Business Model Innovation for the Energy Market: Joint Value Creation for Electricity Retailers and Their Residential Customers
FCN Working Paper No. 15/2018
39 Pages Posted: 23 Mar 2020
Date Written: November 1, 2018
The objective of the present study is to explore and better understand how business model innovation and technology trends have in uenced electricity suppliers in the electricity retail market. We investigate how electricity suppliers can create and deliver values to private customers and capture the market for themselves through innovative technology and business models. To reach this goal, the collected data from eleven different European existing business models were analyzed and sorted in a systematic way with the "Business Model Canvas" approach (Osterwalder and Pigneur, 2010). To cluster the real world business models investigated, an identification of the applied patterns was carried out according to the "Business Model Navigator". We find that successful retailers are those companies which try to take a more consumer-centric perspective for creating extra value, while enabling and fostering more sustainable and energy-efficient lifestyles based on the smart orchestration of increasingly distributed energy resources.
Keywords: Electricity suppliers, business model innovation, value creation, private customers, electricity self-sufficient
JEL Classification: M10, M11, M13
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