The document provides a market analysis and business plan for a company called Enerbyte to expand from a business-to-business (B2B) model to a business-to-consumer (B2C) model focused on residential energy efficiency services. It first introduces the traditional energy retail market and new players like prosumers. Then, it summarizes Enerbyte's current product and markets. Next, it analyzes competitors in the space, finding most are startups offering B2B solutions to utilities. Finally, it proposes a strategic B2C business plan for Enerbyte focused on prosumers in markets with high smart meter deployment and data access.
Capgemini ses - smart meter valuation model (gr)Gord Reynolds
This document discusses the value of implementing smart meters for utility companies. It notes that smart meters can help utilities minimize costs while maintaining quality, promote demand response programs, and meet EU policy goals around energy, emissions and renewables. However, determining who pays for the investment is challenging given the different costs and benefits to various stakeholders. The document advocates for developing a detailed business case to help stakeholders understand the costs and benefits and maximize value. It describes Capgemini's smart meter valuation model which can help utilities understand strategic context, technical requirements, quantify costs and benefits, and present the case to decision makers.
EURELECTRIC Views on Demand-Side Participationdavidtrebolle
In our vision of demand-side participation, smart grids will provide the infrastructure that enables decentralised producers, customers/‘prosumers’, suppliers and service providers to meet on an open market place, while giving grid operators more advanced tools to manage their grids.
This document provides an overview of big data opportunities in the energy sector. It analyzes use cases and clusters them into three scenarios: operational efficiency, customer loyalty, and new business models. For each scenario, the document derives user needs and requirements for European energy sector stakeholders handling big data. It finds that digitization is creating massive amounts of infrastructure, supply, and demand side data in terms of volume, velocity, and variety. This data holds potential for improving operations, engaging customers, and developing new services across emerging "arenas" as industry boundaries become blurred and new players enter the energy value chain. The document concludes by discussing these findings and outlining further work to define a big data roadmap for infrastructure-focused sectors in Europe
The document provides an overview and market forecasts for the power and energy measurement industry from 2012 to 2017. It finds that the market is expected to grow from 25.3 million units in 2012 to 108.4 million units in 2017, driven by trends such as zero net energy and data center management. Applications like distributed power systems, metering, home automation, industrial automation, and building automation are analyzed and forecasts are provided for unit and revenue growth by application, wattage, and power supply over the period.
Utilities today face a host of
significant challenges. Among them
are environmental regulations;
fuel price uncertainty; and fresh
capital needs for plant upgrades,
baseload generation investments,
and transmission investments.
One of the largest disruptors,
however, may be the erosion of
the utility business model itself.
Deployment of smarter commerce concepts in B2B electronics environmentsThorsten Schroeer
This presentation wa held at 2012's Smarter Commerce Summit from IBM in Madrid, Spain. It was a joint effort with IBM clients's SMA Solar Technology AG providing an example of the topic raised in the first half of the presentation.
Smart revenue mgt. makes utilities smarter interview feb 2015Iraklis Pilatos
The utilities industry is one of the fastest growing M2M/IOT verticals, bearing high expectations for optimized services, reduced costs, and customer satisfaction. This article outlines how smart pricing and advanced customer management - empowered by the predictions and trends brought by purpose-built analytics - can effectively address the utility market challenges ahead.
Capgemini ses - smart meter valuation model (gr)Gord Reynolds
This document discusses the value of implementing smart meters for utility companies. It notes that smart meters can help utilities minimize costs while maintaining quality, promote demand response programs, and meet EU policy goals around energy, emissions and renewables. However, determining who pays for the investment is challenging given the different costs and benefits to various stakeholders. The document advocates for developing a detailed business case to help stakeholders understand the costs and benefits and maximize value. It describes Capgemini's smart meter valuation model which can help utilities understand strategic context, technical requirements, quantify costs and benefits, and present the case to decision makers.
EURELECTRIC Views on Demand-Side Participationdavidtrebolle
In our vision of demand-side participation, smart grids will provide the infrastructure that enables decentralised producers, customers/‘prosumers’, suppliers and service providers to meet on an open market place, while giving grid operators more advanced tools to manage their grids.
This document provides an overview of big data opportunities in the energy sector. It analyzes use cases and clusters them into three scenarios: operational efficiency, customer loyalty, and new business models. For each scenario, the document derives user needs and requirements for European energy sector stakeholders handling big data. It finds that digitization is creating massive amounts of infrastructure, supply, and demand side data in terms of volume, velocity, and variety. This data holds potential for improving operations, engaging customers, and developing new services across emerging "arenas" as industry boundaries become blurred and new players enter the energy value chain. The document concludes by discussing these findings and outlining further work to define a big data roadmap for infrastructure-focused sectors in Europe
The document provides an overview and market forecasts for the power and energy measurement industry from 2012 to 2017. It finds that the market is expected to grow from 25.3 million units in 2012 to 108.4 million units in 2017, driven by trends such as zero net energy and data center management. Applications like distributed power systems, metering, home automation, industrial automation, and building automation are analyzed and forecasts are provided for unit and revenue growth by application, wattage, and power supply over the period.
Utilities today face a host of
significant challenges. Among them
are environmental regulations;
fuel price uncertainty; and fresh
capital needs for plant upgrades,
baseload generation investments,
and transmission investments.
One of the largest disruptors,
however, may be the erosion of
the utility business model itself.
Deployment of smarter commerce concepts in B2B electronics environmentsThorsten Schroeer
This presentation wa held at 2012's Smarter Commerce Summit from IBM in Madrid, Spain. It was a joint effort with IBM clients's SMA Solar Technology AG providing an example of the topic raised in the first half of the presentation.
Smart revenue mgt. makes utilities smarter interview feb 2015Iraklis Pilatos
The utilities industry is one of the fastest growing M2M/IOT verticals, bearing high expectations for optimized services, reduced costs, and customer satisfaction. This article outlines how smart pricing and advanced customer management - empowered by the predictions and trends brought by purpose-built analytics - can effectively address the utility market challenges ahead.
Evolving Distribution Grid article in Electric Perspectives magazine Jan-Feb 2015 edition. Article discusses emerging business opportunities for a utility Distribution Services Provider.
The utility landscape is dynamic. Some pundits claim that traditional utility regulation is becoming obsolete. Others are calling for a complete overhaul of utility ratemaking as we know it; distributed energy resources, technology advancements and societal trends are changing the way utilities function. In such turbulent times, how can utilities manage their financials through rate structures? How can utilities bridge the span between the rate and regulatory frameworks of yesterday and tomorrow? One way to do so is to revisit the design of rate offerings available to all utility customers and to residential customers in particular.
A national perspective on using rates to control power system costs (recommen...bobprocter
This document provides an overview of using time-differentiated electricity rates to control power system costs from a national perspective. It discusses how electricity pricing has resulted in consumption patterns that do not match production and delivery cost patterns, leading to increasing costs. Dynamic pricing is presented as a way to better align prices with underlying costs. The document covers definitions of dynamic pricing, related rate design issues, potential impacts on different customer groups, enabling technology needs, and transition challenges. It argues dynamic pricing could significantly reduce peak consumption and lower future electricity costs if designed and implemented properly while accounting for different stakeholder impacts.
