Energy Business Models Research Articles

Circularity characterizes low-temperature district energy business models

This study has been undertaken to understand whether business models for heating, cooling and hot water can be categorized as circular. The study addresses the case of new, combustion-free technology by resorting to low-temperature district energy. Such systems necessitate smart infrastructure with efficient demand and supply matching ensuring the most cost-efficient use of heat supply over time. By studying 10 cases in a research project stretching across 3 years, it is identified that all cases display circular economy features, across the categories of reuse, reduce and recycle. The category of reverse logistics is only identified in 7 cases where energy is circulated within the networks. The integration of excess heat exhibits a particularly strong circularity case, covering all four circular economy dimensions. The circularity of low temperature district energy business models is, however, not free, but comes at a cost compared to conventional combustion-based technology, as new key resources and consequential investments are needed. The major conclusion of the study is that low temperature district energy business models are inherently circular, an important information for European policy making, fostering a circular energy transition.

From kilowatts to cents: Financial inclusion of citizens through Dutch community energy business model configurations

Community energy initiatives (CEIs) emphasize citizen empowerment, equitable distribution of energy transition costs and benefits, and the importance of local knowledge. While CEI goals align with energy justice principles, they have been criticized for not fully incorporating distributive justice, particularly the distribution of the benefits of a sustainable energy transition. Therefore, they may potentially perpetuate income inequalities. There are insufficient studies to conclusively determine whether CEIs perpetuate or address income inequalities. Moreover, the integration of transition studies, energy justice and business model literature is lacking, hindering effective analysis of CEI configurations that address income inequalities. This paper aims to connect the sustainability, energy justice and business model literature by dissecting the business model configurations of CEIs and assessing the inclusiveness of these components. To do so, we develop and employ an adapted business model canvas that incorporates societal and environmental considerations in the value proposition, value creation and delivery and value capture. The canvas is used to determine whether sustainability and energy justice considerations, particularly distributive justice principles, are embedded in the CEI business models. The research is focused on the Netherlands, a country with a high number of CEIs. However, the study may yield insights relevant to other countries and CEIs, informing the integration of principles for societal inclusion in their own contexts. We utilize a mixed-method approach, including interviews, desk research and surveys, to ensure robust analysis through data triangulation. The study finds that there are elements of CEI business model configurations that are aligned with energy justice principles. However, models specifically targeting and aligning with minimum income social groups are rare.

The Business Model for Access to Affordable RE on Economic, Social, and Environmental Value: A review

Renewable energy has the potential to power the global economy and effective business models will significantly aid this goal, being among the most critical factors in spurring expansion in the energy industry. This paper reviews articles that discuss business models in the renewable energy sector. Longterm economic, social, and ecological stability is concerned. Previous studies have neglected the environmental sustainability of renewable energy business models, focusing on their technical, social, and economic aspects, primarily for energy access. The business models for solar home and pico systems relied heavily on lowering costs through creative payment plans for customers to be commercially viable. The demand for mini-grids requires end users to launch businesses that can leverage electrification initiatives to be commercially viable. The success of a mini-grid depends on the average consumption and revenue per user. Affordability, unmet energy needs, low electricity demand, lack of financing, unfamiliar business models, and immature markets have impeded energy access in Indonesia. Our analysis revealed that future studies in this field must include environmental sustainability to provide a complete picture for decision-makers. Renewable energy needs in Indonesia can be achieved through the sustainability domain, policy makers can consult this evidence set.

A socio-economic examination of participation in socially innovative energy projects

This paper aims to examine the role of citizen investment in scaling up renewable generation through participating or investing in social innovation in energy. It presents an explorative study demonstrating results of large-scale surveys of the general public across twelve countries (11 European plus the USA), representing the views of over 10,000 individuals. These surveys focus on three types of innovative energy business models, namely: energy cooperatives, crowdfunding and peer-to-peer platforms. In particular, we study the socioeconomic, demographic and attitudinal attributes of self-reported early participants in similar energy organizations, and also separately among those who express an unwillingness to participate in the above business models. The findings suggest that factors such as age, education, gender, risk preferences, previous general investment experience and trust in the carbon saving claims of organizations are important in explaining both self-reported previous and future participation in energy initiatives.

