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Business Model Innovation Approach for Commercializing Smart Grid Systems
Halmstad University, School of Business, Innovation and Sustainability, Centre for Innovation, Entrepreneurship and Learning Research (CIEL).ORCID iD: 0000-0003-2407-6432
Halmstad University, School of Business, Innovation and Sustainability, Centre for Innovation, Entrepreneurship and Learning Research (CIEL).ORCID iD: 0000-0003-2111-5977
2018 (English)In: American Journal of Industrial and Business Management, ISSN 2164-5167, E-ISSN 2164-5175, Vol. 8, no 9, p. 2007-2051Article in journal (Refereed) Published
Abstract [en]

The depletion of fossil fuels, increased environmental concerns, rising cost and the demand for clean energy are causing the transformation of energy generation and distribution system, to shift towards the consumption side. Electricity generation sources and distribution systems are drifting from non-renewable to renewable, centralized to decentralized and localized, and traditional grid systems to smart grid systems. New technologies nurture the concept of transformation of energy firms, all the way from energy production to electricity consumption. Smart grid systems are one of the disruptive and emerging technologies that might influence the entire electricity system. This disruptive technology demands a new business model which can be used to commercialize the new power distribution system and thus create value for all stakeholders, from production to consumption. The Smart grid has the potential to revolutionize the electricity industry if it is commercialized successfully. It allows information and communication technology firms to contribute with their modern technology to empower their consumers to regulate the usage of electricity. To investigate the reasons for shifting from the old to the new energy system, the impact of this disruptive technology on energy providing firms, the demand for the new business model and the approach of the new business model in terms of creating and capturing values published peer-reviewed articles, and international energy agency reports have been reviewed. This paper encourages energy providing firms to redesign business models for commercializing new energy distribution system and to offer new services to the energy consumers for their future survival in the new trends of the energy market. These services include integrating with renewable energy sources, electric vehicle services, and demand response services to create more value for the consumers and in return gains more profit for each actor. The services provided through integration of renewable energy with smart grid and the electric vehicle will empower consumers involvement in the electricity system which will give them more control over electricity. CO2 production will be reduced, helping to create a clean environment and will enable operators to improve grid security and network stability. Finally, demand response services will provide multiple electricity package options to the consumers in which they can select an appropriate package according to their need which will give them more control over their electricity bill. System operators can optimize their grid operations to provide better power quality, and service providers can increase their income by offering additional services. © 2018 by authors and Scientific Research Publishing Inc.

Place, publisher, year, edition, pages
USA: Scientific Research Publishing, 2018. Vol. 8, no 9, p. 2007-2051
Keywords [en]
Smart Grids, Electricity Firms, Business Models, Disruptive Technology, Sustainable Energy
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:hh:diva-43762DOI: 10.4236/ajibm.2018.89134OAI: oai:DiVA.org:hh-43762DiVA, id: diva2:1514613
Available from: 2021-01-06 Created: 2021-01-06 Last updated: 2025-10-01Bibliographically approved
In thesis
1. Sustainable Electromobility: A System Approach to Transformation of Transportation
Open this publication in new window or tab >>Sustainable Electromobility: A System Approach to Transformation of Transportation
2023 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Electrification of transportation is generally analyzed from a technical aspect. Whereas the technical aspect is merely one of the main aspects of transforming the transportation system from fossil-based to electric. The other significant aspects, such as political, societal, and economic, are mostly neglected that can empower the transformation processes. This thesis aims to explore, analyze, and develop knowledge that leads to an understanding of identifying the key actors and their symbiotic relationships and dependencies in transforming the energy and transportation system from fossil-based to renewable and fossil fuel-powered vehicles to electric. 

The research was explorative and categorized into two studies. The Study – I focuses on the technological development that leads toward transforming from the old fossil-based analog electricity generation and distribution system to the new digitalized renewable system.This study further explores the impact of these disruptive technologies on the market and society, and the challenges hindering the implementation and adoption of the new energysystem. Study – II focuses on developing new knowledge and understanding by integrating technological, political, societal, and economic aspects into one model and named it a 'multidimensional readiness index model.' This model can serve as an analytical tool and provide a broader perspective for exploring, analyzing, evaluating, and determining the countries' positions in transforming the transformation system. The model has been applied to eight countries, two from Asia (China and India) and Australia and five from Europe (Germany, Norway, Sweden, Slovenia, and the UK). The kappa synthesizes the exploration of the papers. Additionally, the system approach is applied to explore and understand the symbiotic relationship in the new ecosystem among the key actors and stakeholders and their significant role in transforming the transportation system from fossil-based to electric. 

The main conclusion is that the countries with a higher symbiotic relationship among the key actors achieved a higher level of readiness in transforming the transportation system. In contrast, other countries with a low symbiotic relationship among the key actors are slowly catching up or even far behind in transforming the transportation system towards electrification. 

 The analysis shows that a higher level of readiness in transforming the transportation system is achieved by the countries where their government took firm decisions to integrate their associated manufacturing industries and society into their national agenda. China is one example of these countries leading globally in manufacturing and sales of electric vehicles. Norway does not manufacture electric vehicles. However, Norway is leading globally with the highest market share of electric vehicles. The Norwegian government uses its economic means to compensate for the price differentiation with its policies and provide subsidies and rebates to the buyers of electric vehicles. In countries that have adopted a fragmented approach toward transportation electrification and are waiting for the industries to take further initiatives, slow progress can be seen in those countries, such as Germany, Sweden, and the UK. Countries where the government showed less interest in electrification, even though they have introduced some policies, are still far behind in transforming the transportation system, such as India, Australia, and Slovenia. 

The key message is that the political role is decisive in transforming the energy and transportation system. It is a revolutionary change requiring enormous investment and political support to stabilize the industry and the market to compensate as the new actors enter the manufacturing industry and threaten the old firms. The new products enter the market and threaten the old businesses. The new political policies and regulations are required to balance the price differences between electric and fossil fuel vehicles by providing subsidies or rebates to encourage society to adopt change. Thus, energy and transportation industries are intertwined and operate under the umbrella of government rules and regulations. Without firm political support, the entire transformation from a fossil-based to an electric system is difficult to achieve. 

Place, publisher, year, edition, pages
Halmstad: Halmstad University Press, 2023. p. 164
Series
Halmstad University Dissertations ; 99
Keywords
Energy system, Transportation System, System Approach, Symbiotic Business Model, Innovation Ecosystem, Technology Readiness, Political Readiness, Societal Readiness, Economic Readiness
National Category
Economics and Business
Identifiers
urn:nbn:se:hh:diva-51506 (URN)978-91-89587-11-3 (ISBN)978-91-89587-10-6 (ISBN)
Public defence
2023-09-15, R4129, House R, Halmstad University, Sweden, Halmstad, 09:10 (English)
Opponent
Supervisors
Available from: 2023-08-25 Created: 2023-08-25 Last updated: 2025-10-01Bibliographically approved

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Bhatti, Harrison JohnDanilovic, Mike

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