The way we produce and supply energy, also known as theenergy value chain, is undergoing a major shift these days. For utilities, what were once easily predictable, low-risk and safe investments are quicklyturning into liabilities. As one analyst recentlytold the Economist, “Never in recent history has the deployment of capital been more difficultthan it is right now within the energy industry.”
As utilities adjust to operating inuncertainty, they must face the disruption of their traditional business model and take on new roles in the energy value chain.
A new report from theENTRUSTproject has detected10个新兴企业s models for utilities, inspired by examples of finding new ways toadd value in the face of disruption and digital transformation. In each one, the way utilities operate and innovate in the new energy paradigm looks a little bit different.
Learn how each business model works in the infographic below.
Utilities: an Outdated Business Model
Apart from the competition, utilities and retailers have a great internal challenge: to stop working with an outdated business model.
The model of the traditional energy companies was divided – with the mentioned liberalization of the market – into three fundamental branches:
- production
- distribution
- and commercialisation
Energy supply and distribution are becoming more decentralisedas renewable sources become cheaper, new actors enter the value chain and end-users start becoming their own power producers.
The old actors (fossil fuel power plants, TSOs, DSOs and energy services retailers) must make way for new independent operators, energy brokers, renewable energy companies, ESCOs, and storage operators.
So what does the role of the utility look like in this transformed value chain? And how does innovation factor into each new utility business model? ENTRUST highlights technological and operational changes first and foremost, followed by new opportunities forinterconnectionandcustomer engagement.
10 Innovative Business Models for the New Energy Value Chain
To hear from a real utility on how they are dealing with disruption, check out thiswebinar in our Future-Proof Utility series:
