IDEAS home Printed from https://ideas.repec.org/p/cam/camdae/1956.html
   My bibliography  Save this paper

Digitalisation and New Business Models in Energy Sector

Author

Listed:
  • Küfeoğlu, S.
  • Liu, G.
  • Anaya, K.
  • Pollitt, M.

Abstract

This paper reviews digitalisation in energy sector by looking at the business models of 40 interesting new start-up energy companies from around the world. These start-ups have been facilitated by the rise of distributed generation, much of it intermittent in nature. We review Artificial Intelligence (AI), Machine Learning, Deep Learning and Blockchain applications in energy sector. We discuss the rise of prosumers and small-scale renewable generation, highlighting the role of Feed-in-Tariffs (FITs), the Distribution System Platform concept and the potential for Peer-to-Peer (P2P) trading. Our aim is to help energy regulators calibrate their support new business models.

Suggested Citation

  • Küfeoğlu, S. & Liu, G. & Anaya, K. & Pollitt, M., 2019. "Digitalisation and New Business Models in Energy Sector," Cambridge Working Papers in Economics 1956, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1956
    Note: mgp20
    as

    Download full text from publisher

    File URL: http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe1956.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Khan, Agha Salman M. & Verzijlbergh, Remco A. & Sakinci, Ozgur Can & De Vries, Laurens J., 2018. "How do demand response and electrical energy storage affect (the need for) a capacity market?," Applied Energy, Elsevier, vol. 214(C), pages 39-62.
    2. Fróes Lima, Carlos Alberto & Portillo Navas, José Ricardo, 2012. "Smart metering and systems to support a conscious use of water and electricity," Energy, Elsevier, vol. 45(1), pages 528-540.
    3. Giotitsas, Chris & Pazaitis, Alex & Kostakis, Vasilis, 2015. "A peer-to-peer approach to energy production," Technology in Society, Elsevier, vol. 42(C), pages 28-38.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karim L. Anaya & Michael G. Pollitt, 2021. "How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects," Energies, MDPI, vol. 14(15), pages 1-26, July.
    2. Wu, Ying & Wu, Yanpeng & Guerrero, Josep M. & Vasquez, Juan C., 2021. "A comprehensive overview of framework for developing sustainable energy internet: From things-based energy network to services-based management system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    3. Vladimir Franki & Darin Majnarić & Alfredo Višković, 2023. "A Comprehensive Review of Artificial Intelligence (AI) Companies in the Power Sector," Energies, MDPI, vol. 16(3), pages 1-35, January.
    4. Olga V. Loseva & Svetlana V. Karpova & Konstantin O. Rasteryaev & Elizaveta S. Sokolova & Svetlana V. Makar & Khvicha P. Kharchilava, 2020. "Sustainable Energy in Island States: Comparative Analysis of New Trends in Energy Digitalization and the Experience of the UK, Japan, Indonesia and Cyprus," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 722-731.
    5. Piotr F. Borowski, 2021. "Digitization, Digital Twins, Blockchain, and Industry 4.0 as Elements of Management Process in Enterprises in the Energy Sector," Energies, MDPI, vol. 14(7), pages 1-20, March.
    6. Hiteva, Ralitsa & Foxon, Timothy J., 2021. "Beware the value gap: Creating value for users and for the system through innovation in digital energy services business models," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    7. Teresa Pakulska & Małgorzata Poniatowska-Jaksch, 2022. "Digitalization in the Renewable Energy Sector—New Market Players," Energies, MDPI, vol. 15(13), pages 1-21, June.