Redefining business models for the energy transition: Social innovation and sustainable value creation in the European energy system

Business as usual in the energy sector has become more challenging in the EU as distributed energy technologies and supportive policy included in the EU Energy Package have meant that new types of stakeholders, including citizens, citizen collectives, and municipalities, can participate in the energy system in innovative ways. Their “new” relationships, behaviors, and actions in the context of the energy transition, vis à vis the existing system, are often referred to as social innovation in energy systems. Socially innovative activities may deliver products and services similar to those of incumbent energy business models e.g., sustainable energy generation, but also create social value that traditional energy business models may not. This paper views these socially innovative activities using elements of a sustainability-oriented business model – the business model for sustainability (BMfS) – analyzing them in terms of their goals, involved stakeholders, and value creation processes. Analysis is conducted in case studies that span Western and Eastern Europe, using a mix of primary data (semi-structured stakeholder interviews) and secondary data (online materials). In addition to showcasing how socially innovative activities may contribute to value creation processes in the context of an energy business model, the case studies also depict differences in the extent and types of social innovation that can occur in the European context, with some reflection on how infrastructure and historical dynamics may play a role in these differences. I conclude with some reflections on definitions of business models and the applicability of the BMfS for a decentralizing energy system.

Investigation of Community Energy Business Models from an Institutional Perspective: Intermediaries and Policy Instruments in Selected Cases of Developing and Developed Countries

Community energy development and the empowerment of customers as producers are the main contributors to decentralized market solutions in energy transition policy. Despite the growing literature on community energy projects from the perspectives of various business models, drivers, and barriers, few studies display the impact of institutional factors on the community energy business model configuration. Using insights from Ostrom’s institutional framework, this study develops a conceptual framework comprising policy instruments and the intermediaries that configure the various community energy business models, and it examines this framework in the developed world of northwestern European countries (Germany, Denmark, Belgium, and the UK) and in selected cases in developing countries (Rural Central America, South Africa, Iran, and Indonesia). The findings indicate that ambitious renewable energy consumption targets and national policies in northern EU countries have resulted in political and financial incentives, as well as greater financial security than other investment markets, which encourage citizens to contribute to the proliferation of community energy. On the other hand, in the studied developing countries, top-down energy policies and a centralized energy system are insufficient for participatory energy planning. Due to unsupportive policies, a lack of appropriate regulatory frameworks, and a lack of institutional support in these countries, the initiation of community energy projects requires the presence of intermediaries such as developers who work ‘in-between’ other actors, such as energy providers, users, or regulators.

Prospects and challenges of Islamic finance instruments for low-carbon energy transitions: a legal analysis from an energy justice perspective

Recently, there has been a discussion of ‘energy justice’ in academic and conceptual settings, with a focus on analysing the term from a policy perspective. Recent studies have investigated how energy justice principles can be incorporated into new energy business models and emphasised the need to implement them into policy decision-making processes. However, there has been no comprehensive study from a justice viewpoint on the mobilisation of capital, including state, commercial or public financing. Islamic finance is emerging as an alternative means of financing that could significantly advance sustainable growth in the international financial markets, including the energy industry. However, there are challenges to incorporating Islamic finance into the energy industry, and further empirical and theoretical analyses are necessary to determine its sustainability. This research aims to theoretically explore how Islamic financial instruments could play a role in the energy transition and unlock the challenges of Islamic finance in the energy industry from an energy justice perspective. It also offers valuable insights into the legal framework for a fair and eco-friendly energy transition, conceptualising the nexus between the principles of energy justice and the applications of Islamic finance structures in different stages of the energy system.

‘Renewable Energy + Energy Storage’ Business Model Innovation -- An Emerging Sustainable Business Model Innovation

Recent reforms in the power industry include the promotion of ‘dual carbon’ targets, the development of large-scale and high-penetration, renewable energy and grid-connected consumption, and deep integration of digital technology and power services. The ‘renewable energy+energy storage’ combined innovation is the important direction of business model innovation for energy power enterprises. The data-driven, intelligent empowerment, green and low-carbon are all interesting items. This paper analyzed smart green business model innovation for the motivation, essential connotation and basic structure of ‘renewable energy+ energy storage’. Combining application scenarios, analyzing typical cases and practical effects of sustainable business model innovation were analyzed. the mechanism of digital technology empowering smart green energy business model innovation is explored. Finally, the general rules of sustainable business model innovation of smart green energy are summarized. The study will help power enterprises to promote the green and low-carbon transformation of energy and help to provide actionable guidance for achieving the goal of ‘double carbon’.

A Review of Peer-to-Peer Energy Trading with Standard Terminology Proposal and a Techno-Economic Characterisation Matrix

Nowadays decarbonisation of the energy system is one of the main concerns for most governments. Renewable energy technologies, such as rooftop photovoltaic systems and home battery storage systems, are changing the energy system to be more decentralised. As a consequence, new ways of energy business models are emerging, e.g., peer-to-peer energy trading. This new concept provides an online marketplace where direct energy exchange can occur between its participants. The purpose of this study is to conduct a content analysis of the existing literature, ongoing research projects, and companies related to peer-to-peer energy trading. From this review, a summary of the most important aspects and journal papers is assessed, discussed, and classified. It was found that the different energy market types were named in various ways and a proposal for standard language for the several peer-to-peer market types and the different actors involved is suggested. Additionally, by grouping the most important attributes from peer-to-peer energy trading projects, an assessment of the entry barrier and scalability potential is performed by using a characterisation matrix.

Energy Business Initiatives for Grid-Connected Solar Photovoltaic Systems: An Overview

An overview of the adoption extent of the energy business models around the world was undertaken by considering both the developed and developing countries, with the emphasis on the customer-side renewable energy business models. The developed countries have widely adopted energy business initiatives to advance the distributed generation of electricity from renewable energy sources, while developing countries are struggling and/or have failed to record significant success. Additionally, developing countries are shifting from customer-owned energy business initiatives to the community-shared energy business initiatives to enhance prosumer-generated energy self-consumption. Furthermore, the existent billing schemes as well as the store-on grid scheme applicable to the energy business initiatives are discussed in this paper. The virtual net metering scheme category is the main billing scheme used for the community-shared energy business initiatives. In addition, this study depicts how the store-on grid scheme addresses the shortfalls of the existent billing schemes. Finally, the study gives policy recommendations that the decision makers in the developing countries could use as a foundation to foster the solar PV technology deployment through energy business models, especially by the adoption of the store-on grid scheme as the billing scheme.

Sustainable Energy Business Model and Strategies for Marketing of Clean Energy Products in Rural Areas of India

Our world’s problem can be resolved with the use of energy. Energy is the fundamental structure for economic development of any area, state, or a country. In today’s world, energy access is a relevant issue. Availability of energy is required to improve health, agricultural productivity, and educational outcomes. The increased need for energy has led to a reliance on large-scale fossil fuel extraction and use. As a result, environmental degradation, pollution, and ecological imbalance have occurred. In order to find a solution, clean energy is vital. As a result, focusing on the shift from conventional to clean energy sources is critical. "Clean energy" is obtained mostly from non-polluting, zero-emission sources, as well as energy conserved via efficiency improvements. Access to clean energy can aid in the development of rural tribal communities. This paper focuses on a case analysis where sustainable energy business model was devised. The paper is divided into three segments. The first segment focuses on the introduction to clean energy, clean technology and clean energy products. Second segment focuses on the sustainable energy business model in rural areas of South Odisha, where a Digital Business Centre (DBC) was established. Finally the third segment focuses on the strategies for marketing of clean energy products and an Entrepreneurial-cum-SHG Model. Methodology/design/approach: In this study, a descriptive case technique was employed, and instances were purposefully chosen. Data was gathered to better comprehend the theoretical ideas of actors, factors, and their relationships, as well as to create the conceptual framework. The framework’s applicability was tested using an action research approach (partial intervention in the ecosystem). Findings: Variety of players and variables were identified, and their relationships were established. Originality/value- An innovative strategy to clean energy intervention for income generation was established and a sense of entrepreneurial attitude was also developed.

Predicting acceptance and adoption of renewable energy community solutions: the prosumer psychology.

Background: This paper, in the frame of social acceptance of renewable energies and innovative community-based production and consumption models, aims at supporting a data-driven approach able to deal with climate change and identify and quantify the psycho-sociological dimensions and factors that could support the transition from a technology-driven approach to a consumer-driven approach throughout the emerging " prosumer business models". In addition to the already existing Social Acceptance dimensions, this paper tries to identify a purely individual psychological fourth dimension to understand the processes and factors that underlie individual acceptance and adoption of new renewable energy business models, with the realization of a Prosumer Acceptance Index. Methods: Questionnaire data collection has been performed throughout an online survey platform, combining standardized and ad-hoc questions adapted for the research purposes, based on the developed theoretical model. To identify the main factors (individual/social) influencing the relation with renewable energy technology adoption, a Factorial Analysis has been conducted to identify the latent variables that are related to each other. Linear regression has been conducted to identify and quantify the factors that could better predict behavioural intention to become a prosumer. Results: Five latent psychological factors were revealed: concern about environmental issues, interest in energy sharing, concern on climate change, social influence and impact on bill cost. Three variables were found to significantly measure and predict the scores of the "Acceptance in becoming a prosumer" ad hoc scale: attitude, economic incentive and age. Conclusions: This research can facilitate policymakers and stakeholders to better understand which relevant psycho-sociological factors are intervening in the renewable energy technology acceptance processes and what and how specifically target when proposing change towards sustainable energy production and consumption.

