Abstract
Empowered by information and communication technologies (ICT) analytics and smart technologies, the energy model landscape is changing with flexibility at the core of a new energy market design. In particular, multi-sided platforms (MSPs) has gained prominent attention as a business model that creates value by enabling direct interactions between several distinct groups of actors who need each other in order to deliver products to their customers. However, as MSPs are less familiar within the energy market, there has been little investigation in modelling this emerging and dynamic ecosystem. Utilising the business modelling methodology of value network analysis and the key informant technique, value flows were modelled within the context of a MSP to understand the creation, delivery and capture of value in a network of interdependent relationship, its networked position and the stakeholder interactions required for delivery of local flexibility. Supported by this analysis, this paper focuses on the LV area of the smart grid, and presents the Local Flexibility Market (LFM) as a Multi-Sided Plarform. In comparison to the traditional utility model, the complexity of this recharacterization of the industry ecosystem is significant. While it presents new opportunities for incumbent energy providers to collaborate and develop new products, the proposed LFM market design will also dramatically reshape the value model of the industry.
Highlights
Developing infrastructures, technologies and supporting business models to unlock energy market flexibility is currently one of the core questions discussed in various key energy policy circles in Europe (European Commission 2015 a; b; EC Europa 2015)
This paper argues that empowered by information and communication technologies (ICT), analytics and smart technologies, the emergence of the Prosumer as an active participant in the energy value chain will herald the era of multi-sided platforms (MSPs) which fundamentally changes the energy model landscape with flexibility at the core of a new energy market design
The realization of the smart grid and emergence of a flexibility market will change it even more (Valocchi et al, 2010). This is depicted in the left portion of the dotted lines in Figure 1 which shows our conceptualization of a Local Flexibility Market model (LFM) where a Local Flexibility Aggregator (LFA) is between the consumer/prosumer and the upstream energy system actors (Lynch et al, 2016a)
Summary
Developing infrastructures, technologies and supporting business models to unlock energy market flexibility is currently one of the core questions discussed in various key energy policy circles in Europe (European Commission 2015 a; b; EC Europa 2015). Moving from a unidirectional electricity grid system that delivers energy from centralized power plants to customers through transmission and distribution lines represents a disruptive shift (Wainsteina & Bumpus, 2016) Such transformations in energy systems, necessitates the need for exploring the role of innovative business models and adapting, and in some cases creating new stakeholder roles, to realise the opportunities available associated with flexibility in local market contexts from the context of Prosumers (“pro” in prosumer comes from production) and aggregators (Steinheimer and Ulrich, 2012; Rathnayaka, et al, 2011).
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