    8. Michael G. Pollitt and Karim L. Anaya, 2020. "Competition in Markets for Ancillary Services? The Implications of Rising Distributed Generation," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    9. Sławomir Bielecki & Tadeusz Skoczkowski & Lidia Sobczak & Marcin Wołowicz, 2022. "Electricity Usage Settlement System Based on a Cryptocurrency Instrument," Energies, MDPI, vol. 15(19), pages 1-35, September.
    10. Barbara Siuta-Tokarska & Sylwia Kruk & Paweł Krzemiński & Agnieszka Thier & Katarzyna Żmija, 2022. "Digitalisation of Enterprises in the Energy Sector: Drivers—Business Models—Prospective Directions of Changes," Energies, MDPI, vol. 15(23), pages 1-21, November.
    11. Heymann, Fabian & Milojevic, Tatjana & Covatariu, Andrei & Verma, Piyush, 2023. "Digitalization in decarbonizing electricity systems – Phenomena, regional aspects, stakeholders, use cases, challenges and policy options," Energy, Elsevier, vol. 262(PB).
    12. Duch-Brown, Néstor & Rossetti, Fiammetta, 2020. "Digital platforms across the European regional energy markets," Energy Policy, Elsevier, vol. 144(C).
    13. Jan Brzóska & Lilla Knop & Monika Odlanicka-Poczobutt & Dagmara K. Zuzek, 2022. "Antecedents of Creating Business Models in the Field of Renewable Energy Based on the Concept of the New Age of Innovation," Energies, MDPI, vol. 15(15), pages 1-25, July.
    14. Piotr F. Borowski, 2020. "Zonal and Nodal Models of Energy Market in European Union," Energies, MDPI, vol. 13(16), pages 1-21, August.
    15. Mahendra Singh & Jiao Jiao & Marian Klobasa & Rainer Frietsch, 2022. "Servitization of Energy Sector: Emerging Service Business Models and Startup’s Participation," Energies, MDPI, vol. 15(7), pages 1-20, April.
    16. Tim Schittekatte & Valerie Reif & Leonardo Meeus, 2021. "Welcoming New Entrants into European Electricity Markets," Energies, MDPI, vol. 14(13), pages 1-20, July.
    17. Justyna Światowiec-Szczepańska & Beata Stępień, 2022. "Drivers of Digitalization in the Energy Sector—The Managerial Perspective from the Catching Up Economy," Energies, MDPI, vol. 15(4), pages 1-25, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chou, Jui-Sheng & Gusti Ayu Novi Yutami, I, 2014. "Smart meter adoption and deployment strategy for residential buildings in Indonesia," Applied Energy, Elsevier, vol. 128(C), pages 336-349.
    2. Deakin, Matthew & Bloomfield, Hannah & Greenwood, David & Sheehy, Sarah & Walker, Sara & Taylor, Phil C., 2021. "Impacts of heat decarbonization on system adequacy considering increased meteorological sensitivity," Applied Energy, Elsevier, vol. 298(C).
    3. Dexter V. L. Hunt & Zeerak Shahab, 2021. "Sustainable Water Use Practices: Understanding and Awareness of Masters Level Students," Sustainability, MDPI, vol. 13(19), pages 1-29, September.
    4. Fettermann, Diego Castro & Cavalcante, Caroline Gobbo Sá & Ayala, Néstor Fabián & Avalone, Marianne Costa, 2020. "Configuration of a smart meter for Brazilian customers," Energy Policy, Elsevier, vol. 139(C).
    5. Nima Mirzaei Alavijeh & David Steen & Zack Norwood & Le Anh Tuan & Christos Agathokleous, 2020. "Cost-Effectiveness of Carbon Emission Abatement Strategies for a Local Multi-Energy System—A Case Study of Chalmers University of Technology Campus," Energies, MDPI, vol. 13(7), pages 1-23, April.
    6. Máximo A. Domínguez-Garabitos & Víctor S. Ocaña-Guevara & Félix Santos-García & Adriana Arango-Manrique & Miguel Aybar-Mejía, 2022. "A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market," Energies, MDPI, vol. 15(4), pages 1-28, February.
    7. Savelli, Iacopo & Cornélusse, Bertrand & Giannitrapani, Antonio & Paoletti, Simone & Vicino, Antonio, 2018. "A new approach to electricity market clearing with uniform purchase price and curtailable block orders," Applied Energy, Elsevier, vol. 226(C), pages 618-630.
