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Business models of heat entrepreneurship in Finland

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  • Okkonen, Lasse
  • Suhonen, Niko

Abstract

This paper presents the business models of small-scale heat energy production in Finland. Firstly, the development of heat entrepreneurship in the country is presented, including the remarkable growth of small and medium size enterprises (SMEs) in the last 15 years. Secondly, the concept of business model (business architecture of product/service flows and earning logics) is modified to the framework of wood heat production. The business model concept, and its sub-concepts, is applied in a brief review of current heat energy businesses in Finland. We arrive at a business model of heat entrepreneurships that are public companies/utilities, public-private partnerships, private companies and cooperatives, Energy Saving Company (ESCO), network model of large enterprise and franchising. Descriptive cases of these models are presented. Finally, the paper concludes with a discussion on the applicability of the business models in different operational environments and geographical contexts.

Suggested Citation

  • Okkonen, Lasse & Suhonen, Niko, 2010. "Business models of heat entrepreneurship in Finland," Energy Policy, Elsevier, vol. 38(7), pages 3443-3452, July.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:7:p:3443-3452
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    References listed on IDEAS

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    1. Lasse Okkonen, 2008. "From exogenous to endogenous development in Scottish forestry: the feasibility of small-scale wood energy enterprise," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 51(2), pages 221-232.
    2. Bertoldi, Paolo & Rezessy, Silvia & Vine, Edward, 2006. "Energy service companies in European countries: Current status and a strategy to foster their development," Energy Policy, Elsevier, vol. 34(14), pages 1818-1832, September.
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    Citations

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    Cited by:

    1. Jesús Rodríguez-Molina & Margarita Martínez-Núñez & José-Fernán Martínez & Waldo Pérez-Aguiar, 2014. "Business Models in the Smart Grid: Challenges, Opportunities and Proposals for Prosumer Profitability," Energies, MDPI, Open Access Journal, vol. 7(9), pages 1-30, September.
    2. Kindström, Daniel & Ottosson, Mikael, 2016. "Local and regional energy companies offering energy services: Key activities and implications for the business model," Applied Energy, Elsevier, pages 491-500.
    3. Richter, Mario, 2012. "Utilities’ business models for renewable energy: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2483-2493.
    4. Juntunen, Jouni K. & Hyysalo, Sampsa, 2015. "Renewable micro-generation of heat and electricity—Review on common and missing socio-technical configurations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 857-870.
    5. Kimming, M. & Sundberg, C. & Nordberg, Å. & Hansson, P.-A., 2015. "Vertical integration of local fuel producers into rural district heating systems – Climate impact and production costs," Energy Policy, Elsevier, vol. 78(C), pages 51-61.
    6. Suhonen, Niko & Okkonen, Lasse, 2013. "The Energy Services Company (ESCo) as business model for heat entrepreneurship-A case study of North Karelia, Finland," Energy Policy, Elsevier, vol. 61(C), pages 783-787.
    7. Gabriel, Cle-Anne, 2016. "What is challenging renewable energy entrepreneurs in developing countries?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 362-371.
    8. Pantaleo, Antonio & Candelise, Chiara & Bauen, Ausilio & Shah, Nilay, 2014. "ESCO business models for biomass heating and CHP: Profitability of ESCO operations in Italy and key factors assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 237-253.
    9. Löbbe, Sabine & Hackbarth, André, 2017. "Geschäftsmodelle in der Energiewirtschaft: Ein Kompendium von der Methodik bis zur Anwendung," Reutlingen Working Papers on Marketing & Management 2017-03, Reutlingen University, ESB Business School.
    10. Tongsopit, Sopitsuda & Moungchareon, Sunee & Aksornkij, Apinya & Potisat, Tanai, 2016. "Business models and financing options for a rapid scale-up of rooftop solar power systems in Thailand," Energy Policy, Elsevier, vol. 95(C), pages 447-457.
    11. Karakaya, Emrah & Nuur, Cali & Hidalgo, Antonio, 2016. "Business model challenge: Lessons from a local solar company," Renewable Energy, Elsevier, vol. 85(C), pages 1026-1035.
    12. Hall, Stephen & Roelich, Katy, 2016. "Business model innovation in electricity supply markets: The role of complex value in the United Kingdom," Energy Policy, Elsevier, vol. 92(C), pages 286-298.
    13. Engelken, Maximilian & Römer, Benedikt & Drescher, Marcus & Welpe, Isabell M. & Picot, Arnold, 2016. "Comparing drivers, barriers, and opportunities of business models for renewable energies: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 795-809.
    14. Richter, Mario, 2013. "Business model innovation for sustainable energy: German utilities and renewable energy," Energy Policy, Elsevier, vol. 62(C), pages 1226-1237.
    15. repec:eee:enepol:v:109:y:2017:i:c:p:230-248 is not listed on IDEAS
    16. Majbouri, Mahdi, 2016. "Oil and entrepreneurship," Energy Policy, Elsevier, vol. 94(C), pages 10-15.

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