Demand response (DR) resources can provide various services to wholesale electricity markets including energy, capacity, and ancillary services depending on the market rules. DR is seen as an important tool for reliable grid operations and preventing market power issues. Federal regulations and funding aim to improve the role of DR by requiring comparable treatment of DR and generation in markets and supporting smart grid demonstration projects. Individual ISO/RTO markets define different products DR can provide and have requirements for metering and communications to enable participation.
Strawman - Electric networks in Great Britain today are facing unprecedented challenge from Climate, Carbon and Convergence issues. Some thoughts and considerations.
Comments welcome
Utilities must embrace a fresh approach to managing peak demand and system security through smart metering. This includes motivating consumers to conserve energy and shift usage away from peak times, justifying smart meter investments through broader benefits, and increasing market transparency. Most utility executives favor innovative smart metering programs to meet priorities while realizing additional benefits. Utilities must leverage smart meter investments to support demand response, grid planning, reliability, and new services.
This document discusses power system deregulation. It begins with an introduction that defines electric deregulation as changing rules and regulations that allow for competition among electricity suppliers. The objectives of deregulation are then outlined, including providing reliable supply at affordable prices. Key concepts like open access and the roles of generation companies, transmission companies, and distribution companies in the deregulated system are explained. The benefits of deregulation such as reduced prices and improved efficiency are also summarized. Organization models for restructuring the power utility are then described, followed by an explanation of how spot prices are calculated in a deregulated market.
Our article that is published in Metering International issue 3, september 2011. The article is about smart meters and new business model in the utilities sector.
IRJET- Demand Response Optimization using Genetic Algorithm and Particle Swar...IRJET Journal
This document summarizes research on using genetic algorithms and particle swarm optimization to optimize demand response. It discusses how increasing population growth has increased energy demand, challenging utilities to balance supply and demand. Demand response aims to reduce peak loads by encouraging consumers to reduce electricity use during peak periods. Smart meters provide consumers information on their usage to help reduce loads. The document reviews literature on using particle swarm optimization and genetic algorithms to optimize dividing consumer loads into elastic and inelastic parts to better control total load and reduce costs. It finds genetic algorithms provide better results than particle swarm optimization for this application.
This document discusses solar feed-in tariffs and renewable portfolio standards in Germany and California. It explains that feed-in tariffs set a fixed price that solar producers are paid for electricity, while renewable portfolio standards set renewable energy production quotas and let market prices be determined. Germany pioneered feed-in tariffs in 1991 and California established a renewable portfolio standard in 2002, requiring 20% renewable energy by 2017. Both policies have effectively increased solar power adoption.
Bidding strategies in deregulated power marketGautham Reddy
This document provides a 3-page summary of a report on bidding strategies in deregulated power markets. It includes an introduction describing electricity markets and deregulation. It then covers market structure under deregulation and operation of power systems. The remainder of the document outlines the report's contents which include an analysis of various bidding strategies and algorithms, case studies, and a literature review citing 48 relevant sources.
CIS Transformation: Unlocking the Value of Utilities' Customer Information Sy...Cognizant
The customer information system (CIS) is a vital part of the meter-to-cash value chain for electric companies and other industries that provide critical commodities like water and natural gas. Yet the complex nature of CIS initiatives has left many utilities saddled with failed or underperforming CIS systems. To overcome these roadblocks, utilities must craft an approach that mitigates the risks and challenges inherent in CIS projects, delivers an exceptional customer experience, and fuels growth to support true business transformation.
Training Module on Electricity Market Regulation - SESSION 1 Regulation gen...Leonardo ENERGY
This session explains the main tasks of regulation and addresses three main questions: what is regulated, where is it regulated, and how is it regulated.
In addition, we explain how the communication between regulators and regulated companies is organised, and how the regulatory performance is measured.
* General tasks of regulators: Price, Quality, Market functioning
* Areas of regulation
* Scope of regulation
* Methods of regulation
* Institutional questions
* Consultation and communication
* Regulatory performance : External performance, Internal Performance
Transactive Energy article in Metering International magazine Fall 2013. Provides practical explanation of transactive energy in an evolutionary context.
The document discusses the restructuring of power systems from monopolistic to deregulated markets. It explains that restructuring separates generation, transmission, distribution and supply functions. This creates new business opportunities and lower costs for consumers. Various restructuring models are presented including poolco, bilateral contracts and hybrid models. The poolco model uses a centralized market to set prices while bilateral contracts allow direct negotiations. The hybrid model combines features of the first two. An independent system operator maintains grid operations.
The document discusses opportunities for energy businesses from the rollout of smart meters in the UK over the next seven years. It outlines how smart meters allow for more personalized tariffs like dynamic time-of-use tariffs tied to alerts. This enables demand response benefits. Home automation integrating with smart meters could remotely control devices and optimize energy use. New payment options are possible like pre-pay without infrastructure costs. Settlement may need to transition to half-hourly data from load profiles as consumption becomes less predictable with dynamic tariffs and automation. Overall smart meters open opportunities for differentiation, reducing costs, and improving system flexibility if businesses pursue innovative tariff designs and customer focused services.
Ea Smart Metering Ii Scope Document (Summary)Nigel Tebbutt
Smart meters are the next generation of electricity and gas meters and are being installed and connected to always-on Mobile Broadband via an Energy Supplier MVNO.
Meter Readings and energy consumption statistics are displayed both on an in-home display panel and using mobile telephones, PDA’s, the home PC or mobile laptop via the Energy Suppliers Internet Portal – linked to consumption monitoring and energy management software.
Smart meters will bring about the end of estimated meter readings and bills - and provide customers and energy suppliers with accurate information about the amount of electricity and gas being consumed.
Smart meters will empower customers to make choices on how much energy they use. Suppliers will install two-way communication systems using MVNO Platforms that display accurate real-time information on energy use both in the home and business, available to both to the consumer and to the energy supplier.
Energy Management Services for the Connected HomeEricsson
With the advent of distributed generation, the Internet of Things (IoT) and the connected home, the energy management service market is ready to take off.
Evolving Distribution Grid article in Electric Perspectives magazine Jan-Feb 2015 edition. Article discusses emerging business opportunities for a utility Distribution Services Provider.
The utility landscape is dynamic. Some pundits claim that traditional utility regulation is becoming obsolete. Others are calling for a complete overhaul of utility ratemaking as we know it; distributed energy resources, technology advancements and societal trends are changing the way utilities function. In such turbulent times, how can utilities manage their financials through rate structures? How can utilities bridge the span between the rate and regulatory frameworks of yesterday and tomorrow? One way to do so is to revisit the design of rate offerings available to all utility customers and to residential customers in particular.
A national perspective on using rates to control power system costs (recommen...bobprocter
This document provides an overview of using time-differentiated electricity rates to control power system costs from a national perspective. It discusses how electricity pricing has resulted in consumption patterns that do not match production and delivery cost patterns, leading to increasing costs. Dynamic pricing is presented as a way to better align prices with underlying costs. The document covers definitions of dynamic pricing, related rate design issues, potential impacts on different customer groups, enabling technology needs, and transition challenges. It argues dynamic pricing could significantly reduce peak consumption and lower future electricity costs if designed and implemented properly while accounting for different stakeholder impacts.
Demand response (DR) resources can provide various services to wholesale electricity markets including energy, capacity, and ancillary services depending on the market rules. DR is seen as an important tool for reliable grid operations and preventing market power issues. Federal regulations and funding aim to improve the role of DR by requiring comparable treatment of DR and generation in markets and supporting smart grid demonstration projects. Individual ISO/RTO markets define different products DR can provide and have requirements for metering and communications to enable participation.
