IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i4p3604-d1069835.html
   My bibliography  Save this article

New Business Models in the Energy Sector in the Context of Revolutionary Transformations

Author

Listed:
  • Lazar Gitelman

    (Department of Energy and Industrial Management System, Ural Federal University, 620002 Ekaterinburg, Russia)

  • Mikhail Kozhevnikov

    (Department of Energy and Industrial Management System, Ural Federal University, 620002 Ekaterinburg, Russia)

Abstract

The relevance of the problem of improving business models in the energy industry has become especially acute in recent years due to the energy transition, the emergence of new energy production and consumption technologies, and the increase in environmental requirements for energy companies’ performance. The purpose of the study is to form recommendations for creating business models in energy companies that meet modern realities and ensure the sustainable development of the energy business in an environment that is characterized by increased uncertainty and aggressive competition. Based on the analysis of scientific publications and the systematization of industry cases, it is proved that business models in the energy sector are likely to transform in the following three aspects: implementation of green technologies as a response to the public demand for clean energy; spatial organization of production based on platforms and digital tools; and active implementation of customized knowledge-intensive services. This article discusses the development of the social investment concept, the key factors affecting its implementation in the energy sector and related industries, and its risks and limitations in the times of energy crises. It is justified that new business models require changes in energy market infrastructure and strategic management principles. In this regard, the authors developed recommendations for the adaptation of the wholesale and retail electricity and power market to the structural, technological, and economic transformations in the energy production and consumption areas. The main advantages, barriers, and ideas for the effective implementation of innovative business models in energy companies are verified through an expert survey.

