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Business Model Innovation for the Energy Market: Joint Value Creation for Electricity Retailers and their Residential Customers

Author

Listed:
  • Karami, Mahdi

    (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

  • Madlener, Reinhard

    (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

Abstract

The objective of the present study is to explore and better understand how business model inno- vation and technology trends have in uenced electricity suppliers in the electricity retail market. We investigate how electricity suppliers can create and deliver values to private customers and capture the market for themselves through innovative technology and business models. To reach this goal, the collected data from eleven different European existing business models were analyzed and sorted in a systematic way with the "Business Model Canvas" approach (Osterwalder and Pigneur, 2010). To cluster the real world business models investigated, an identification of the applied patterns was carried out according to the "Business Model Navigator". We find that successful retailers are those companies which try to take a more consumer-centric perspective for creating extra value, while en- abling and fostering more sustainable and energy-efficient lifestyles based on the smart orchestration of increasingly distributed energy resources.

Suggested Citation

  • Karami, Mahdi & Madlener, Reinhard, 2018. "Business Model Innovation for the Energy Market: Joint Value Creation for Electricity Retailers and their Residential Customers," FCN Working Papers 15/2018, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    • Handle: RePEc:ris:fcnwpa:2018_015
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    References listed on IDEAS

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    2. Specht, Jan Martin & Madlener, Reinhard, 2018. "Business Models for Energy Suppliers Aggregating Flexible Distributed Assets and Policy Issues Raised," FCN Working Papers 7/2018, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
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    Cited by:

    1. Wolff, Stefanie & Madlener, Reinhard, 2019. "Charged up? Preferences for Electric Vehicle Charging and Implications for Charging Infrastructure Planning," FCN Working Papers 3/2019, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    2. Liu, Xueying & Madlener, Reinhard, 2021. "The sky is the limit: Assessing aircraft market diffusion with agent-based modeling," Journal of Air Transport Management, Elsevier, vol. 96(C).
    3. Liu, Xueying & Madlener, Reinhard, 2019. "Get Ready for Take-Off: A Two-Stage Model of Aircraft Market Diffusion," FCN Working Papers 15/2019, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).

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    More about this item

    Keywords

    Electricity suppliers; business model innovation; value creation; private customers; electricity self-sufficient;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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