Abstract
Traditional electric utility business models are becoming rapidly outdated. Policy changes, new energy technologies and more demanding consumers are driving the need to move away from purely operation-oriented approaches to more consumer-driven models. With these new business imperatives and a resulting need to focus on industry-level business model innovation, we explore how new models could evolve, and their benefits to consumers, utilities and other stakeholders. We also discuss the challenges ahead and the capabilities required for realizing this transformation.
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Notes
- 1.
“Consumers” is used to refer specifically to residential and small commercial customers; “customers” is a more general term including large commercial and industrial users.
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Acknowledgments
This chapter is an updated republication of the paper “Switching perspectives: Creating new business models for a changing world of energy” by Michael Valocchi, Allan Schurr and John Juliano, IBM. The copyright permission for reusing the paper has been granted by IBM.
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Valocchi, M., Juliano, J., Schurr, A. (2014). Switching Perspectives: Creating New Business Models for a Changing World of Energy. In: Mah, D., Hills, P., Li, V., Balme, R. (eds) Smart Grid Applications and Developments. Green Energy and Technology. Springer, London. https://doi.org/10.1007/978-1-4471-6281-0_9
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