Strawman - Electric networks in Great Britain today are facing unprecedented challenge from Climate, Carbon and Convergence issues. Some thoughts and considerations.
Comments welcome
Utilities must embrace a fresh approach to managing peak demand and system security through smart metering. This includes motivating consumers to conserve energy and shift usage away from peak times, justifying smart meter investments through broader benefits, and increasing market transparency. Most utility executives favor innovative smart metering programs to meet priorities while realizing additional benefits. Utilities must leverage smart meter investments to support demand response, grid planning, reliability, and new services.
This document discusses power system deregulation. It begins with an introduction that defines electric deregulation as changing rules and regulations that allow for competition among electricity suppliers. The objectives of deregulation are then outlined, including providing reliable supply at affordable prices. Key concepts like open access and the roles of generation companies, transmission companies, and distribution companies in the deregulated system are explained. The benefits of deregulation such as reduced prices and improved efficiency are also summarized. Organization models for restructuring the power utility are then described, followed by an explanation of how spot prices are calculated in a deregulated market.
Our article that is published in Metering International issue 3, september 2011. The article is about smart meters and new business model in the utilities sector.
IRJET- Demand Response Optimization using Genetic Algorithm and Particle Swar...IRJET Journal
This document summarizes research on using genetic algorithms and particle swarm optimization to optimize demand response. It discusses how increasing population growth has increased energy demand, challenging utilities to balance supply and demand. Demand response aims to reduce peak loads by encouraging consumers to reduce electricity use during peak periods. Smart meters provide consumers information on their usage to help reduce loads. The document reviews literature on using particle swarm optimization and genetic algorithms to optimize dividing consumer loads into elastic and inelastic parts to better control total load and reduce costs. It finds genetic algorithms provide better results than particle swarm optimization for this application.
This document discusses solar feed-in tariffs and renewable portfolio standards in Germany and California. It explains that feed-in tariffs set a fixed price that solar producers are paid for electricity, while renewable portfolio standards set renewable energy production quotas and let market prices be determined. Germany pioneered feed-in tariffs in 1991 and California established a renewable portfolio standard in 2002, requiring 20% renewable energy by 2017. Both policies have effectively increased solar power adoption.
Bidding strategies in deregulated power marketGautham Reddy
This document provides a 3-page summary of a report on bidding strategies in deregulated power markets. It includes an introduction describing electricity markets and deregulation. It then covers market structure under deregulation and operation of power systems. The remainder of the document outlines the report's contents which include an analysis of various bidding strategies and algorithms, case studies, and a literature review citing 48 relevant sources.
CIS Transformation: Unlocking the Value of Utilities' Customer Information Sy...Cognizant
The customer information system (CIS) is a vital part of the meter-to-cash value chain for electric companies and other industries that provide critical commodities like water and natural gas. Yet the complex nature of CIS initiatives has left many utilities saddled with failed or underperforming CIS systems. To overcome these roadblocks, utilities must craft an approach that mitigates the risks and challenges inherent in CIS projects, delivers an exceptional customer experience, and fuels growth to support true business transformation.
Training Module on Electricity Market Regulation - SESSION 1 Regulation gen...Leonardo ENERGY
This session explains the main tasks of regulation and addresses three main questions: what is regulated, where is it regulated, and how is it regulated.
In addition, we explain how the communication between regulators and regulated companies is organised, and how the regulatory performance is measured.
* General tasks of regulators: Price, Quality, Market functioning
* Areas of regulation
* Scope of regulation
* Methods of regulation
* Institutional questions
* Consultation and communication
* Regulatory performance : External performance, Internal Performance
Transactive Energy article in Metering International magazine Fall 2013. Provides practical explanation of transactive energy in an evolutionary context.
The document discusses the restructuring of power systems from monopolistic to deregulated markets. It explains that restructuring separates generation, transmission, distribution and supply functions. This creates new business opportunities and lower costs for consumers. Various restructuring models are presented including poolco, bilateral contracts and hybrid models. The poolco model uses a centralized market to set prices while bilateral contracts allow direct negotiations. The hybrid model combines features of the first two. An independent system operator maintains grid operations.
The document discusses opportunities for energy businesses from the rollout of smart meters in the UK over the next seven years. It outlines how smart meters allow for more personalized tariffs like dynamic time-of-use tariffs tied to alerts. This enables demand response benefits. Home automation integrating with smart meters could remotely control devices and optimize energy use. New payment options are possible like pre-pay without infrastructure costs. Settlement may need to transition to half-hourly data from load profiles as consumption becomes less predictable with dynamic tariffs and automation. Overall smart meters open opportunities for differentiation, reducing costs, and improving system flexibility if businesses pursue innovative tariff designs and customer focused services.
Ea Smart Metering Ii Scope Document (Summary)Nigel Tebbutt
Smart meters are the next generation of electricity and gas meters and are being installed and connected to always-on Mobile Broadband via an Energy Supplier MVNO.
Meter Readings and energy consumption statistics are displayed both on an in-home display panel and using mobile telephones, PDA’s, the home PC or mobile laptop via the Energy Suppliers Internet Portal – linked to consumption monitoring and energy management software.
Smart meters will bring about the end of estimated meter readings and bills - and provide customers and energy suppliers with accurate information about the amount of electricity and gas being consumed.
Smart meters will empower customers to make choices on how much energy they use. Suppliers will install two-way communication systems using MVNO Platforms that display accurate real-time information on energy use both in the home and business, available to both to the consumer and to the energy supplier.
Energy Management Services for the Connected HomeEricsson
With the advent of distributed generation, the Internet of Things (IoT) and the connected home, the energy management service market is ready to take off.
This document contains a proposal for a solar energy group to develop and launch an energy storage device. It includes an assessment of various energy storage technologies and an analysis of energy consumption trends in the UK. It then provides an 8-stage business plan to bring a new energy storage product to market. The proposal recommends using flow battery technology due to its low cost, long lifespan, and suitability for residential applications. The business plan outlines the product development process and involvement of different company departments to successfully launch the new product.
IRJET- An Energy Conservation Scheme based on Tariff ModerationIRJET Journal
This document discusses an energy conservation scheme based on tariff modification for domestic users. It proposes a new tariff rate structure that provides incentives for low consumption and penalties for high consumption. This aims to motivate consumers to reduce energy usage without causing losses for electric utilities. The existing structure provides 100 free units, which does not encourage conservation and causes losses. The proposed system calculates bills based on consumed units and compares to averages to determine incentives or penalties. The goal is to reduce residential energy usage through this modified tariff approach.
Shared Economy & Open Data in #EnergyEfficiency MarketsUmesh Bhutoria
Paper orginally written for presentation at the AEEE Conclave. It failed to make the cut for final round, we thought we would still let people review it and engage!
Paper talks about our path-breaking work on helping open up data for greater good and value creation
1. The document discusses how smart grids can help address issues around energy security, affordability, and reducing emissions through outcomes like managing demand, improving efficiency, reducing costs and price volatility.
2. It defines smart meters and smart grids, noting that smart meters are the first step and will provide consumers information to influence behavior, with the long term goal of enabling automation and demand management.
