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Small-scale, Big Impact – Utilities’ New Business Models for “Energiewende”

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  • Marko, Wolfgang A.

Abstract

The European electricity industry looks back on two decades of major change: Liberalization has just been mastered, but the rising diffusion of renewable energy generation, particularly small-scale distributed renewable energy generation (DREG), poses new challenges. Electricity from renewables has priority in the grid and is supported by feed-in-tariffs in many countries. Hence, big power plants must operate under partial load for long periods and therefore do not reach their full efficiency. Consequently, the classic utility business model (UBM) summarized as “invest in a plant, earn a return, and turn the meters” is seriously challenged and additional business models (BM) for DREG seem vital. This paper addresses the major challenges for utilities concerning “Energiewende” and presents five new utility BMs for small-scale DREG focusing on optimized energy solutions for the customers and suitability regarding market potential and utilities’ capabilities.

Suggested Citation

  • Marko, Wolfgang A., 2014. "Small-scale, Big Impact – Utilities’ New Business Models for “Energiewende”," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(3), pages 201-220.
    • Handle: RePEc:nms:untern:10.5771/0042-059x-2014-2-201
    DOI: 10.5771/0042-059X-2014-2-201
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