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Introduction to business models in decentralised energy systems

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Academic year: 2021

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Presenter

Austin D’Souza Background

Centre for expertise – Energy (Kennis centrum energy), Entrance Chair: Dr.Wim van Gemert

PhD Researcher

Area of Research: Developing methods for designing and evaluating viable business models in decentralised energy systems.

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Introduction

I. Business models in decentralised energy systems

II. Viability of business models (monetary, social, environmental) III. Grunneger power case;

- Energy cooperative in Groningen,

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I. Business Models in decentralised

energy system

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What is a business model?

 “A good business model answers Peter Drucker’s age-old questions:

Who is the customer? And what does the customer value? It also

answers the fundamental questions every manager must ask: How do we make money in this business? What is the underlying economic logic that explains how we can deliver value to customers at an appropriate cost?” (Magretta, 2002, p. 4)

 “A business model describes the rationale of how an organisation

creates, delivers, and captures value” (Osterwalder & Pigneur , 2010, p. 14)

 “A blueprint collaborative effort of multiple companies to offer a joint

proposition to their consumers.” (Haaker, Faber, & Bouwman , 2006, p. 646)

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Why business models matter?

 Business models are mechanism through which innovations are brought to the market (Chesbrough, Vanhaverbeke, & West, 2006)

 Viable business models can make important contributions to energy transition (Beltramello, Haie-Fayle, & Pilat, 2013)

– By successfully exploiting sustainable technologies

– Increase the pace of transition by introducing products and services that customers will adapt

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Where do business models fit in an

organisation?

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Business Models

Designing business models using ontologies

Language Language

Business models Business models

Express

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Business Models – Focal actor perspective

Example of a business model ontology: Business Model Canvas (osterwalder,2010)

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Business model – Ecosystem perspective

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Business model design process in

complex energy systems

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II. Business model design framework for

viability

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Business model design framework for

viability

Business rules example:

- Subsidies

- Distribution system operator cannot produce or retail electricity

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 The business idea

- “Setup and operate community owned solar farms on unused parcels of real-estate in and around the city of Groningen”

III. Applying the framework to design a

business model; GP

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The Service/product perspective

The service/product perspective

Grunneger power Grunneger power Cooperation Energy retailer Energy retailer Interested in solar farms Solar farm Set up a nd o pera te Sell electricity R et a il e le ct ri ci ty

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The focal actor perspective

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The business ecosystem perspective

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The business ecosystem perspective

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Conclusion

New products and service are an integral part of viable business models

Complex energy systems require multiple-perspectives

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