3. The impact on consumers in the near term could be choice in tariffs and time-of-use pricing and energy services, but much depends on engaging consumers to change behaviors and trusting utilities to control aspects of energy use.
Big Data has made it easier to gain loyal and happy customers in the utilities industry. It improves the ability of companies to quickly identify underlying issues and nip complaints in the bud.
Through big data analytics, utilities can improve customer experience, address changing demands, solve experience-related issues, manage grids more efficiently and gain full control of their resources. Read this paper to find out more.
This document summarizes a research report on advancing energy management through smart metering systems from an operational perspective. The report discusses the limitations of traditional electricity meters and how smart meters can help overcome issues by providing consumers with more information on their energy usage. It outlines the objectives of the study, which include analyzing currently deployed smart metering systems, suggesting improvements, and studying consumer energy usage behaviors. The report also reviews the evolution of electricity meters and discusses the costs and benefits of smart metering systems for consumers and electricity suppliers.
Facilitating cross-sectoral exchange of energy dataSaidh KESSACI
Energy transition is attracting many new players putting increased pressure on the grid players to access and draw insights from data that measures energy consumption and needs. Considering all the possible data-sharing architectures is important to make the system more attractive for investments and more secure for management.
In this Energy Flash we give an overview of the package and discuss the challenges ahead and the many controversies surrounding the Clean Energy Package.
Pay-As-You-Go Energy Meter with GSM ModuleIRJET Journal
This document provides an overview of pay-as-you-go energy metering systems with GSM modules. It discusses the benefits of prepaid energy meters for managing energy consumption and billing. Prepaid meters allow customers to pay for electricity in advance and automatically disconnect power when credit is exhausted, encouraging conservation. The document examines the technical requirements for implementing these systems and their potential social and economic impacts, such as improving affordability for low-income households. It aims to provide a comprehensive understanding of prepaid energy metering and its role in sustainable energy management.
Horizon Scan: ICT and the future of utilitiesEricsson
A new research report from Ericsson and Imperial College London examines the effects of ICT in reshaping the future of energy utilities markets.
ICT will play a fundamental role in the disruption of energy utility structures by enabling innovative methods of connection and coordination among community-based renewable energy installations.
Ubiquitous, affordable digital technologies create numerous new entry points into highly centralized and regulated energy markets, allowing both smaller entrants and consumers to seize power from established utility providers.
ICT systems, centered until now on supplying energy from just a handful of large producers, will soon need to balance supply from thousands of networked devices.
Integration of data across complex supply chains will create new opportunities for traceability, improved insurance models and reduced risk of accidents and environmental disasters.
These are some of the key transformational forces identified in the latest report in a series of horizon scans outlining the potential impacts of ICT on various industries. Based on in-depth research in collaboration with Imperial College London, the report identifies some of the major operating boundaries of current versus emerging utility industry structures and the role that digital technologies may play in crossing these thresholds.
This document provides an overview of smart grid deployment in the United States, including smart meter infrastructure and benefits. It discusses the status of smart meter deployments across the country, with 46 million smart meters installed so far and a goal of 65 million by 2015. Nearly 75% of smart meters have been installed in 10 states that have driven adoption through policies, incentives and experience. Smart meters provide benefits like remote meter reading, outage detection, and voltage management. The document also defines smart meters and meter systems, outlining the evolution from automated meter reading to advanced metering infrastructure. Key benefits for utilities include reduced costs from limited truck rolls and improved outage management. Metering operations play an important role in smart grid projects.
This document summarizes an article that proposes an automatic demand response controller with a load shifting algorithm implemented using MATLAB software. The controller monitors generation capacity and customer demand to optimally schedule loads to reduce peak demand and stabilize the load curve. A mathematical model is presented that shifts loads in priority order from the lowest to highest load if total demand exceeds generation capacity. The model was tested on an 8 bus system in MATLAB and successfully stabilized the load curve to better manage power demand according to supply conditions.
This document discusses modernizing the electric grid to leverage distributed energy resources (DERs) like rooftop solar and energy storage. It finds that DERs can provide over $1.4 billion in annual net societal benefits for California by 2020. However, the current utility regulatory model and grid planning processes are not designed for high DER adoption and instead incentivize utility infrastructure buildout. The document calls for changes to these structures to properly account for DER benefits and ensure least-cost grid solutions that maximize customer and societal value.
North America Utility Industry 2009 Top 10 PredictionsRick Nicholson
The document provides 10 predictions for the North American utility industry in 2009. It predicts that energy efficiency will become the top priority for utilities due to demand growth and policy mandates. Renewable energy growth will slow in 2009 but rebound in 2010 due to policy support. Utilities will emphasize distributed energy to support the grid. Intelligent grid technology spending will reach $70 billion by 2013. Web portals will be the fastest way for consumers to manage energy. Energy trading investment will decrease. Generators will focus on managing carbon exposure. Water scarcity and technology will impact the water market. Gas utilities will be hit harder than electric utilities by the recession. Overall US utility IT spending growth will decrease to 1.9% in 2009.
- European utilities are undergoing significant changes due to a shifting energy market and political environment, with traditional centralized generation models being replaced.
- To create new value, utilities must pursue growth opportunities downstream in areas like energy services, efficiency solutions, distributed generation, and new verticals like electric mobility and smart homes.
- Successful growth will require utilities to get the basics of their existing business right, carefully select opportunities where they can compete against established players, and reorganize internally to build focused new business units.
Managing the Energy Information Grid - Digital Strategies for UtilitiesIndigo Advisory Group
In this piece we highlight the digital imperative for the industry and how utilities can optimize their digital strategies, build business cases and incorporate emerging technologies.
The Most Inspiring Entrepreneurs to Follow in 2024.pdfthesiliconleaders
In a world where the potential of youth innovation remains vastly untouched, there emerges a guiding light in the form of Norm Goldstein, the Founder and CEO of EduNetwork Partners. His dedication to this cause has earned him recognition as a Congressional Leadership Award recipient.
Discover innovative uses of Revit in urban planning and design, enhancing city landscapes with advanced architectural solutions. Understand how architectural firms are using Revit to transform how processes and outcomes within urban planning and design fields look. They are supplementing work and putting in value through speed and imagination that the architects and planners are placing into composing progressive urban areas that are not only colorful but also pragmatic.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
Profiles of Iconic Fashion Personalities.pdfTTop Threads
The fashion industry is dynamic and ever-changing, continuously sculpted by trailblazing visionaries who challenge norms and redefine beauty. This document delves into the profiles of some of the most iconic fashion personalities whose impact has left a lasting impression on the industry. From timeless designers to modern-day influencers, each individual has uniquely woven their thread into the rich fabric of fashion history, contributing to its ongoing evolution.
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...BBPMedia1
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
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Market Analysis and Business Plan for Residential Energy Efficiency Services
1. Market Analysis and Business Plan for Residential
Energy Efficiency Services
Abstract – the aim of this study is to develop a market
analysis for the energy efficiency residential sector and to
propose a business plan for the company Enerbyte, Smart
Energy Solutions to move from a B2B to a B2C business
model. The work is divided in four main blocks: First, an
introduction to the energy retail market with some
important influencers such as smart meters and
prosumers is presented. Second, an overview of the
company is provided in order to present the actual market
of Enerbyte and the product delivered. Then, a competitor
analysis has been developed with the objective to analyse
the products offered by the companies serving residential
consumers with energy efficiency solutions. Additionally,
a comparison between B2B and B2C companies is
presented in order to identify the main differences
between them. Finally, a business plan has been proposed
based on a B2C model. A strategic decision has been
made to focus the business model on a niche market
composed by prosumers and the most appropriate
geographical markets have been identified considering
several parameters such as number of prosumers and
smart meters data access.
