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

See all articles by Mahdi Karami

Mahdi Karami

RWTH Aachen University - Institute for Future Energy Consumer Needs and Behavior (FCN)

Reinhard Madlener

RWTH Aachen University

Date Written: November 1, 2018

Abstract

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

Suggested Citation

Karami, Mahdi and Madlener, Reinhard, Business Model Innovation for the Energy Market: Joint Value Creation for Electricity Retailers and Their Residential Customers (November 1, 2018). FCN Working Paper No. 15/2018. Available at SSRN: https://ssrn.com/abstract=3544188 or http://dx.doi.org/10.2139/ssrn.3544188

Mahdi Karami (Contact Author)

RWTH Aachen University - Institute for Future Energy Consumer Needs and Behavior (FCN) ( email )

Mathieustrasse 6
Aachen, 52074
Germany

HOME PAGE: http://https://www.fcn.eonerc.rwth-aachen.de

Reinhard Madlener

RWTH Aachen University ( email )

School of Business and Economics / E.ON ERC
Mathieustra├če 10
Aachen, 52074
Germany
+49 241 80 49 820 (Phone)
+49 241 80 49 829 (Fax)

HOME PAGE: http://www.eonerc.rwth-aachen.de/fcn

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