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When digitalization pervades, business models converge: A conceptual model for the electricity industry

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  • Fuentes, Rolando
  • Fattouh, Bassam

Abstract

While decarbonization in the electricity sector has been studied extensively, less attention has been paid to the digital transition. Not only can digital technologies improve efficiency and reduce operational costs in this sector, but they can also enable new energy ecosystems, create new business models, and accelerate the energy transition itself. We present a conceptual model that offers insights into three key areas: (1) industry structure, (2) end products, and (3) pricing strategies. Our recommendations are tailored to help energy firms, startups, and digital companies navigate these evolving dynamics. While the focus is on the electricity markets, these insights hold broader relevance and can be effectively applied to other industries responding to digital transformation.

Suggested Citation

  • Fuentes, Rolando & Fattouh, Bassam, 2026. "When digitalization pervades, business models converge: A conceptual model for the electricity industry," Business Horizons, Elsevier, vol. 69(1), pages 101-111.
    • Handle: RePEc:eee:bushor:v:69:y:2026:i:1:p:101-111
    DOI: 10.1016/j.bushor.2025.01.003
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