IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v4y2017i3p380-391.html
   My bibliography  Save this article

Business model strategies: Flexibility trade in emerging low voltage distribution networks

Author

Listed:
  • Patrick Lynch

    (Waterford Institute of Technology, Ireland)

  • Jamie Power

    (Waterford Institute of Technology, Ireland)

  • Richard Hickey

    (Waterford Institute of Technology, Ireland)

  • Thomas Messervey

    (R2M Solution Srl, Italy)

Abstract

Empowered by information and communication technologies (ICT) analytics and smart technologies, the energy model landscape is changing with flexibility at the core of a new energy market design. In particular, multi-sided platforms (MSPs) has gained prominent attention as a business model that creates value by enabling direct interactions between several distinct groups of actors who need each other in order to deliver products to their customers. However, as MSPs are less familiar within the energy market, there has been little investigation in modelling this emerging and dynamic ecosystem. Utilising the business modelling methodology of value network analysis and the key informant technique, value flows were modelled within the context of a MSP to understand the creation, delivery and capture of value in a network of interdependent relationship, its networked position and the stakeholder interactions required for delivery of local flexibility. Supported by this analysis, this paper focuses on the LV area of the smart grid, and presents the Local Flexibility Market (LFM) as a Multi-Sided Plarform. In comparison to the traditional utility model, the complexity of this recharacterization of the industry ecosystem is significant. While it presents new opportunities for incumbent energy providers to collaborate and develop new products, the proposed LFM market design will also dramatically reshape the value model of the industry.

Suggested Citation

  • Patrick Lynch & Jamie Power & Richard Hickey & Thomas Messervey, 2017. "Business model strategies: Flexibility trade in emerging low voltage distribution networks," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 4(3), pages 380-391, March.
    • Handle: RePEc:ssi:jouesi:v:4:y:2017:i:3:p:380-391
    DOI: 10.9770/jesi.2017.4.3S(12)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/15/Lynch_Business_model_strategies_Flexibility_trade_in_emerging_low_voltage_distribution_networks.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/113
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2017.4.3S(12)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peppard, Joe & Rylander, Anna, 0. "From Value Chain to Value Network:: Insights for Mobile Operators," European Management Journal, Elsevier, vol. 24(2-3), pages 128-141, April.
    2. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    3. Mia Ala-Juusela & Michael Short & Uzi Shvadron, 2014. "Tools to support sustainable entrepreneurship in energy positive neighbourhoods," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 2(2), pages 49-59, December.
    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. Ute Paukstadt & Jörg Becker, 2021. "Uncovering the business value of the internet of things in the energy domain – a review of smart energy business models," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(1), pages 51-66, March.

    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. de Reuver, Mark & Ondrus, Jan, 2017. "When technological superiority is not enough: The struggle to impose the SIM card as the NFC Secure Element for mobile payment platforms," Telecommunications Policy, Elsevier, vol. 41(4), pages 253-262.
    2. Wang, Juite & Lai, Jung-Yu & Chang, Chih-Hsin, 2016. "Modeling and analysis for mobile application services: The perspective of mobile network operators," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 146-163.
    3. Alexander Gleiss & Marco Kohlhagen & Key Pousttchi, 2021. "An apple a day – how the platform economy impacts value creation in the healthcare market," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(4), pages 849-876, December.
    4. Ke Rong & Yong Lin & Boyi Li & Thommie Burström & Lynne Butel & Jiang Yu, 2018. "Business ecosystem research agenda: more dynamic, more embedded, and more internationalized," Asian Business & Management, Palgrave Macmillan, vol. 17(3), pages 167-182, July.
    5. Claude Paraponaris, 2017. "Plateformes numériques, conception ouverte et emploi," Post-Print halshs-01614430, HAL.
    6. Estelle Malavolti, 2016. "Single Till or Dual Till at airports: a Two-Sided Market Analysis," Post-Print hal-01406372, HAL.
    7. Nagler Matthew G., 2007. "Understanding the Internet's Relevance to Media Ownership Policy: A Model of Too Many Choices," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-28, June.
    8. Martin Peitz & Sven Rady & Piers Trepper, 2017. "Experimentation in Two-Sided Markets," Journal of the European Economic Association, European Economic Association, vol. 15(1), pages 128-172.
    9. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.
    10. Chakravorti Sujit, 2003. "Theory of Credit Card Networks: A Survey of the Literature," Review of Network Economics, De Gruyter, vol. 2(2), pages 1-19, June.
    11. Lam, W., 2015. "Switching Costs in Two-sided Markets," LIDAM Discussion Papers CORE 2015024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    12. V. I. Blanutsa, 2022. "Geographic Research of the Platform Economy: Existing and Potential Approaches," Regional Research of Russia, Springer, vol. 12(2), pages 133-142, June.
    13. Andrei Hagiu & Julian Wright, 2015. "Marketplace or Reseller?," Management Science, INFORMS, vol. 61(1), pages 184-203, January.
    14. Wu, WenTing & Chen, XiaoQian & Zvarych, Roman & Huang, WeiLun, 2024. "The Stackelberg duel between Central Bank Digital Currencies and private payment titans in China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    15. Kind, Hans Jarle & Koethenbuerger, Marko & Schjelderup, Guttorm, 2008. "Efficiency enhancing taxation in two-sided markets," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1531-1539, June.
    16. Ehrenhard, Michel & Kijl, Bjorn & Nieuwenhuis, Lambert, 2014. "Market adoption barriers of multi-stakeholder technology: Smart homes for the aging population," Technological Forecasting and Social Change, Elsevier, vol. 89(C), pages 306-315.
    17. Waterson, Michael, 2023. "Platforms as arbitrageurs and facilitators of arbitrage- a simple analysis," The Warwick Economics Research Paper Series (TWERPS) 1481, University of Warwick, Department of Economics.
    18. Davide Consoli & Pier Paolo Patrucco, 2011. "Complexity and the Coordination of Technological Knowledge: The Case of Innovation Platforms," Chapters, in: Handbook on the Economic Complexity of Technological Change, chapter 8 Edward Elgar Publishing.
    19. Lapo Filistrucchi & Tobias J. Klein, 2013. "Price Competition in Two-Sided Markets with Heterogeneous Consumers and Network Effects," Working Papers 13-20, NET Institute.
    20. Buechel, Berno & Krähenmann, Philemon, 2022. "Fixed price equilibria on peer‐to‐peer platforms: Lessons from time‐based currencies," Journal of Economic Behavior & Organization, Elsevier, vol. 195(C), pages 335-358.

    More about this item

    Keywords

    smart grid; Low Voltage Grid; Flexibility Management; Local Flexibility Market; Local Flexibility Aggregator; Prosumer; Local Energy Community; Multi-Sided Business Models;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • P41 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Planning, Coordination, and Reform

    Statistics

    Access and download statistics

    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:ssi:jouesi:v:4:y:2017:i:3:p:380-391. 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: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    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.