Circular economy principles in community energy initiatives through stakeholder perspectives

The world is looking toward clean and reliable energy solutions that could empower society to mitigate carbon emissions and provide a sustainable way ahead. The circular economy (CE) principles in community energy initiatives can help shift the existing energy pattern and transform society to better understand the Sustainable Development Goals (SDGs). This study aims to structure and evaluate the preference of stakeholders' objectives for community energy formation in the era of the CE to accelerate clean energy transitions. The conscious use of energy while participating in energy projects helps reduce energy consumption, reuse waste, and redesign community grid expansion with climate protection objectives. These links are explored systematically by integrating the value-focused thinking (VFT) approach and analytical hierarchy process (AHP). Using the VFT approach helped uncover strategic objectives of maximizing values of community energy using CE measures. Moreover, AHP assisted in identifying the preferred set of values as the results indicate that technical categories are fundamental pressure points for implementing CE principles in such initiatives. This study's contribution falls at the intersection of these concepts, where community energy initiatives provide a platform to integrate CE strategies. This study helps realize the rebound effects of consumer-centric community energy initiatives considering CE principles from a governance literature perspective. From a strategical standpoint, it signifies the potential links between CE and community energy initiatives. The adoption of CE measures has been seen as a “win-win” solution to the community energy business models and improves economic, environmental, and social sustainability.

The application of blockchain technology in smart sustainable energy business model

Blockchain technology is considered to be a disruptive technology that has real potential for change after steam engines, electricity, and the Internet. However, in terms of power generation, the current level of hydropower development in my country is only 39%. Compared with developed countries, there is still a big gap and a high development space. This article proposes a research on the application of blockchain technology in smart sustainable energy business models, studies the conversion path of sustainable energy systems, introduces integrated energy service blockchain technology, and builds a sustainable energy transition model. The selection of practical dimensions requires both Quantitative indicators also require cultural and behavioral qualitative indicators; finally, through the analysis of social development trends and government policies, the external variable landscape signals are parameterized. Sustainable energy rather than fossil energy is the energy of the future. Weak landscape signals have significantly weakened the development of the sustainable energy niche: the proportion of coal consumption has declined slowly. Although it has transformed from a system to a niche, it has always been higher than that of other energy types. Only with long-term landscape pressure, positive changes to sustainable energy technologies and infrastructure, and continuous changes in consumer preferences, can sustainable energy ultimately dominate.

Security of Energy Interests of Enterprises: Innovative Competencies of Personnel, Public Administration and Role of Exchange Trade

The article proposes a methodology for assessing the state of security of energy interests of enterprises. In order to apply this methodology, security of energy interests is split into two components: security of energy efficiency and that of energy supply. Indicators and their corresponding liminal values are set for each of the components. A feature of the proposed assessment methodology is that it takes into account the speed at which actual security indicators can reach their liminal value. Application of the methodology allows us to conclude about the need for managerial intervention, decision-making and taking appropriate measures to improve security of energy interests as a whole and its individual components. The calculations conducted reveal that the actual indicators of energy supply security in 2018-2019 were equal to 1 at all mining enterprises of Ukraine. According to the value interpretation scale developed in the study, this value means that the state of security of energy supply was excellent (very high). In contrast, the state of energy efficiency security was not so stable and tended to deteriorate. The catastrophic state of energy efficiency security was detected at one of the mining enterprises under study, namely the PrJSC InGZK, in 2019, as the corresponding security indicator equaled zero. The obtained values of the state of security of energy efficiency are determinant for the general state of security of energy interests of the enterprises under study. In the article there are presented four directions to ensure security of energy interests of mining and metallurgical enterprises. The first direction provides for improvement of government regulation of the energy market. The second direction deals with reorientation of the production apparatus and introduction of resource-saving technologies that are to dramatically reduce energy and fuel intensity. The third direction involves more active participation in energy exchange trading. The fourth direction consists in attracting and training employees in new competencies and professions necessary for development, introduction and implementation of innovative energy-saving technologies at the enterprises and transition to an energy business model.

