City ◽  
The Internet Of Things

Digitalization of the public sector is being driven by a number of factors. In particular, the concept of "Smart Cities" has become an important driver of this development. This relies heavily on an intelligent infrastructure including the Internet of Things (IoT). But does it make sense for small and medium-sized municipalities to develop this? Is it justified to invest in IoT? (How) can a mediumsized city benefit from it? This paper presents the application of an evaluation scheme for business models of urban IoT applications to answer these questions. The research question focuses on how best practices of urban IoT applications in general and in particular can be evaluated. In order to establish a concrete practical reference we evaluated ten chosen IoT applications for the German city of Herrenberg.

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