Table 1 Comparison of business model characteristics (own representation, based on Richter, 2011, who analyses the German electricity market; data is derived from 20 interviews with representatives form 18 German utilities)

Product, value proposition

Electricity remains commodity–the value proposition basically remains the same

Shift from commodity delivery to energy service provider

Additional value for the customer through more environmentally friendly production

New value propositions need to be developed

Customer interface

Relationship with customers remains largely unchanged

Better customer relationship is required to develop new value propositions

Customer segmentation allows customer base to be increased and an ‘eco’ price premium may be earned

Customer segments change

New channels are needed

Channels mainly remain the same

Chance to improve corporate image and rebuild trust

Infrastructure management

Small number of large-scale assets

Large number of small-scale assets

Experienced in large-scale infrastructure projects

No experience with development and operation of small-scale projects

Partnerships with project developers and suppliers

Partnerships with system suppliers and local installation companies

Financial aspects

Revenues through feed-in of electricity

Revenues from feed-in and/or from services, source, and level of revenues unclear

Revenue models are available

New revenue models need to be developed

Cost structures reflect utilities’ experiences with large-scale infrastructure financing

Cost structure becomes more complex due to need for many small investments instead of a few large investments

Economies of scale from large-scale projects and project portfolios

High transaction costs reduce profits