Business Models for the Smart Grid

Abstract

This chapter sheds light on the business model concept, its main components and how it can be used to analyze the impact of smart grid (SG) technology to create, deliver and capture a value for utility businesses. The business model concept is based on two theories of management: the resource‐based view and transaction cost economics. The traditional electricity value chain has within it the generation, transmission, distribution, retail and consumption guide from energy source to end use. Electricity markets possess retail and wholesale components. Advancing a new business model (BM) needs a deep comprehension of basic consumer needs, why competitors did not manage to meet those needs, as well as the technological and organizational trajectories. The chapter presents a review of different business models which have previously been proposed for the SG. Blockchain technology improves the market role of customers and producers. Blockchain addresses complex issues for the future digital energy system.