Keywords – Energy Efficiency, Residential consumers,
Prosumers, Smart meters, B2B, B2C
I. INTRODUCTION
1. Traditional energy retail market
Figure 1 shows a simple scheme of the whole process to
transport electricity from the power plants to residential homes.
Electricity is produced in power plants managed by
Generators. After the electricity is produced, it is immediately
transported. At this stage, all the electricity coming from
FIGURE 1. TRANSPORT OF ELECTRICITY [1]
different energy sources is merged in the same transmission
lines. To decrease losses during the transportation, electricity
is converted to high voltage. The management of high voltage
transmission lines is done by the Transmission System
Operator (TSO). Finally, to distribute the electricity among end
consumers, the voltage is decreased and electricity is
distributed through the distribution lines. This part of the
system is managed by the Distribution System Operator
(DSO). However, the electricity is not delivered to consumers
directly. The figure that sells electricity to end consumers is the
Retailer which has previously bought the electricity from the
pool market.
Furthermore, there are two more important figures involved in
the energy value chain. On the one hand, there is the System
Operator which is an independent stakeholder with the
objective to assure an efficient management of the system. His
main duty is to balance the production with the demand. On
the other hand, Regulators should also be considered because
of its influence. This is the figure that sets the regulatory
framework. Figure 2 illustrates the position that each figure
occupies in the energy value chain.
In general, the same scheme can be applied to all electricity
retail markets across Europe. However, each country has his
singularities and there exists important differences in the
Albert Graells Vilella
agraellsvilella@gmail.com
Instituto Superior Tecnico, Lisboa, Portugal
July 2016
2. FIGURE 2. THE ENERGY VALUE CHAIN AND THE EMERGENCE OF
PROSUMERS
legislation of each market that affect significantly the
possibilities of emerging business around it.
Such differences could be the degree of liberalization of the
market, the competitiveness within each stakeholder, the role
of the market operator or the bargaining power of regulators
[2]. Depending on these parameters, the pain suffered by each
figure is different and the businesses emerged from it are
viable or not.
For example, on the one hand, a potential business could be to
provide a solution to DSO’s (or even to the System Operator)
in order to allow them managing the demand more efficiently.
However, to make this business viable, DSO’s should have
some motivations to manage the grid more efficiently. These
motivations could be caused by several facts: DSO’s needs to
increase the capacity of the grid or regulators are incentivising
grid efficiency with economic schemes. If none of these
problems exist, a business addressed to DSO’s would not be
viable. On the other hand, the will of retailers to invest in
customer engagement solutions is directly linked to the fear
they are facing for losing customers. This fact depends a lot on
the competitiveness of the retail market.
2. Smart meters
A smart meter is an electronic device that measures energy
consumption (electricity, gas or water) in intervals of hours or
minutes. The data collected by smart meters is transmitted to
utilities for billing purposes. However, the possibilities offered
by the evolution of smart meters are wider and they can be
applied for many purposes [3].
Smart meters can be used for the benefit of utilities, but also
for consumers. On the one hand, utilities and system operators
(DSO’s and TSO’s) can use the information to manage the grid
system more effectively. The main example of such
applications is the use of smart meters in demand response
programs. On the other hand, consumers can also take
advantage of smart meters information.
FIGURE 3. TARGET ON SMART METERS DEPLOYMENT BY 2020 [4]
For example, consumers can allow third parties specialized in
energy efficiency to access their consumption data in order to
receive recommendations on how to save energy.
To start a business within the energy efficiency residential
market, it is very important to know the level of smart meters
deployment in each country and the exact process to access to
the data generated.
The percentage of smart meters rollout is illustrated in Figure 3
together with the absolute number of smart meters to be
installed.
Besides this, the difficulties to access smart meters data may
become the main problem for companies willing to explode that
information in some countries. In general, the directives are on
the road to facilitate access of third parties in order to enhance
functionalities for the benefit of consumers [5]. However, the
legislation across countries is very different. Figure 4 identifies
the possibilities of access to smart meter data by third parties.
The information presented in Figure 3 and Figure 4 give an
insight of which European markets are more interested to start
a business based on the data generated by smart meters. If
the biggest markets are compared with the ones having data
access, one can obtain the most suitable ones.
Finally, after selecting some candidates, it is also important to
consider the process to access that data because it varies in
each country. For example, a significant difference results from
the location where third parties have to extract the data from.
This can be managed through the utility web portal or through
a central data hub.
FIGURE 4. THIRD PARTY DATA ACCESS [4]
3. FIGURE 5. DIFFERENCE ON WHERE TO EXTRACT SMART METERS DATA
FROM [4]
3. New players: Prosumers
The electricity market has suffered several changes in the
recent years and it is still in a constant evolution. A clear
innovation within the energy market is defined by the
emergence of a new figure: the prosumers. The identification
of such community is done because they are players operating
both in the demand side and in the production side.
Figure 2 illustrates what is the position of prosumers into the
energy value chain when they act as producers and
consumers. However, it is important to distinguish two different
types of prosumers: prosumers connected to the grid and
prosumers off-grid. The second type of prosumers is not
connected to the grid and thus, they cannot inject electricity.
Consequently, if electricity cannot be injected into the grid,
batteries are needed to support a remote system: store the
excess of energy produced when the demand is low and
consume energy when the production is low. This type of
prosumers is more common in countries with low electrification
rates, where distributed energy systems are the only mean to
access electricity. Nevertheless, this paper focuses on
prosumers connected to the grid (Figure 2) because it is the
most common in developed countries.
The growth of the community of prosumers is an opportunity
for emerging business around energy management.
Prosumers represent a new figure to address energy
management tools with singular characteristics and special
requirements. As a result, one of the many features analysed
in the competitor analysis will be the presence of services
specifically designed for prosumers.
Prosumers are not difficult to identify, but capturing them is a
big challenge. Several prosumers characteristics have been
identified in [7]:
TABLE 1. NUMBER OF PROSUMERS ESTIMATION IN 2013
(DEV. BY THE AUTHORS)
PV
cumulative
capacity
2013 [6]
Residential
segment
2013 [6]
PV
Residential
capacity
2013
Minimum
number of
prosumers
Austria 613 40% 245.2 24520
Belgium 2983 60% 1789.8 178980
Bulgaria 1020 2% 20.4 2040
Czech R. 2175 62% 1348.5 134850
Denmark 548 98% 537.04 53704
France 4673 22% 1028.06 102806
Germany 35715 14% 5000.1 500010
Greece 2579 14% 361.06 36106
Hungary 22 36% 7.92 792
Italy 17928 16% 2868.48 286848
NL 665 70% 465.5 46550
Poland 7 12% 0.84 84
Portugal 278 32% 88.96 8896
Romania 1151 2% 23.02 2302
Slovakia 524 4% 20.96 2096
Slovenia 212 1% 2.12 212
Spain 5340 2% 106.8 10680
Sweden 40 40% 16 1600
UK 3375 22% 742.5 74250
Prosumers are early adopters of technologies.
The salary of prosumers is 15% higher.
