Until recently, the energy sector has largely resisted the platform revolution. Its rigid value chain is still based mainly on centralized generation in nuclear and coal-fired power plants, transmission through monopolized grids, and consumption by customers unwilling to switch suppliers. But the tide is turning: liberalization, digitization (e.g., smart homes), electrification (e.g., e-mobility), and decentralization (e.g., rise of prosumers) are changing the energy industry's game.
Ultimately, this development could not only turn the industry on its head, but also significantly accelerate the green transformation of the sector: Platform business models will drive adoption of green technologies by providing additional revenue streams and lowering barriers to entry for new renewable assets (e.g., rooftop PV, home storage, electric vehicles) and managing increasing complexity through flexible power generation and demand.
In their recent publication, BCCP Fellow Timm Teubner and co-author Tobias Menzel provide an initial review of the literature on this topic. They describe the upcoming transformation in the industry, present a taxonomy of platform business models in the energy sector, and describe worthwhile paths for future work. In addition, the authors lay out how platform business models are changing the conventional energy value chain.
The full article "Green energy platform economics - understanding platformization and sustainabilization in the energy sector" is published in the International Journal of Energy Sector Management.
Original source of article:https://www.bccp-berlin.de/news/news-detailview/how-platform-business-models-could-boost-the-energiewende, published on July 4th, 2022.