Energy Supplier 2.0: A conceptual business model for energy suppliers aggregating flexible distributed assets and policy issues raised

Abstract

The ongoing digitalization of the energy sector opens up opportunities for novel business models which can help to overcome some of the challenges accompanying the sustainable energy transition. One necessity in a more decentralized energy system with high shares of intermittent renewables is the provision of flexibility. This paper empirically applies the business model generation approach of Osterwalder and Pigneur (2010) in order to enhance our understanding of these transition challenges. The insights gained indicate that the focus of business models in the electricity supply market has to switch to a customer-driven perspective. To this end, the conceptual business model of an “Energy Supplier 2.0” as a dedicated aggregator of flexible capacities on the household level is investigated, showing how a specific new energy business model can tap the potential of distributed flexible energy assets. We find that the aggregation of the inherent economic potentials of these flexibilities is suitable to provide additional revenue streams, support grid operators, and promote customers to become “prosumers”. Despite these promising advantages, we find in the case of Germany that the current regulation and policies need to be adapted to achieve a broader diffusion of this type of business model and offer suggestions on the implementation.