Rural renewable energy development: lessons learned from community-based renewable energy business model in East Sumba, Indonesia

Abstract Sumba Island is a remote region with great potential for renewable energy sources, as the Iconic Island of Renewable Energy designated through the Minister of Energy and Mineral Resources Decree No. 3051 K / 30 / MEM / 2015 is targeted to reach 100% of renewable energy usage with 95% of electrification by 2025. To reach this target, the participation of the community as the subject of every renewable energy project is essential. This paper aims to identify the lessons learned to enhance the community’s capacity in implementing the rural community-based renewable energy business model in Indonesia, with the case of the renewable energy business in Luku Wingir and Waimbidi Village - East Sumba. The result indicates that the Rural Community-based Renewable Energy Business Model in the case study need to be developed based on the fundamental strategies of building community capacity: (1) leadership development of the village community in East Sumba, (2) business organizational development in managing the renewable energy, (3) developing a significant role for the community in organizing renewable energy, and (4) adapting collaborative relations among multiple stakeholders in East Sumba.

Anticipating customer-centred zero-carbon energy business models

Anticipating customer-centred zero-carbon energy business models

Social Media Engagement in Shaping Green Energy Business Models

Recent years have seen an increase in the role of social media in the communication of energy sector companies (ESCs) with consumers. Currently, consumers look for information, create it themselves, and share it with other Internet users. eWOM communication means that energy companies, firstly, must be present in social media so that consumers can get to know them better, and secondly, they must consciously shape their image according to the expectations of their customers. One-way communication, such as customer satisfaction measurements, is no longer enough to know their preferences. Market trends indicate that for current buyers—both consumer and non-consumer products—the image of a “green product” or a “green company” is expected. Only a few companies report that they are harmful for environment. All companies report that they are generally community friendly. The consumer would like to know, in particular, about the harmfulness to the environment. Thus, there is a knowledge gap that the companies are not filling. In addition to the advertised satisfaction indicators, you can also test customers’ perceptions of environmental responsibility. That is, the research and results in the area of social responsibility must also be accompanied by environmental responsibility. Therefore, the article aims to indicate whether the level of consumer engagement in social media affects the perception of the green energy business model and how the attitude and pro-environmental behavior of social media users affects this perception. The paper also identifies factors related to social media that influence the perception of ESCs.

The clean energy claims of BP, Chevron, ExxonMobil and Shell: A mismatch between discourse, actions and investments.

The energy products of oil and gas majors have contributed significantly to global greenhouse gas emissions (GHG) and planetary warming over the past century. Decarbonizing the global economy by mid-century to avoid dangerous climate change thus cannot occur without a profound transformation of their fossil fuel-based business models. Recently, several majors are increasingly discussing clean energy and climate change, pledging decarbonization strategies, and investing in alternative energies. Some even claim to be transforming into clean energy companies. Given a history of obstructive climate actions and “greenwashing”, there is a need to objectively evaluate current and historical decarbonization efforts and investment behavior. This study focuses on two American (Chevron, ExxonMobil) and two European majors (BP, Shell). Using data collected over 2009–2020, we comparatively examine the extent of decarbonization and clean energy transition activity from three perspectives: (1) keyword use in annual reports (discourse); (2) business strategies (pledges and actions); and (3) production, expenditures and earnings for fossil fuels along with investments in clean energy (investments). We found a strong increase in discourse related to “climate”, “low-carbon” and “transition”, especially by BP and Shell. Similarly, we observed increasing tendencies toward strategies related to decarbonization and clean energy. But these are dominated by pledges rather than concrete actions. Moreover, the financial analysis reveals a continuing business model dependence on fossil fuels along with insignificant and opaque spending on clean energy. We thus conclude that the transition to clean energy business models is not occurring, since the magnitude of investments and actions does not match discourse. Until actions and investment behavior are brought into alignment with discourse, accusations of greenwashing appear well-founded.

Secured energy ecosystems under Distributed Energy Resources penetration

Renewable energy systems have mushroomed in the form of microgrids and Virtual Power Plants (VPP). In Australia itself, there are over three million Distributed Energy Resources (DERs). Integrating these new energy ecosystems into current systems is becoming a horrendous task as multi-dimensional energy flows and new energy business models are evolving. The stakeholders in the energy sector are focused on reducing costs prematurely while integration standards are still evolving, and interoperability of Internet of things (IoT) with legacy systems has outstanding security concerns. In this paper, the changing energy landscape is examined, and cybersecurity issues associated with the operation of VPPs and renewable energy-based microgrids are highlighted. The security and operational scenarios of new ecosystems are outlined, with an emphasis on DER interoperability, security, and integration. The design and development of these evolving standards into these new energy ecosystems is detailed based on observations from experiments on real-world DER installations. This paper is an extension of work originally reported in proceedings of the 31st Australasian Universities Power Engineering Conference [1].