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Diversifying Electricity Customer Choice: REVing Up the New York Energy Vision for Polycentric Innovation


  • Nyangon, Joseph
  • Byrne, John


Electric utility business models are changing to integrate new technologies and distributed energy resources (DER). Diversifying energy mix and customer choices are both novel and useful in understanding key drivers of this transformation, including distribution system planning and customer-service options. Practical implementation of these solutions, how- ever, shows that without proper planning, energy diversiication could come at very high social and economic costs. For example, regulators have been slow in implementing policy, regulatory, and business model constructs that promote customer choice to animate high levels of grid reliability and resiliency. Equally important is how viable existing utility business models are to navigating transformation processes, including strategic resource management, revenue model, customer interface, and value propositions. This chapter discusses our use of the Hamel business model to ofer strategic analysis of Reforming the Energy Vision (REV), which is aimed at decarbonizing New York’s energy sector and increasing customer choice and control. Speciically, we build from existing literature to argue that implementing distribution management systems (DMS) in which customer choice and DERs are prominent requires a shared or ‘polycentric,’ networked business- model innovations that build on competitive and comparative advantages of existing institutions to meet the growing demand for electricity services and utility strategic goals.

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  • Nyangon, Joseph & Byrne, John, 2018. "Diversifying Electricity Customer Choice: REVing Up the New York Energy Vision for Polycentric Innovation," MPRA Paper 91486, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:91486

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    References listed on IDEAS

    1. John Byrne & Job Taminiau & Jeongseok Seo & Joohee Lee & Soojin Shin, 2017. "Are solar cities feasible? A review of current research," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 21(3), pages 239-256, September.
    2. Joseph Nyangon & John Byrne & Job Taminiau, 2017. "An assessment of price convergence between natural gas and solar photovoltaic in the U.S. electricity market," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 6(3), May.
    3. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 529-555, June.
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    Cited by:

    1. Andreja Pucihar & Gregor Lenart & Mirjana Kljajić Borštnar & Doroteja Vidmar & Marjeta Marolt, 2019. "Drivers and Outcomes of Business Model Innovation—Micro, Small and Medium-Sized Enterprises Perspective," Sustainability, MDPI, Open Access Journal, vol. 11(2), pages 1-17, January.
    2. Jingxian Gan & Yong Qi & Chen Tian, 2019. "The Construction and Evolution of Technological Innovation Ecosystem of Chinese Firms: A Case Study of LCD Technology of CEC Panda," Sustainability, MDPI, Open Access Journal, vol. 11(22), pages 1-30, November.
    3. Erlantz Allur & Iñaki Heras-Saizarbitoria & Olivier Boiral & Francesco Testa, 2018. "Quality and Environmental Management Linkage: A Review of the Literature," Sustainability, MDPI, Open Access Journal, vol. 10(11), pages 1-15, November.
    4. Juhong Chen & Ruijun Zhang & Di Wu, 2018. "Equipment Maintenance Business Model Innovation for Sustainable Competitive Advantage in the Digitalization Context: Connotation, Types, and Measuring," Sustainability, MDPI, Open Access Journal, vol. 10(11), pages 1-20, October.

    More about this item


    reforming the energy vision; distributed energy resources; business model; polycentric innovation; utility choice management; Hamel framework;

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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