Suggested Citation

  • Lazar Gitelman & Mikhail Kozhevnikov, 2023. "New Business Models in the Energy Sector in the Context of Revolutionary Transformations," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:4:p:3604-:d:1069835
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/4/3604/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/4/3604/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mohammad Mohammadi Roozbehani & Ehsan Heydarian-Forushani & Saeed Hasanzadeh & Seifeddine Ben Elghali, 2022. "Virtual Power Plant Operational Strategies: Models, Markets, Optimization, Challenges, and Opportunities," Sustainability, MDPI, vol. 14(19), pages 1-23, September.
    2. Jan Brzóska & Lilla Knop & Monika Odlanicka-Poczobutt & Dagmara K. Zuzek, 2022. "Antecedents of Creating Business Models in the Field of Renewable Energy Based on the Concept of the New Age of Innovation," Energies, MDPI, vol. 15(15), pages 1-25, July.
    3. Chun Xia-Bauer & Florin Vondung & Stefan Thomas & Raphael Moser, 2022. "Business Model Innovations for Renewable Energy Prosumer Development in Germany," Sustainability, MDPI, vol. 14(13), pages 1-17, June.
    4. Christoph Zott & Raphael Amit, 2008. "The fit between product market strategy and business model: implications for firm performance," Strategic Management Journal, Wiley Blackwell, vol. 29(1), pages 1-26, January.
    5. Teresa Pakulska & Małgorzata Poniatowska-Jaksch, 2022. "Digitalization in the Renewable Energy Sector—New Market Players," Energies, MDPI, vol. 15(13), pages 1-21, June.
    6. Kindström, Daniel & Ottosson, Mikael, 2016. "Local and regional energy companies offering energy services: Key activities and implications for the business model," Applied Energy, Elsevier, vol. 171(C), pages 491-500.
    7. Nathalie Rodet-Kroichvili & Katy Cabaret & Fabienne Picard, 2014. "New Insights into Innovation: The Business Model Approach and Chesbrough's Seminal Contribution to Open Innovation," Journal of Innovation Economics, De Boeck Université, vol. 0(3), pages 79-99.
    8. Saravanan Periyasami & Aravin Prince Periyasamy, 2022. "Metaverse as Future Promising Platform Business Model: Case Study on Fashion Value Chain," Businesses, MDPI, vol. 2(4), pages 1-21, November.
    9. Saravanan Periyasami & Aravin Prince Periyasamy, 2022. "Metaverse as Future Promising Platform Business Model: Case Study on Fashion Value Chain," Businesses, MDPI, vol. 2(4), pages 1-19, November.
    10. Johannes Giehl & Hayri Göcke & Benjamin Grosse & Johannes Kochems & Joachim Müller-Kirchenbauer, 2020. "Survey and Classification of Business Models for the Energy Transformation," Energies, MDPI, vol. 13(11), pages 1-17, June.
    11. Run Wang & Abdella Kosa Chebo, 2021. "The Dynamics of Business Model Innovation for Technology Entrepreneurship: A Systematic Review and Future Avenue," SAGE Open, , vol. 11(3), pages 21582440211, July.
    12. Chaurey, Akanksha & Krithika, P.R. & Palit, Debajit & Rakesh, Smita & Sovacool, Benjamin K., 2012. "New partnerships and business models for facilitating energy access," Energy Policy, Elsevier, vol. 47(S1), pages 48-55.
    13. Gabriel, Cle-Anne & Kirkwood, Jodyanne, 2016. "Business models for model businesses: Lessons from renewable energy entrepreneurs in developing countries," Energy Policy, Elsevier, vol. 95(C), pages 336-349.
    14. Mahendra Singh & Jiao Jiao & Marian Klobasa & Rainer Frietsch, 2022. "Servitization of Energy Sector: Emerging Service Business Models and Startup’s Participation," Energies, MDPI, vol. 15(7), pages 1-20, April.
    15. Lazar Gitelman & Mikhail Kozhevnikov & Olga Ryzhuk, 2019. "Advance Management Education for Power-Engineering and Industry of the Future," Sustainability, MDPI, vol. 11(21), pages 1-23, October.
    16. Soto, Esteban A. & Bosman, Lisa B. & Wollega, Ebisa & Leon-Salas, Walter D., 2021. "Peer-to-peer energy trading: A review of the literature," Applied Energy, Elsevier, vol. 283(C).
    17. Asma Khatoon & Piyush Verma & Jo Southernwood & Beth Massey & Peter Corcoran, 2019. "Blockchain in Energy Efficiency: Potential Applications and Benefits," Energies, MDPI, vol. 12(17), pages 1-14, August.
    18. Fernando Martins & Pedro Moura & Aníbal T. de Almeida, 2022. "The Role of Electrification in the Decarbonization of the Energy Sector in Portugal," Energies, MDPI, vol. 15(5), pages 1-35, February.
    19. Kirli, Desen & Couraud, Benoit & Robu, Valentin & Salgado-Bravo, Marcelo & Norbu, Sonam & Andoni, Merlinda & Antonopoulos, Ioannis & Negrete-Pincetic, Matias & Flynn, David & Kiprakis, Aristides, 2022. "Smart contracts in energy systems: A systematic review of fundamental approaches and implementations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jason Kobina Arku & Yunfei Shao & Shadrach Twumasi Ankrah, 2024. "Building a Hierarchical Enablers Framework for Service Business Model Innovation for Sustainable Performance: Evidence from Ghana’s Electricity Sector," Sustainability, MDPI, vol. 16(8), pages 1-23, April.
