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Business model innovation in electricity supply markets: The role of complex value in the United Kingdom

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  • Hall, Stephen
  • Roelich, Katy

Abstract

This research investigates the new opportunities that business model innovations are creating in electricity supply markets at the sub-national scale. These local supply business models can offer significant benefits to the electricity system, but also generate economic, social, and environmental values that are not well accounted for in current policy or regulation. This paper uses the UK electricity supply market to investigate new business models which rely on more complex value propositions than the incumbent utility model. Nine archetypal local supply business models are identified and their value propositions, value capture methods, and barriers to market entry are analysed. This analysis defines 'complex value' as a key concept in understanding business model innovation in the energy sector. The process of complex value identification poses a challenge to energy researchers, commercial firms and policymakers in liberalised markets; to investigate the opportunities for system efficiency and diverse outcomes that new supplier business models can offer to the electricity system.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:enepol:v:92:y:2016:i:c:p:286-298
    DOI: 10.1016/j.enpol.2016.02.019
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    18. Michael Hamwi & Iban Lizarralde, 2019. "Demand-side management and renewable energy business models for energy transition A systematic review," Post-Print hal-02448505, HAL.
    19. Sorknæs, P. & Lund, Henrik & Skov, I.R. & Djørup, S. & Skytte, K. & Morthorst, P.E. & Fausto, F., 2020. "Smart Energy Markets - Future electricity, gas and heating markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
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    21. Specht, Jan Martin & Madlener, Reinhard, 2019. "Energy Supplier 2.0: A conceptual business model for energy suppliers aggregating flexible distributed assets and policy issues raised," Energy Policy, Elsevier, vol. 135(C).
    22. Christoph Mazur & Stephen Hall & Jeffrey Hardy & Mark Workman, 2019. "Technology is not a Barrier: A Survey of Energy System Technologies Required for Innovative Electricity Business Models Driving the Low Carbon Energy Revolution," Energies, MDPI, Open Access Journal, vol. 12(3), pages 1-13, January.

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