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Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation
Halmstad University, School of Business, Engineering and Science, The Rydberg Laboratory for Applied Sciences (RLAS).
2019 (English)In: Energies, ISSN 1996-1073, E-ISSN 1996-1073, Vol. 12, no 9, article id 1778Article in journal (Refereed) Published
Abstract [en]

This paper addresses the implications on the business model of district heating companies of the technology shift targeting lower temperatures in the distribution network. Lower temperatures are valuable, since heat supply to low-energy buildings with low grid losses is facilitated. In addition, low-temperature heat sources can be integrated into an efficient energy system, improving the environmental performance of the industry. This technology shift opens a window of opportunity to update the business logic in the sector, since the lower temperatures allow a diversification of the value proposed to customers and a closer, long-term customer relationship. The extent to which the business model is impacted by the shift is not known. Thus, six cases of low temperature implementation from five European countries have been identified. Interviews with the project managers of the implementations show that the six cases made limited change to the primary business model when making the technological shift. Consequently, there is an unexplored potential for updating the value proposition and the customer relationship.

Place, publisher, year, edition, pages
MDPI , 2019. Vol. 12, no 9, article id 1778
Keywords [en]
district heating, low temperature, fourth-generation technology, business model change
Identifiers
URN: urn:nbn:se:hh:diva-41457DOI: 10.3390/en12091778ISI: 000469761700194Scopus ID: 2-s2.0-85065883077OAI: oai:DiVA.org:hh-41457DiVA, id: diva2:1390215
Available from: 2020-01-31 Created: 2020-01-31 Last updated: 2020-02-03Bibliographically approved

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Lygnerud, Kristina

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