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Non-traditional business models for city-scale energy storage: evidence from UK case studies

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  • Andrew Burlinson

    (University of Loughborough)

  • Monica Giulietti

    (University of Loughborough)

Abstract

This paper investigates emerging non-traditional business models for decentralised energy systems with a focus on the role of city-scale storage technologies. We discuss the key characteristics of the different business models which have been identified in the literature and we discuss case studies across the United Kingdom in order to illustrate the key factors which influence their adoption and implementation. On the basis of evidence from recent UK case studies we investigate the market and regulatory barriers, contractual and transactional issues which may prevent key actors from exploiting the full market potential of their assets. We find that emerging business models rely on a range of different revenue sources with some limitations due to complex contractual relations, regulatory barriers and limited access to markets for ancillary services. The evidence we provide can be used by companies and organisations intending to operate in this fast developing market and inform policymakers aiming to promote the expansion and improvement of emerging business models.

Suggested Citation

  • Andrew Burlinson & Monica Giulietti, 2018. "Non-traditional business models for city-scale energy storage: evidence from UK case studies," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(2), pages 215-242, June.
    • Handle: RePEc:spr:epolin:v:45:y:2018:i:2:d:10.1007_s40812-017-0083-8
    DOI: 10.1007/s40812-017-0083-8
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Pepa Ambrosio-Albalá & Catherine S. E. Bale & Andrew J. Pimm & Peter G. Taylor, 2020. "What Makes Decentralised Energy Storage Schemes Successful? An Assessment Incorporating Stakeholder Perspectives," Energies, MDPI, vol. 13(24), pages 1-22, December.
    2. Ambrosio-Albala, P. & Upham, P. & Bale, C.S.E. & Taylor, P.G., 2020. "Exploring acceptance of decentralised energy storage at household and neighbourhood scales: A UK survey," Energy Policy, Elsevier, vol. 138(C).
    3. Amar Hisham Jaaffar & Nurshahirah Abd Majid & Bakhtiar Alrazi & Vigna K. Ramachandaramurty & Nofri Yenita Dahlan, 2022. "Determinants of Residential Consumers’ Acceptance of a Utility-Scale Battery Energy Storage System in Malaysia: Technology Acceptance Model Theory from a Different Perspective," Energies, MDPI, vol. 15(16), pages 1-17, August.
    4. Martins, Jason & Miles, John, 2021. "A techno-economic assessment of battery business models in the UK electricity market," Energy Policy, Elsevier, vol. 148(PB).
    5. Bögel, Paula Maria & Upham, Paul & Shahrokni, Hossein & Kordas, Olga, 2021. "What is needed for citizen-centered urban energy transitions: Insights on attitudes towards decentralized energy storage," Energy Policy, Elsevier, vol. 149(C).
    6. Soheil Mohseni & Jay Rutovitz & Heather Smith & Scott Dwyer & Farzan Tahir, 2023. "Economic Viability Assessment of Neighbourhood versus Residential Batteries: Insights from an Australian Case Study," Sustainability, MDPI, vol. 15(23), pages 1-27, November.
    7. Sanneke Kloppenburg & Robin Smale & Nick Verkade, 2019. "Technologies of Engagement: How Battery Storage Technologies Shape Householder Participation in Energy Transitions," Energies, MDPI, vol. 12(22), pages 1-15, November.

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    More about this item

    Keywords

    Technology adoption; Energy industry; Business models; Storage;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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