    8. Cinzia Bonaldo & Fulvio Fontini & Michele Moretto, 2022. "The Energy Transition and the Value of Capacity Remuneration Mechanisms," Working Papers 2022.16, Fondazione Eni Enrico Mattei.
    9. Paul Adrianus van Baal, 2020. "Effectiveness of a strategic energy reserve during the energy transition: The case of Switzerland," Competition and Regulation in Network Industries, , vol. 21(2), pages 65-90, June.
    10. Hoffmann, Martha M. & Ansari, Dawud, 2019. "Simulating the potential of swarm grids for pre-electrified communities – A case study from Yemen," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 108, pages 289-302.
    11. Hong, Seung Ho & Kim, Se Hwan & Kim, Gi Myung & Kim, Hyung Lae, 2014. "Experimental evaluation of BZ-GW (BACnet-ZigBee smart grid gateway) for demand response in buildings," Energy, Elsevier, vol. 65(C), pages 62-70.
    12. Lüth, Alexandra & Zepter, Jan Martin & Crespo del Granado, Pedro & Egging, Ruud, 2018. "Local electricity market designs for peer-to-peer trading: The role of battery flexibility," Applied Energy, Elsevier, vol. 229(C), pages 1233-1243.
    13. Anna Szeląg-Sikora & Jakub Sikora & Marcin Niemiec & Zofia Gródek-Szostak & Marcin Suder & Maciej Kuboń & Tomasz Borkowski & Gabriela Malik, 2021. "Solar Power: Stellar Profit or Astronomic Cost? A Case Study of Photovoltaic Installations under Poland’s National Prosumer Policy in 2016–2020," Energies, MDPI, vol. 14(14), pages 1-17, July.
    14. Sousa, Tiago & Soares, Tiago & Pinson, Pierre & Moret, Fabio & Baroche, Thomas & Sorin, Etienne, 2019. "Peer-to-peer and community-based markets: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 367-378.
    15. Henri van Soest, 2018. "Peer-to-peer electricity trading: A review of the legal context," Competition and Regulation in Network Industries, , vol. 19(3-4), pages 180-199, September.
    16. Gjoka, Kristian & Rismanchi, Behzad & Crawford, Robert H., 2023. "Fifth-generation district heating and cooling systems: A review of recent advancements and implementation barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    17. Meritxell Domènech Monfort & César De Jesús & Natapon Wanapinit & Niklas Hartmann, 2022. "A Review of Peer-to-Peer Energy Trading with Standard Terminology Proposal and a Techno-Economic Characterisation Matrix," Energies, MDPI, vol. 15(23), pages 1-29, November.
    18. Thomaßen, Georg & Redl, Christian & Bruckner, Thomas, 2022. "Will the energy-only market collapse? On market dynamics in low-carbon electricity systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).
    19. Annesi, Nora & Battaglia, Massimo & Frey, Marco, 2021. "Stakeholder engagement by an Italian water utility company: Insight from participant observation of dialogism," Utilities Policy, Elsevier, vol. 72(C).
    20. Kobashi, Takuro & Yoshida, Takahiro & Yamagata, Yoshiki & Naito, Katsuhiko & Pfenninger, Stefan & Say, Kelvin & Takeda, Yasuhiro & Ahl, Amanda & Yarime, Masaru & Hara, Keishiro, 2020. "On the potential of “Photovoltaics + Electric vehicles” for deep decarbonization of Kyoto’s power systems: Techno-economic-social considerations," Applied Energy, Elsevier, vol. 275(C).

    More about this item

    Keywords

    Feed-in tariff; Distribution System Platform; Peer-to-Peer; Blockchain;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cam:camdae:1956. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jake Dyer (email available below). General contact details of provider: https://www.econ.cam.ac.uk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.