Table 3 Business model elements (source: own representation)
From: The renewable energy debate: how Austrian electric utilities are changing their business models
| Â | Utility-side business model for renewable energies | Customer-side business model for renewable energies |
|---|---|---|
Product, value proposition | Bulk generation of green electricity fed into the grid | Shift from traditional utility to energy service provider, which extends the value proposition |
Reliance on kWh sales | ||
Does not rely on kWh sales | ||
Support customers in planning, construction, operation, and financing of PV plants | ||
Additional value for environmentally sensitive customers | ||
Technology for electricity generation changes | New ways for creating, delivering, and capturing values are needed | |
Customer interface | No relationships with end customers | Improved customer communication |
Business to business relationships | Business to customer relationships | |
Environmentally friendly electricity production as a marketing aid | Utility as a partner for customers | |
Use of renewable energy improves corporate image | ||
Use of renewable energy improves corporate image | ||
New customer segment (eco-conscious customers) | ||
New customer segment (eco-conscious customers) | ||
Infrastructure management | Key resources: large-scale renewable energy plants | Key resources: small-scale decentralized PV plants |
Key activities: new technologies, utilities can try to cover the whole value chain or at least to expand their activities in the value chain | Key activities: manage, own, operate decentralized PV plants | |
Key partnerships: cooperation with suppliers, project developers, or other utilities | ||
Key partnerships: cooperation with suppliers, project developers, or other utilities, to share risks and costs | ||
Financial aspects | Costs: planning, construction, operation, maintenance | Costs: planning, construction, operation, maintenance |
Revenues: charging the customer for the amount of electricity delivered | Revenues: charging the customer for the planning, construction, etc., of the PV plant | |
New revenue sources: green electricity tariff, enhance activity in the value chain | New revenue sources: supplying the customer with additional green electricity, offering energy services |