A flexible business model for the ETP Wijster: final report

Research output: Book/ReportReportProfessional

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Abstract

The traditional energy industry is transitioning from a centralised fossil fuel based industry to a decentralised renewable energy industry for several reasons including climate change, policy, and changing customer needs. Furthermore, renewable sources, such as wind and solar, are intermittent and unpredictable. This has implications for the business models of energy producers, such as increased mismatch between demand and supply, increased price volatility, shift in drivers of value creation. Due to the low marginal cost of production and the intermittent nature of renewables, the price volatility on the electricity markets, in particular the imbalance market, are expected to increase. However, there is potential for market parties operating in the electricity sector to profit from this development by providing flexibility to balance electricity supply and demand. Therefore, new business models are needed that can harness and exploit flexibility in a viable manner. In these business models, flexibility becomes the key driver of value creation.
Original languageEnglish
Place of PublicationGroningen
PublisherHanzehogeschool Groningen
Number of pages90
Publication statusPublished - Jun 2015

Keywords

  • energy
  • industrial heat
  • business models
  • flexibility

Cite this

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title = "A flexible business model for the ETP Wijster: final report",
abstract = "The traditional energy industry is transitioning from a centralised fossil fuel based industry to a decentralised renewable energy industry for several reasons including climate change, policy, and changing customer needs. Furthermore, renewable sources, such as wind and solar, are intermittent and unpredictable. This has implications for the business models of energy producers, such as increased mismatch between demand and supply, increased price volatility, shift in drivers of value creation. Due to the low marginal cost of production and the intermittent nature of renewables, the price volatility on the electricity markets, in particular the imbalance market, are expected to increase. However, there is potential for market parties operating in the electricity sector to profit from this development by providing flexibility to balance electricity supply and demand. Therefore, new business models are needed that can harness and exploit flexibility in a viable manner. In these business models, flexibility becomes the key driver of value creation.",
keywords = "energy, industrial heat, business models, flexibility, energie",
author = "Kathelijne Bouw and Austin D'Souza and {van Someren}, Christian",
year = "2015",
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A flexible business model for the ETP Wijster : final report. / Bouw, Kathelijne; D'Souza, Austin; van Someren, Christian.

Groningen : Hanzehogeschool Groningen, 2015. 90 p.

Research output: Book/ReportReportProfessional

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N2 - The traditional energy industry is transitioning from a centralised fossil fuel based industry to a decentralised renewable energy industry for several reasons including climate change, policy, and changing customer needs. Furthermore, renewable sources, such as wind and solar, are intermittent and unpredictable. This has implications for the business models of energy producers, such as increased mismatch between demand and supply, increased price volatility, shift in drivers of value creation. Due to the low marginal cost of production and the intermittent nature of renewables, the price volatility on the electricity markets, in particular the imbalance market, are expected to increase. However, there is potential for market parties operating in the electricity sector to profit from this development by providing flexibility to balance electricity supply and demand. Therefore, new business models are needed that can harness and exploit flexibility in a viable manner. In these business models, flexibility becomes the key driver of value creation.

AB - The traditional energy industry is transitioning from a centralised fossil fuel based industry to a decentralised renewable energy industry for several reasons including climate change, policy, and changing customer needs. Furthermore, renewable sources, such as wind and solar, are intermittent and unpredictable. This has implications for the business models of energy producers, such as increased mismatch between demand and supply, increased price volatility, shift in drivers of value creation. Due to the low marginal cost of production and the intermittent nature of renewables, the price volatility on the electricity markets, in particular the imbalance market, are expected to increase. However, there is potential for market parties operating in the electricity sector to profit from this development by providing flexibility to balance electricity supply and demand. Therefore, new business models are needed that can harness and exploit flexibility in a viable manner. In these business models, flexibility becomes the key driver of value creation.

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KW - industrial heat

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