Prosumers use solutions to keep in touch with family and
friends such as social networking.
Prosumers are interested in entertainment.
Prosumers want to be connected and serviced always
and everywhere.
Despite being technology lovers, they appreciate
simplicity in solutions.
Prosumers are mainly smartphone users, but they also
use frequently tablets and laptops.
Furthermore, the number of prosumers has been estimated by
using the PV capacity in 2013 from [6]. The capacity of grid
connected PV residential systems vary from 2 to 10 kWp.
Then, one can divide the PV power installed in residential
sector by 10 kWp in order to obtain the estimation of the
minimum number of prosumers in each European market.
Results are presented in Table 1.
4. II. COMPANY PRESENTATION
This study has been developed with the collaboration of the
company Enerbyte, Smart Energy Solutions SL. Consequently,
this block of the project is intended to introduce the solution
offered by Enerbyte and the markets where the product is
currently being applied.
Description of the product1.
Enerbyte presents his product as a Virtual Energy Advisor and
compares it with a GPS for energy efficiency. The software
developed is designed to collect hourly consumption data from
smart meters and deliver personalized energy savings tips.
Moreover, the input data is also enriched by the information
that users want to introduce about their home.
The business model is based on delivering the service to
residential customers through utilities or smart cities.
The service informs the residential consumer about his energy
efficiency level compared to his neighbours. Moreover, it uses
gamification strategies such as gratification badges or
efficiency rankings in order to engage the users into the
platform. Hourly electricity prices are also included in the
platform and recommendations about the cheapest time
periods for turning on appliances are provided.
An important characteristic of the solution proposed by
Enerbyte is the incorporation of a community within the
platform. This tool allows users to interact and share questions
and answers. Moreover, it can be used to promote the
community achievement of social trends (for example,
reducing energy poverty in the community).
Current market presence2.
Enerbyte is involved in several projects mainly in the country of
Spain, but also in other European countries (see Figure 6).
Most of its customers are smart cities; however, it is also
collaborating with one utility.
The market presence is dominated mainly by the Spanish
market despite the non-favourable regulation of its energy
market for starting businesses around energy services for the
residential sector.
FIGURE 6. CURRENT PROJECTS OF ENERBYTE IN EUROPE
As a result, the vision of the company is at European level
because other markets are considered more suitable for this
type of solutions. Consequently, the company has been
selected by the EU to replicate his experience with smart cities
in Spain to other European cities: Brussels (Belgium),
Amsterdam (Netherlands) and Bergen (Norway).
Enerbyte has started operating in 2014 with a pilot project of
100 households in the city of Rubí and it is expected to achieve
the value of 1 million of users by 2017.
III. ECOSYSTEM
The aim of this section is to analyse in deep most of the
companies offering energy management services to residential
users. The objective of such analysis is to understand how the
energy efficiency solutions are performing in the residential
market, and the main differences between Business to
Business (B2B) and Business to Customer (B2C) solutions.
The competitor analysis is based on 40 companies from
around 14 countries across the world and it is developed
around the characteristics of their product and the type of
business. The research has been based on the information
available in their official websites, in LinkedIn and in some
papers from scientific journals.
1. Market findings
The majority of companies offering energy management
services for residential consumers were founded during the
last 10 years. As a result, it can be concluded that most of
competitors within this business are start-ups working to
achieve a dominant position in the market.
Figure 8 gives a more detailed insight on the number of
companies founded during the last 10 years.
This fact is explained by the emergence of Big Data in the
same years and the wide range of applications.
FIGURE 7. PRODUCT PRESENTATION OF ENERBYTE
5. FIGURE 8. NUMBER OF COMPANIES FOUNDED SINCE YEAR 2000
(DEV. BY THE AUTHORS)
FIGURE 9. NUMBER OF EMPLOYEES (DEV. BY THE AUTHORS)
To confirm these conclusions, it has been plotted the size of
each company in terms of number of employees (see Figure
9). As it was expected, most of the companies are in the
category of 11-50 employees. Moreover, the second position is
occupied by companies with 1-10 employees. This fact
demonstrates that the companies in the market are mostly
start-ups or SME’s (Small and Medium Enterprises) because
the market is new and fresh. Furthermore, the fact that the
dominant category is 11-50 employees, together with the early
year of foundation shows that most of the companies have
been successful and thus, the energy management market
continues to offer high potential opportunities.
2. Characteristics of B2B companies
Three B2B approaches have been identified: 100% utility,
smart cities and communities, and other industry.
The utility approach is the most shared in B2B companies
and the most successful one until the moment. However,
some companies are approaching new markets such as
smart cities or community buildings due to the high
competition.
Most of the companies are “Free of Hardware”. The
incorporation of hardware is seen as a drawback for this
type of solutions.
The concept of “Energy Bridge” is introduced. The main
characteristic is that it allows delivering disaggregation
information.
The main features from the platforms of those B2B
companies “Free of Hardware” have been compared and
analysed (see Table 2).
Comparison tools are widely implemented in the market.
However, the quality of the comparison may become a
crucial aspect.
There are different types of community concepts. On the
one hand, some companies allow sharing information
through social networks. On the other hand, some
companies allow interaction between users within the
scope of friendly competitions organized by them. There is
a high degree of potential improvement in this feature
(Enerbyte is an example).
Gamification and rewards are widely used. This is a very
effective way to interact with users in a friendly
environment.
The presence of a marketplace is usually linked to virtual
reward points. It represents an adequate place to
exchange such rewards.
The marketplace can provide a new revenue stream for
interested companies.
Prosumer services are not yet a priority in B2B solutions.
This fact demonstrates that, in general, utilities have not
yet integrated such possibilities into their business model.
However, such service can have a strong influence in the
future as the number of prosumers is expected to grow.
Including gas and heating services depend on the energy
sources provided by the utility.
The degree of implementation of gas smart meters is not
as extend as electricity smart meters.
TABLE 2. FEATURES OF "FREE OF HARDWARE" AND "100% UTILITY
FACED" COMPANIES (DEV. BY THE AUTHORS)
0
1
2
3
4
2000 2002 2004 2006 2008 2010 2012 2014 2016
0
5
10
15
20
25
6. Being able to deliver disaggregation information requires
investing in R&D tasks. This service is not widely
implemented in the market. However, it may represent a
competitive advantage in the future.
3. Characteristics of B2C companies
Some B2C companies have diversified their channels
towards B2B channels in order to reach residential
consumers. Three channels have been identified: utilities,
smart cities and communities.
The principal finding is that the majority of B2C companies
incorporated hardware into their solutions. This fact is due
to difficulties in having access to smart meters data.
B2C companies use submetering devices connected to
the home electric box in order to monitor electricity
consumption. Other typical hardware devices are: IHD’s
(In Home Displays), smart thermostats and smart plugs.
Some solutions gather many diversified areas which
define the concept of smart home: security, heating and
lighting.
B2C companies that do not incorporate hardware in their
solutions are not a reference nowadays. Nevertheless, not
including hardware depends a lot on the difficulties to
access smart meters data. Having this ability will provide a
very advantageous position in front of competitors, mostly
in terms of price.
Comparison tools are not widely implemented in B2C
solutions. As a result, enjoying of a strong ability regarding
this feature is a good strategy to be distinguished in the
B2C market.
Community tools are not widely implemented in B2C
solutions. Communities in this market are more difficult to
be built because they do not enjoy of a high amount of
initial users (like in B2B solutions).
