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A business model taxonomy for smart demand response in the residential sector

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  • Kangas, Hanna-Liisa
  • Ruggiero, Salvatore
  • Annala, Salla

Abstract

This study develops a taxonomy of business models for smart demand response (DR) in the residential sector, focusing on a Nordic country: Finland. The research addresses the growing need for innovative DR solutions to enhance energy system flexibility as renewable energy sources become more prevalent. Through 18 qualitative interviews with Finnish DR companies, the study identifies and categorises business models into four distinct types: smart building services, energy company demand response, solar power demand response, and the Airbnb equivalent for electric appliances. Each model reflects different strategies for integrating DR technologies and services with existing market structures. The taxonomy provides a systematic framework for understanding and comparing these business models, highlighting their potential for market upscaling and contributing to the sustainable development of smart energy solutions in the residential sector.

Suggested Citation

  • Kangas, Hanna-Liisa & Ruggiero, Salvatore & Annala, Salla, 2026. "A business model taxonomy for smart demand response in the residential sector," Energy, Elsevier, vol. 348(C).
    • Handle: RePEc:eee:energy:v:348:y:2026:i:c:s0360544226006705
    DOI: 10.1016/j.energy.2026.140567
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