    2. Chavid Leewiraphan & Nipon Ketjoy & Prapita Thanarak, 2023. "Business Perspectives of Distributed System Operators for Solar Rooftop-as-a-Service," Energies, MDPI, vol. 17(1), pages 1-15, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohammad (Behdad) Jamshidi & Arash Dehghaniyan Serej & Alireza Jamshidi & Omid Moztarzadeh, 2023. "The Meta-Metaverse: Ideation and Future Directions," Future Internet, MDPI, vol. 15(8), pages 1-31, July.
    2. Zbysław Dobrowolski & Łukasz Sułkowski, 2021. "Business Model Canvas and Energy Enterprises," Energies, MDPI, vol. 14(21), pages 1-10, November.
    3. Cezar-Petre Simion & Cătălin-Alexandru Verdeș & Alexandra-Andreea Mironescu & Florin-Gabriel Anghel, 2023. "Digitalization in Energy Production, Distribution, and Consumption: A Systematic Literature Review," Energies, MDPI, vol. 16(4), pages 1-30, February.
    4. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    5. Zhong, Ziqi & Zhao, Elena Yifei, 2024. "Collaborative driving mode of sustainable marketing and supply chain management supported by metaverse technology," LSE Research Online Documents on Economics 121160, London School of Economics and Political Science, LSE Library.
    6. Avri Eitan & Gillad Rosen & Lior Herman & Itay Fishhendler, 2020. "Renewable Energy Entrepreneurs: A Conceptual Framework," Energies, MDPI, vol. 13(10), pages 1-23, May.
    7. Park, Hyejune & Lim, Rachel Esther, 2023. "Fashion and the metaverse: Clarifying the domain and establishing a research agenda," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    8. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    9. Andrea A. Eras-Almeida & Miguel Fernández & Julio Eisman & José G. Martín & Estefanía Caamaño & Miguel A. Egido-Aguilera, 2019. "Lessons Learned from Rural Electrification Experiences with Third Generation Solar Home Systems in Latin America: Case Studies in Peru, Mexico, and Bolivia," Sustainability, MDPI, vol. 11(24), pages 1-24, December.
    10. Jinlu Shen & Xiangyu Zhou & Wei Wu & Liang Wang & Zhenying Chen, 2023. "Worldwide Overview and Country Differences in Metaverse Research: A Bibliometric Analysis," Sustainability, MDPI, vol. 15(4), pages 1-25, February.
    11. Patruti Petra & Zbuchea Alexandra & Pînzaru Florina, 2023. "Fashion Joining Online Gaming and the Metaverse," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 17(1), pages 1065-1074, July.
    12. Sunhilde Cuc, 2023. "Unlocking the Potential of Blockchain Technology in the Textile and Fashion Industry," FinTech, MDPI, vol. 2(2), pages 1-16, May.
    13. Mingfeng Tang & Grace Sheila Walsh & Cuiwen Li & Angathevar Baskaran, 2021. "Exploring technology business incubators and their business incubation models: case studies from China," The Journal of Technology Transfer, Springer, vol. 46(1), pages 90-116, February.
    14. Jonathan H. Reed, 2022. "Operational and strategic change during temporary turbulence: evidence from the COVID-19 pandemic," Operations Management Research, Springer, vol. 15(1), pages 589-608, June.
    15. Agnieszka Kuś & Dorota Grego-Planer, 2021. "A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector," Energies, MDPI, vol. 14(10), pages 1-17, May.
    16. Linlin Zheng & Yashi Dong & Jineng Chen & Yuyi Li & Wenzhuo Li & Miaolian Su, 2022. "Impact of Crisis on Sustainable Business Model Innovation—The Role of Technology Innovation," Sustainability, MDPI, vol. 14(18), pages 1-28, September.
    17. Sena, Vania & Nocker, Manuela, 2021. "AI and Business Models: The Good, The Bad and The Ugly," Foundations and Trends(R) in Technology, Information and Operations Management, now publishers, vol. 14(4), pages 324-397, May.
    18. Łukasz Jarosław Kozar & Robert Matusiak & Marta Paduszyńska & Adam Sulich, 2022. "Green Jobs in the EU Renewable Energy Sector: Quantile Regression Approach," Energies, MDPI, vol. 15(18), pages 1-21, September.
    19. Matteo Vaccargiu & Andrea Pinna & Roberto Tonelli & Luisanna Cocco, 2023. "Blockchain in the Energy Sector for SDG Achievement," Sustainability, MDPI, vol. 15(20), pages 1-23, October.
    20. Chang, Yuan-Chieh & Chen, Min-Nan, 2016. "Service regime and innovation clusters: An empirical study from service firms in Taiwan," Research Policy, Elsevier, vol. 45(9), pages 1845-1857.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:4:p:3604-:d:1069835. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.