Gamification and Rewards are not widely implemented in
B2C solutions. This fact may be due to the usual link of
virtual rewards with demand response programs which are
only interested by utilities.
Nevertheless, including such services may be seen by
B2C companies as a strategy to keep the users active
within the platform.
A marketplace can be a suitable new revenue stream for
B2C solutions.
The link between marketplace and reward points is not
observed in this case.
TABLE 3. MAIN FEATURES INCLUDED IN B2C EEM SOLUTIONS (DEV.
BY THE AUTHORS)
The incorporation of a marketplace together with
gamification and reward points are services not widely
implemented in B2C companies.
Prosumer services are generally implemented in B2C
solutions. This is the main difference with B2B companies.
Gathering several energy consumptions in one platform is
very attractive for residential consumers.
Offer such diversity of services is a very effective strategy
to attract new users.
Disaggregation is not still a reality. However, the increase
of savings provided by this ability may represent a
common service in the future.
IV. BUSINESS PLAN
1. Strategic position
The two visions proposed for succeeding with a B2C model in
the residential sector are:
Vision 1: increase the number of users in the broad market
by rethinking the features of the product in order to be
more attractive or consider new channels.
Vision 2: segment the market and focus on smaller, but
more profitable groups.
On the one hand vision 1 could be associated with the
Differentiation corner. Include unique features in the platform
or improve the quality of existing ones in order to attract more
users by differentiating from competitors. In parallel, innovate
on the type of channels to meet residential consumers. Several
approaches such as create brand through advertising, develop
innovative capabilities or invest in R&D are suggested in [8] to
achieve this position.
On the other hand, vision 2 would be located in the Niche
corner. A niche strategy is based on generating rents from
7. FIGURE 10. GENERIC COMPETITIVE POSITIONS [8]
higher consumer willingness to pay by targeting a small
premium segment of the market. In this case, the approaches
proposed in [8] are to gain knowledge and expertise in specific
fields, and to build brand loyalty.
Considering the previous aspects from each strategy option,
the move to a niche market (vision 2) has been selected due to
several reasons:
Investment is considered higher in the differentiation
corner because the marketing tasks become very
significant. The biggest problem when focusing the broad
residential market in a B2C model is the difficulty to get
known across residential consumers and consequently, it
is needed to put most of the efforts in marketing and
advertising campaigns.
The low state of maturity is a drawback to develop new
features, because companies would never know how the
market would receive their innovations.
Selecting a specific group in the broad market provides
more control and knowledge on their requirements. Thus,
features are more effectively designed.
Moving to a niche market is seen as more disruptive move
within the residential energy efficiency market. It is crucial
to select the most appropriate group or groups.
As a result, it has been decided to focus the product
specifically on the market composed by prosumers for three
main reasons:
Prosumers are more technology users than conventional
consumers [7]. Residential energy efficiency solutions are
completely technology focus and therefore, prosumers are
more attracted by these solutions.
Their salaries are 15% higher and their willingness to pay
is also higher [7].
The prosumer market has increased rapidly in the last
years and it is expected to follow the same track in the
future [6].
2. Market value
From Table 1 the total minimum number of prosumers in
Europe at the end of 2013 was about 1.467.326 residential
solar systems. This value is calculated considering a common
size for residential systems of 10 kWp. However, to obtain a
range comprising the number of prosumers in Europe the
maximum number of prosumers is estimated with a size of 2
kWp.
The maximum number of prosumers in 2013 was 7.336.630
residential solar systems. Moreover, considering the estimated
rate of growth forecast for PV capacity in Europe, one can
estimate the increase of number of prosumers. It is considered
that the percentage of residential PV in the complete PV
capacity will not be increased neither decreased in the
following years. The residential segment has developed more
rapidly than the other segments in some countries such as
Belgium, Denmark, UK or Greece. However, at European level
the residential segment had only increased 1 point of
percentage between 2012 and 2013 [6].
Then, the same rate of growth for residential sector and the
whole PV capacity has been used to forecast the number of
prosumers in the coming years.
To estimate the value of the market in monetary terms, it is
needed to quantify the money associated with the value
delivered to the customer.
The value that can be delivered to prosumers varies from one
country to another. For example, in those countries where
prosumers are allowed to inject and sell the excess of energy
into the grid, they can benefit of energy management tools in
order to choose whether to inject the excess into the grid or
into a personal battery pack. In these cases, the potential
economic savings would be higher than in those countries
where prosumers cannot sell the excess of energy into the
grid.
FIGURE 11. ECONOMIC VALUE OF THE PROSUMER MARKET UNTIL
2018 (DEV. BY THE AUTHORS)
8. However, it has been concluded that, in general, prosumers
can receive more benefits than conventional consumers of
energy efficiency management services. The main argument to
support the previous affirmation is that all the services that can
be delivered to conventional consumers can also benefit
prosumers. Consequently, to estimate the value of the market
in monetary terms, it has been considered that each prosumer
would assume a monthly minimum cost of 1.25 €. This is the
price presented in [9] that utilities are paying to MeterGenius.
Considering this price, the graph in Figure 11 is built in order to
show the total value of the market and its expected growth until
2018.
Furthermore, it is important to highlight that the Average
Revenue per User (ARPU) and the Customer Acquisition Cost
(CAC) are very difficult to quantify in such innovative market.
3. Selection of the geographical market
Next step is to analyse the most suitable countries for
delivering energy management services taking into account the
previous decisions. Several considerations can be applied to
select the best country to enter. On the one hand, the
availability of smart meters and the process to access their
consumption data is critical. On the other hand, the number of
prosumers is something to consider when selecting the best
market to enter. Moreover, the competitiveness of the retail
market and the legislation for solar energy should also be
considered because both parameters influence on the
willingness of society to become prosumers.
To quantify the best markets, a value matrix has been built with
the following parameters and delivering marks from 0 to 3 to
each field. In addition, each parameter has been pondered
depending on the importance given to it. The adjudicated
values are presented in Table 4. The results have been scaled
to the range 0-10 and are presented in .
The countries of Sweden, Finland and Spain can be discarded
nowadays mainly because their low number of prosumers.
Therefore, the remaining countries (UK, Netherlands,
Germany, France, Denmark, Italy and Belgium) should be
considered because their punctuation is equal or higher than 7.
In other words, any of these markets would be appropriate to
enter with an energy management solution for prosumers.
Furthermore, there are only three countries with an excellent
punctuation (higher than 9): UK, Netherlands and Denmark.
4. Product description
The general philosophy followed here is based on the idea of
providing an energy efficiency management solution as a
social entertainment tool.
Offering this type of services from a more technological point of
view is considered as the main drawback for scaling up the
business and reaching a high number of users.
The first decision to be made is regarding the penetration of
hardware. In this case, it has been concluded that the best
strategy is to not include any type of hardware in the
solution proposed.
Comparison tools should be included in the solution because
their presence in B2B solutions demonstrates its importance
and moreover, it could be seen as a distinction with
competitors in the B2C market.
Nevertheless, the quality or level of detail from such
comparison tools has been identified as the main potential
competitive advantage with similar products.
It is considered very important to include a Community
because of its big potential. This feature is not widely
implemented in B2B neither in B2C companies and therefore, it
may provide a valuable competitive advantage.
