Conference article

Utilities’ Business Models for Renewable Energy: Evidence from Germany

Mario Richter
Centre for Sustainability Management (CSM), Leuphana University of Lüneburg, Lüneburg, Germany

Mohammad Ameri
Energy Engineering Department, Power and Water University of Technology, Tehran, Iran

Seyed Mohammad Ali Afsharzadeh
Energy Engineering Department, Power and Water University of Technology, Tehran, Iran

Ernst Kussul
CCADET, UNAM, Mexico city, Mexico

Tatiana Baidyk
CCADET, UNAM, Mexico city, Mexico

José Saniger
CCADET, UNAM, Mexico city, Mexico

Felipe Lara
CCADET, UNAM, Mexico city, Mexico

Neil Bruce
CCADET, UNAM, Mexico city, Mexico

Widén Joakim
Department of Engineering Sciences, Uppsala University, Uppsala, Sweden

Magnus Åberg
Department of Engineering Sciences, Uppsala University, Uppsala, Sweden

Dag Henning
Optensys Energianalys AB, Linköping, Sweden

S. M. Rozati
Department of Physics, University of Guilan, Iran

Z. Bargbidi
Department of Physics, University of Guilan, Iran

M. Direk
Department of Mechanical Education, Kocaeli University, Turkey

M. Hosoz
Department of Mechanical Education, Kocaeli University, Turkey

K. S. Yigit
Department of Mechanical Engineering, Kocaeli University, Turkey

M. Canakci
Department of Mechanical Education, Kocaeli University, Turkey

A. Turkcan
Department of Mechanical Education, Kocaeli University, Turkey

E. Alptekin
Department of Mechanical Education, Kocaeli University, Turkey

A. Sanli
Department of Mechanical Education, Kocaeli University, Turkey

A. F. Ozguc
Department of Mechanical Engineering, Istanbul Technical University, Turkey

Koby Attias
Ben- Gurion University, Beer-Sheva, Israel

Shaul P. Ladany
Ben- Gurion University, Beer-Sheva, Israel

Emin Acikkalp
Department of Mechanical and Manufacturing Engineering, Engineering Faculty, Bilecik University, Bilecik, Turkey

Haydadr Aras
Department of Mechanical Engineering, Engineering and Architecture Faculty, Eskisehir Osmangazi University, Eskisehir, Turkey

Mohammad Baghestani
Mechanical Engineering Faculty K.N.Toosi University of Technology, Tehran, Iran

Masoud Ziabasharhagh
Mechanical Engineering Faculty K.N.Toosi University of Technology, Tehran, Iran

Mohammad Hasan Khoshgoftar Maneshr
Mechanical Engineering Faculty K.N.Toosi University of Technology, Tehran, Iran

Ala Hasan
Aalto University, School of Engineering, Department of Energy Technology, Finland

Pascal W. Galloway
Sustainable Energy Research Group, School of Civil Engineering and the Environment, University of Southampton, UK

Luke E. Myers
Sustainable Energy Research Group, School of Civil Engineering and the Environment, University of Southampton, UK

AbuBakr S. Bahaj
Sustainable Energy Research Group, School of Civil Engineering and the Environment, University of Southampton, UK

Michael Obersteiner
Forestry Program, International Institute for Applied Systems Analysis (IIASA), Laxenburg, Austria

Florian Kraxner
Forestry Program, International Institute for Applied Systems Analysis (IIASA), Laxenburg, Austria

Kentaro Aoki
Forestry Program, International Institute for Applied Systems Analysis (IIASA), Laxenburg, Austria

Sylvain Leduc
Forestry Program, International Institute for Applied Systems Analysis (IIASA), Laxenburg, Austria

Georg Kindermann
Forestry Program, International Institute for Applied Systems Analysis (IIASA), Laxenburg, Austria

Jue Yang
Center for Global Environmental Research (CGER), National Institute for Environmental Studies (NIES), Japan

Yoshiki Yamagata
Center for Global Environmental Research (CGER), National Institute for Environmental Studies (NIES), Japan

Kwang Il Tak
Forestry Department, Kookmin University, Seoul, Republic of Korea

Fabrícia Gasparini
CEMPEQC - Organic Chemistry Department, Institute of Chemistry, São Paulo State University, Brazil

José Renato de O. Lima
CEMPEQC - Organic Chemistry Department, Institute of Chemistry, São Paulo State University, Brazil

Yussra A. Ghani
CEMPEQC - Organic Chemistry Department, Institute of Chemistry, São Paulo State University, Brazil

Rafael R. Hatanaka
CEMPEQC - Organic Chemistry Department, Institute of Chemistry, São Paulo State University, Brazil

Rodrigo Sequinel
CEMPEQC - Organic Chemistry Department, Institute of Chemistry, São Paulo State University, Brazil

Danilo L. Flumignan
CEMPEQC - Organic Chemistry Department, Institute of Chemistry, São Paulo State University, Brazil \ São Paulo Federal Institute of Education, Science and Technology – IFSP, Brazil

José Eduardo de Oliveira
CEMPEQC - Organic Chemistry Department, Institute of Chemistry, São Paulo State University, Brazil

Download articlehttp://dx.doi.org/10.3384/ecp110572385

Published in: World Renewable Energy Congress - Sweden; 8-13 May; 2011; Linköping; Sweden

Linköping Electronic Conference Proceedings 57:14, s. 2385-2392

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Published: 2011-11-03

ISBN: 978-91-7393-070-3

ISSN: 1650-3686 (print), 1650-3740 (online)

Abstract

This study on German utilities’ business models for renewable energies provides new insights into the thinking of Germany’s leading utilities about future business models. Two generic business models are derived from the literature and are subsequently analyzed based on a series of in-depth interviews. A core result is that utilities clearly favor large scale projects over small scale projects on the customer-side. This result can be explained with the return potential and renewable energy portfolio standards. Contradictory to the existing literature; German utilities do not see electricity generation on the customer-side as threat to their business model. Instead; they develop very different approaches for large scale projects. It can be concluded that utility engagement in customer-side business models will remain limited in Germany; whereas large scale projects are seen as a promising future business model. The analysis from a business model perspective also shows that both business models; for small scale as well as for large scale projects; still offer room for innovation. Hence; business model innovation can help utilities to create and capture more value in the energy transition.

Keywords

Renewable Energy; Business Model; Utility; Energy Transition

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