Enerbyte is already offering a community that enables
communication between users as one of the features in his
energy efficiency solution. Consequently, it is important to keep
and continuously improve this feature as it provides the main
competitive advantage of the company.
Gamification is considered key for providing entertainment
and keeps the user active. It is important to focus gamification
from the social point of view. A clear example of it is the
organization of friendly competitions to reach community
energy savings.
TABLE 4. MATRIX VALUE TO SELECT THE BEST GEOGRAPHICAL
MARKET (DEV. BY THE AUTHORS)
FIGURE 12. GRAPHIC RESULTS OF THE MATRIX VALUE (DEV. BY THE
AUTHORS)
9. The presence of a Marketplace is a great opportunity to
enable the exchange of virtual points with products. This
provides a motivation for users to gain points through
gamification activities and it is expected that the link between
gamification and marketplace may become the success of both
features. Moreover, it provides a new revenue stream for the
company getting a commission for each purchase.
Two main types of services have been distinguished to be
included in the marketplace. On the one hand, energy related
products and entertainment products have to be included. On
the other hand, other services informing and comparing the
available pricelists of energy supplies can be offered.
Disaggregation could be offered as a premium service
because of the added value that can be provided from it.
Besides this, it has been detected that, at present, the majority
of disaggregation solutions require the installation of some
hardware in order to collect more accurate (frequent) data from
smart meters.
Some features will be specifically for prosumers. The main one
is the monitoring of electricity production which is enabled by
collecting the data from smart meters. This is already a
common feature in the majority of residential PV systems.
However, the available solutions only provide monitoring and,
in this case, the significant values will be delivered from it.
Furthermore, another crucial feature specific for prosumers has
been identified that enables to deliver many services out of it:
forecast of energy production. The estimation of the electricity
produced by solar panels can be obtained by applying weather
conditions, physical models or neural networks [10]. This
service will visualize energy consumption, production and
forecast at the same time. However, what is innovative from
this solution will be the artificial intelligence provided from the
previous data in order to change the energy management rules
in advance and decrease even more energy consumption.
With this information, many services specific for prosumers can
be delivered. For example, for those prosumers having
batteries they can receive information to manage efficiently the
charging and discharging cycles of the batteries. They can
receive the best times whether to inject excess electricity into
the grid or into their batteries. The same is applied for those
prosumers having electric cars with electrical chargers at
home. In this case, they can know the best time to charge their
vehicle looking for lower prices in the energy market.
5. Business Model Canvas
Finally, a Business Model Canvas is built considering all the
information presented previously.
Customer Segments: the solution is aiming to serve
residential consumers that can consume and produce
electricity at their home. This group is a segmentation of the
broad residential market and they are commonly referred as
prosumers.
The customer is concerned about being energy efficient in
order to save energy and to save money. Moreover, he/she
wants to share achievements and knowledge with similar
users.
Value Propositions: the solution offers artificial intelligence
services from monitoring the home electricity consumption and
production. Examples of such services are: best times of
consumption, best times of battery charging, best times of grid
injection, comparison with similar users, channels to
communicate, and interact with the community of users.
Moreover, the platform includes a marketplace where users
can access to entertainment and energy related products.
Channels: the best channels to reach prosumers have been
identified:
All types of online advertising are effective because
prosumers are high technology users. This channel will
represent the main Customer Acquisition Cost (CAC).
Some utilities are starting to offer solar packages for
electricity self-generation. Recommending our solution to
these new prosumers is an effective channel and well-
receive by utilities. Therefore, this channel will not
increase the CAC.
PV systems suppliers.
Enerbyte is already working with smart cities in a B2B
model. However, smart cities or public institutions willing to
promote energy efficiency can become a good channel to
reach prosumers. This channel will not increase the CAC
because smart cities will be equally interested.
Pear to Pear (P2P) recommendation. It is expected that
contented users will recommend the product to new
prosumers and they will be virtually rewarded for such
favourable activity.
Customer Relationships: the relationship with the customer
segment should be completely digitalized, because it is the
most usual way to communicate. However, it is important to
remember that despite they are technology lovers they also
appreciated simplicity in their solutions.
10. Therefore, the communication with the customer can be done
through email or through the community provided by the
platform.
Revenue Streams: the revenue streams proposed are divided
in two:
Monthly payments for joining the platform and having
access to energy efficiency services. Furthermore,
premium versions with an extra fee will also be considered
for some features. The features proposed for the premium
version are those associated with big economic savings:
disaggregation services and electricity production
forecasting.
Commissions from the marketplace: purchase of energy
related or entertainment products and a commission for
new energy supply contracts done through the
marketplace.
Key Activities: the software development is one of the main
activities. It is vital that the technology works always well and is
presented in a simple way. The software development should
be covered by an expert developer team. Furthermore, it is
important that the team is supported by another group
specialized on behavioural science. This complement will
assure to keep the platform simple for the user and will design
the features to be included in the platform.
In parallel, considerable efforts should be dedicated to
commercial tasks to meet new users. In order to get known
among the prosumers segment, the company should be have
presence in congresses, conferences, blogs, websites, all
related with distributed energy producers.
Key Resources: on the one hand, the developer team is
considered a key resource in order to build the adequate
product. On the other hand, as it has been stated previously,
the access to smart meters data is crucial to be able to deliver
energy efficiency services without incorporating hardware. As a
result, smart meters data is also considered the key resource.
Key Partners: key partners will vary across different countries.
The most important ones are related to the crucial challenge
previously mentioned: the access to smart meters data.
Depending on the legislation of each country, the data
generated by smart meters is stored differently and managed
by different public or private companies. All the figures involved
in the process to access smart meters data should be identified
for each country and therefore, they are considered key
partners for delivering the service.
Moreover, official prosumers groups (institutions, magazines,
congresses, etc.) are considered key partners because it is
crucial to be present in all the activities organized by them in
order to get known among the prosumers community.
Cost Structure: the cost structure is composed by the salaries
required to build the necessary team and the expenses
associated with the channels used (online advertising and B2B
channels). In some cases, a fee will need to be paid to utilities
and public institutions for having access to their customers.
REFERENCES
[1] Australian Government, “The energy supply chain,”
[Online]. Available: http://eex.gov.au/energy-
management/energy-procurement/energy-pricing/the-
energy-supply-chain/.
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Association, 14 April 2016.
[3] Edison Electric Institute, “Smart Meters and Smart Meter
Systems: A Metering Industry Perspective,” 2011.
[4] A. Beviz, “Comparative analysis of the impact of EU smart
meter data regulation on,” KTH (Department of Energy
Technology), 2016.
[5] European Comission, “Delivering a New Deal for Energy
Consumers,” Brussels, 2015.
[6] G. Masson, S. Orlandi and M. Rekinger, “Global Market
Outlook. For Photovoltaics 2014-2018,” EPIA, 2014.
[7] W. Gerhardt, “Prosumers: A New Growth Opportunity,”
Cisco IBSG, 2008.
[8] M. Lenox and J. Harris, Writers, Foundations of Business
Strategy. [Performance]. University of Virginia, 2015.
[9] N. Strother, P. Leuschner and R. Elberg, “Residential
Customer Engagement,” Navigant Research, 2016.
[10] Z. Zhen and e. al., “SVM based cloud classification model
using total sky images for PV power forecasting,”
Innovative Smart Grid Technologies Conference (ISGT),
2015.